ServiceNow Inc. (NYSE:NOW) stock is moving higher on Friday after the software company reported second-quarter financial results that beat analyst estimates and raised its full-year subscription revenue guidance. The Nasdaq is down 0.80% while the S&P 500 has gained 0.23%.
On Wednesday, ServiceNow reported quarterly earnings of 90 cents per stock unit, beating the consensus estimate of 85 cents. Revenue reached $3.99 billion, topping expectations of $3.93 billion. Subscription revenue grew 24.5% year-over-year to $3.88 billion, while current remaining performance obligations (cRPO) increased 21.5% in constant currency.
Executive Commentary On Growth
ServiceNow CEO Bill McDermott touted the company’s “sterling fundamentals,” which have the company operating to the “Rule of 56” and beating the classic SaaS “Rule of 40” (revenue growth + profit margin ≥ 40).
The company also increased full-year subscription revenue growth guidance to 21% and, according to McDermott, aims to sustain a “Rule of 60” by 2030.
Analyst Highlights On AI Momentum
JPMorgan analyst Samik Chatterjee reiterated an Overweight rating and raised the price forecast from $145 to $150, citing AI momentum. BofA Securities analyst Tal Liani maintained a Buy rating with a $130 price forecast, noting AI annual contract value surpassed $1 billion.
Meanwhile, Bernstein maintained an Outperform rating and raised its price forecast to $248 and BMO Capital maintained an Outperform rating with a $118 price forecast. Trading action coincided with additional research notes published on Friday. Macquarie maintained a Neutral rating and raised its price forecast to $110. UBS maintained a Neutral rating while adjusting its price forecast down to $110.
Technical Analysis
Even after Friday’s pop, the longer-term trend is still pressured: the stock is trading 6.8% below its 20-day SMA ($103.56), 7.3% below its 50-day SMA ($104.07), and 23.8% below its 200-day SMA ($126.69). That stack of moving averages overhead means rallies can run into supply quickly unless price can start reclaiming the $100–$105 area.
Zooming out, the death cross that formed in August 2025 (50-day SMA falling below the 200-day SMA) still frames this as a sell-rallies-until-proven-otherwise chart for many longer-term trend traders.
- Key Resistance: $114
- Key Support: $89.50
NOW Stock Price Activity: ServiceNow shares were up 6% at $97.53 at the time of publication on Friday, according to Benzinga Pro data.
Photo: JHVEPhoto / Shutterstock
