Should I Buy NOW? NOW 2026 Analysis

Should You Buy ServiceNow Inc (NOW) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

100.740

1 Day change

-1.84%

52 Week Range

211.480

Analysis Updated At

2026/02/05

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Not a good buy right now for an impatient entry: price is in a strong bearish trend (SMA_200 > SMA_20 > SMA_5) with negative, expanding MACD, implying downside momentum is still in control.
While the stock is deeply oversold (RSI_6 ~16.6) and sitting near a major support zone (~101–109), oversold can persist in downtrends; the higher-probability setup is after stabilization/reclaiming key levels.
Options positioning is modestly supportive (put/call ratios < 1), but elevated IV suggests the market still expects large moves—typically consistent with uncertainty rather than a clean bottom.
Wall Street remains broadly positive on fundamentals (mostly Buy/Outperform), but the wave of price-target cuts signals sentiment/valuation compression risk is still active.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend: Bearish across moving averages (SMA_200 > SMA_20 > SMA_5), indicating the path of least resistance remains down.
Momentum: MACD histogram -1.533 and negatively expanding → downside momentum is strengthening, not fading yet.
Mean reversion: RSI_6 = 16.648 (oversold) → increases odds of a short-term bounce, but does not by itself confirm a bottom.
Key levels:
- Support: S1 ~108.712 (already below), S2 ~101.236 (next key support)
- Resistance/Pivot: Pivot ~120.814 (needs reclaim to improve near-term structure)
Near-term pattern odds (provided): 60% chance of mild declines over next day/week and ** -3.11% bias over next month**, consistent with a still-weak tape.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Put/Call ratios below 1 (OI PCR 0.71, Volume PCR 0.57) skew more call-heavy, implying relatively constructive positioning.
Volatility: 30D IV ~49.12 vs HV ~45.94 and IV percentile ~85 → options are expensive; market is pricing elevated uncertainty/large moves.
Activity: Today's volume ~~114,484 with today vs 30D avg volume ~86.85% (active but not extreme). Open interest is sizable (~~789,779) and today vs OI avg ~115%, indicating heightened positioning/attention.

Technical Summary

Sell

Buy

Positive Catalysts

- Fundamental growth remains strong: 2025/Q4 revenue +20.66% YoY (still a high-quality growth profile).
- Multiple commentators (e.g., Citi) frame the software sell-off as overdone, which can support a relief rally if macro/sentiment stabilizes.
- Company narrative support: CEO emphasizes AI will depend on and reinforce existing enterprise software architecture, countering “AI replaces SaaS” fears.
- Congress trading (last 90 days): 4 purchases, 0 sales, total $1.5M–$5.0M (median $3.3M) → notable positive signal from influential buyers.

Neutral/Negative Catalysts

- Price action is decisively risk-off: -6.34% regular-session move with additional -2.05% pre-market weakness, consistent with broad software derisking.
- News flow highlights fears that emerging AI platforms threaten established SaaS, keeping a valuation overhang on the group.
- Truist commentary: seat-based model concerns and reduced price targets across peers can weigh on sentiment for enterprise software.
- Technical structure remains weak (bearish MAs + expanding negative MACD), increasing the probability of further downside tests toward ~101 support.

Financial Performance

Latest quarter: 2025/Q4
Revenue: $3.568B, +20.66% YoY (strong top-line growth).
Net income: $401M, +4.43% YoY (growth, but notably slower than revenue).
EPS: 0.38, +2.70% YoY (modest per-share growth).
Profitability: Gross margin 76.63%, down 2.58% YoY → margin pressure is a key watch item even with strong revenue growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Ratings remain broadly constructive (Buy/Outperform/Overweight dominate), but the dominant recent change is price-target cuts post-Q4.
Notable updates:
- Goldman Sachs (2026-02-02): added to US Conviction List, Buy, PT $216 (very bullish on sustained ~20% organic growth potential).
- Many firms (2026-01-29): PTs lowered (e.g., JPM $195 from $215; Evercore $175 from $225; multiple others in $170–$200 range) while keeping positive ratings.
- Citi (2026-01-29): raised PT to $237 from $235, maintained Buy.
Wall Street pros: durable enterprise platform, AI traction, strong subscription-led growth profile.
Wall Street cons: near-term sentiment is fragile, valuation/rerating unclear near-term, and mixed investor reaction despite “solid” results.

32 Analyst Rating

Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172 USD and a high forecast of 263 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

30 Buy

2 Hold

0 Sell

Strong Buy

Current: 102.630

Low

172

Averages

222.81

High

263

Current: 102.630

Low

172

Averages

222.81

High

263

Truist

Buy

downgrade

$240 -> $175

AI Analysis

2026-02-05

New

Reason

Truist

Price Target

$240 -> $175

AI Analysis

2026-02-05

New

downgrade

Buy

Reason

Truist lowered the firm's price target on ServiceNow to $175 from $240 and keeps a Buy rating on the shares as part of a broader research note on Infrastructure Software names. The sector pullback is being driven almost entirely by concerns over terminal value rather than near term fundamentals, making AI narratives increasingly critical, the analyst tells investors in a research note. The vendors with predominantly seat-based models were the worst performers in the firm's coverage in 2025, and they have continued to underperform the group through the beginning of 2026, Truist states, adding that it "sees traction" for AI use cases and a business shift away from seat-based deployments as strategic imperatives for these companies.

Goldman Sachs

NULL

Buy

initiated

$216

2026-02-02

Reason

Goldman Sachs

Price Target

$216

2026-02-02

initiated

NULL

Buy

Reason

Goldman Sachs analysts added ServiceNow to the firm's US Conviction List as part of its monthly update. Goldman believes ServiceNow can sustain 20% organic growth annually through 2029 given its "still-robust" expansion opportunities in new domains. The firm has a Buy rating on the shares with a $216 price target.

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NOW Should I Buy

NOW Should I Buy

Should You Buy ServiceNow Inc (NOW) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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