Santa Clara, California-based ServiceNow, Inc. NOW provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. With a market cap of $191.5 billion, ServiceNow has helped 85% of the Fortune 500 companies to modernize their technology with its digital-first business model which enables them to innovate at scale and speed.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ServiceNow fits this bill perfectly. Given the company’s strong clientele, its valuation above this mark is not surprising. Moreover, the company serves organizations of every size and industry to put AI to work for people. ServiceNow AI Agents can learn, reason, take action, and make decisions autonomously while remaining under the guidance of users.
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Despite its strengths, ServiceNow has slipped more than 24% from its all-time high of $1,198.09 touched on Jan. 28. Moreover, ServiceNow has plummeted 13.9% over the past three months, lagging behind the Technology Select Sector SPDR Fund’s 
XLK 7.7% decline during the same time frame.
However, over the longer term, ServiceNow’s performance looks much more attractive. NOW stock soared 8.9% over the past six months and 17.7% over the past 52 weeks, outpacing XLK’s 4% gains over the past six months and 3.8% returns over the past year.
To confirm the overall uptrend and recent downturn, NOW stock has remained consistently above its 200-day moving average since early June 2024 and fallen below its 50-day moving average in late January 2025.
Despite reporting better-than-expected results, ServiceNow’s stock prices plummeted over 11.4% in the trading session after the release of its Q4 results on Jan. 29. Driven by the continued demand for its platform, ServiceNow reported a 21.3% year-over-year growth in total revenues to $2.96 billion and 21.2% year-over-year growth in subscription revenues to $2.87 billion. Furthermore, the company’s adjusted EPS increased 18% year-over-year to $3.67, exceeding the Street’s expectations.
However, the company expects a slowdown in its subscription revenue growth. ServiceNow expects its Q1 2025 subscription revenues to grow 18.5% ‑ 19% compared to the year-ago quarter which unsettled investor confidence.
Nevertheless, ServiceNow has significantly outperformed its peer Salesforce, Inc.’s 
CRM 7.5% decline over the past 52-week period.
ServiceNow has a consensus “Strong Buy” rating among the 38 analysts covering the stock. Its mean price target of $1,159.81 suggests a 27.4% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.