ServiceNow Inc. (NYSE:NOW) shares are in the spotlight, with earnings on deck, mixed analyst activity, a stabilizing-but-bearish technical setup and Edge Rankings all drawing attention.
- ServiceNow shares are under pressure. Why is NOW stock trading lower?
Earnings Preview & History
ServiceNow is scheduled to report second-quarter earnings on July 22. The company is expected to report earnings per share of 76 cents along with revenue of $3.93 billion. For the prior quarter, ServiceNow reported earnings per share of 97 cents, beating the consensus estimate of 80 cents. The company also posted revenue of $3.77 billion, exceeding the consensus estimate of $3.75 billion.
ServiceNow has beaten EPS estimates in eight consecutive quarters. Over the last four quarters, the company has averaged an EPS surprise of 0.33% and a revenue surprise of 0.02%.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $135.63. Recent analyst moves include:
- DA Davidson: Buy (Lowers Target to $170.00) (July 20)
- Cantor Fitzgerald: Overweight (Raises Target to $141.00) (July 20)
- CLSA: Initiated with Underperform (Target $72.00) (July 20)
A Bearish Backdrop, But Stabilizing
ServiceNow is trading 0.8% below its 20-day SMA ($102.89), 1.5% below its 50-day SMA ($103.66), and 20.5% below its 200-day SMA ($128.41), keeping the bigger-picture trend tilted bearish despite the stock stabilizing near the low-$100 area. The death cross (50-day SMA below the 200-day SMA) that formed in August 2025 reinforces that rallies can still be treated as counter-trend until price can reclaim longer-term averages.
RSI at 51.13 is neutral, which usually signals the stock isn’t stretched in either direction or is more likely to chop around key levels than trend cleanly. In plain terms, RSI helps gauge whether recent buying or selling has become overheated; here, it reads like a market waiting for a catalyst rather than one already in motion.
From a levels perspective, traders will likely keep $114.00 on the radar as the first meaningful upside checkpoint, since it’s a nearby pivot-style area where rebounds can stall. On the downside, $89.50 stands out as key support, lining up as a prior "buyers stepped in" zone closer to the lower end of the 52-week range.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for ServiceNow, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 10.59) — The stock’s trend has lagged, which fits with price still sitting well below the 200-day moving average.
- Quality: Neutral (Score: 36.56) — The fundamentals screen as middle-of-the-pack, suggesting the story hinges more on execution and expectations than "best-in-class" quality signals.
- Value: Weak (Score: 12.89) — A premium-style valuation profile can be harder to defend when the chart is in a longer-term downtrend.
- Growth: Strong (Score: 87.83) — The market still views the company as a growth name, which can help on strong earnings but can also amplify downside if results disappoint.
The Verdict: ServiceNow’s Benzinga Edge signal reveals a growth-heavy profile with weak momentum and weak value characteristics. That mix often means the next sustained move depends on earnings delivering enough upside to flip sentiment and get the stock back above key moving averages.
ServiceNow Shares Drop
NOW Price Action: At the time of publication, ServiceNow shares are trading 2.45% lower at $102.13, according to data from Benzinga Pro.
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