ServiceNow Inc (NYSE:NOW) shares are rising Wednesday. The company will report its first-quarter earnings after the bell, and traders are leaning bullish into the print. Here’s what you should now.
- ServiceNow stock is charging ahead with explosive momentum. What’s fueling NOW momentum?
Expectations Build Ahead Of Q1 Results
Wall Street is looking for 80 cents in earnings per share on $3.75 billion in revenue, and the setup heading into the announcement reflects growing confidence that the company can deliver another strong quarter. Expectations may be elevated because ServiceNow’s last report beat.
Analysts are watching closely to see whether ServiceNow can maintain the pace it set in the fourth quarter, when subscription revenue grew 21% year‑over‑year and total revenue climbed 20.5%. The company also posted 25% growth in current remaining performance obligations, a key forward‑looking metric that often foreshadows future revenue strength.
With first-quarter guidance calling for 21.5% subscription revenue growth (18.5%–19% in constant currency), investors are looking for confirmation that the company’s AI‑driven demand cycle is still accelerating.
Q4 Strength Set the Stage For A High‑Stakes Q1
Last quarter’s performance was exceptional across every major metric. ServiceNow more than doubled net new ACV for its Now Assist AI products, closed 244 deals over $1 million, and expanded its base of customers generating more than $5 million in ACV to 603.
Management described the fourth quarter as a “remarkable year of AI innovation,” and the company backed that confidence with a $5 billion share repurchase authorization, including an imminent $2 billion accelerated buyback.
CEO Bill McDermott has repeatedly framed the company as the “AI control tower for business reinvention,” and investors want to see that narrative reflected in the first quarter numbers.
The Technical Side
ServiceNow is still working through a longer-term downtrend, sitting much closer to its 52-week low ($81.24) than its 52-week high ($211.48), which keeps the bigger-picture backdrop cautious. The stock is trading 4.6% above its 20-day simple moving average (SMA) but 18.2% below its 100-day SMA, a split that points to a short-term rebound inside a weaker intermediate trend.
The moving average structure remains a headwind: the 20-day SMA is below the 50-day SMA, and the death cross that formed in August 2025 (50-day SMA below the 200-day SMA) signals the longer trend has been tilted toward sellers. At the same time, the moving average convergence divergence (MACD), a trend/momentum measure, has the MACD line above the signal line with a positive histogram, which hints that downside pressure is easing versus earlier in the move.
Over the last 12 months, the stock is down 33.08%, which is consistent with a market that has been repricing the name lower over time. That drawdown makes the $98 area more important because it’s where buyers have recently shown up and where a failed bounce can start to look like continuation.
- Key Resistance: $111.00 — an area where rallies have recently stalled.
- Key Support: $98.00 — a level where demand has tended to appear.
NOW Shares Are Moving Higher
NOW Price Action: ServiceNow shares were up 2.08% at $102.22 at the time of publication on Wednesday, according to Benzinga Pro.
Image: JarTee/Shutterstock
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