ServiceNow completed a 5-for-1 stock split after its shares traded above the $800 level, effectively broadening its retail investor base. Since the split, NOW has rebounded from a 48% decline off its highs, driven by accelerating subscription revenue—up 24% year-over-year in its most recent quarter—and growing transaction volumes on its Now Platform. A consensus of 18 Wall Street analysts assigns mean price targets implying 72% to 123% upside from current levels, citing strong annual recurring revenue (ARR) growth and improving operating margins as the main catalysts for further share appreciation in 2026.

Over the three months from late October through January, NOW shares fell roughly 37%, underperforming broader software indices amid heightened concerns around artificial intelligence competition and valuation fatigue across high-growth names. Management’s cautious revenue guidance for fiscal 2026—forecasting mid-teens percentage growth rather than the low-twenties—and an elevated acquisition spend to integrate specialist AI startups weighed on investor sentiment. Nevertheless, ServiceNow maintained a 90%-plus subscription renewal rate and repurchased $1.2 billion of stock in the quarter, underscoring confidence in its long-term growth trajectory despite short-term volatility.

Buy-side and independent research firms continue to favor NOW for its robust enterprise adoption and sticky customer base. The stock trades at approximately 20 times forward revenue—below its five-year average multiple—reflecting valuation compression rather than fundamental deterioration. Analysts highlight ServiceNow’s expanding AI-driven workflow capabilities, which they believe will underpin incremental cross-sell opportunities and margin expansion. On average, upgraded price targets since the split suggest a return to growth levels that could outpace the broader enterprise software sector through 2026.