ServiceNow (NOW) shares have dropped 32% year-to-date, significantly underperforming the Zacks Computer & Technology sector, which saw an 18.2% increase. This decline has been primarily attributed to delayed on-premise deal closures in the Middle East, resulting in a 75-basis-point revenue headwind for Q1 2026.
In Q1 2026, ServiceNow’s management highlighted an addressable market exceeding $600 billion for their AI-enabled services across IT, HR, CRM, and security workflows. The company is also expanding its AI security portfolio through partnerships with Accenture and NVIDIA, aiming to streamline risk management and enhance cyber resilience.
For Q2 2026, ServiceNow projects subscription revenues between $3.815 billion and $3.820 billion, indicating a year-over-year growth of 22.5%. The Zacks Consensus Estimate expects revenues of $3.92 billion for the same period, showing a 22% growth, while earnings are estimated at 86 cents per share, down 4.88% year-over-year.
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