Key Takeaways
- NOW shares have tumbled 34% year-to-date, tracking toward a seventh consecutive monthly loss.
- First quarter 2026 results arrive after today’s closing bell; Wall Street forecasts $0.97 EPS on $3.75B revenue.
- The Now Assist platform saw its annual contract value surge over 100% year-over-year last quarter, with 35 contracts exceeding $1M.
- TD Cowen maintains optimism for a “solid beat and raise” despite slashing its price target 24% to $140.
- Analyst sentiment remains overwhelmingly positive: 30 of 35 rate NOW a Buy, with average targets suggesting 65%+ potential gains.
ServiceNow faces a pivotal moment as it prepares to unveil Q1 2026 financial results. The enterprise software giant has endured a brutal year, with shares plummeting 34% amid widespread concerns about artificial intelligence’s impact on traditional SaaS business models.
ServiceNow, Inc., NOW
Tonight’s after-hours announcement comes with high expectations. Wall Street anticipates adjusted earnings reaching $0.97 per share — representing 20% year-over-year growth when accounting for the company’s December 5-for-1 stock split — alongside revenue of approximately $3.75 billion, marking 21% annual growth.
Meeting these projections would demonstrate continued operational strength. The bigger question: will strong fundamentals be sufficient to reverse investor sentiment?
The enterprise software landscape has experienced unprecedented turbulence throughout 2026. A prevailing “death of SaaS” thesis — suggesting AI-native solutions will cannibalize conventional software revenues — has erased nearly $2 trillion in market value since early February.
ServiceNow finds itself at the epicenter of this transformation. Operating as both a workflow automation provider and enterprise AI platform, the company faces dual exposure: vulnerability to disruption while simultaneously offering solutions to capitalize on the AI revolution.
Now Assist Emerges as Critical Performance Indicator
While topline revenue and earnings matter, investor attention will zero in on Now Assist — ServiceNow’s generative artificial intelligence product portfolio developed on its proprietary AI Platform.
During the fourth quarter, management disclosed that Now Assist’s annual contract value expanded by more than 100% compared to the prior year. CEO Bill McDermott highlighted 35 individual transactions valued above $1 million during Q4’s earnings presentation.
Any deceleration in this momentum would likely pressure shares lower. Conversely, continued or accelerated growth could provide the bullish catalyst investors seek.
Adding pressure, the stock approaches an unprecedented seventh straight month of losses — potentially establishing its longest decline streak in company history, according to Dow Jones Market Data.
Wall Street Maintains Confidence Despite Target Reductions
The sustained selloff hasn’t diminished analyst optimism. TD Cowen’s Derrick Wood affirmed his Buy recommendation following recent industry discussions, anticipating “a solid beat and raise.” However, he reduced his price objective 24% from $185 to $140, still implying approximately 40% appreciation potential.
Truist analyst Miller Jump similarly maintained his Buy stance while lowering his target from $175 to $125 — a 29% reduction — while identifying roughly 25% upside opportunity. Jump emphasized that numerous enterprise customers continue regarding ServiceNow as an essential AI integration partner rather than a displacement risk.
He additionally highlighted vendor consolidation trends as a favorable dynamic. As organizations streamline their software vendor portfolios, established, deeply integrated platforms like ServiceNow typically gain market share.
Across Wall Street, 30 of 35 analysts maintain Buy ratings on NOW, with only four Hold recommendations and a single Sell rating. The consensus price target stands at $165.69 — suggesting more than 65% upside from current trading levels.
Results will be released following today’s market close.
The post ServiceNow (NOW) Stock: Q1 2026 Earnings Preview and What Wall Street Expects appeared first on Blockonomi.
Source: https://blockonomi.com/servicenow-now-stock-q1-2026-earnings-preview-and-what-wall-street-expects/