Down 34% Already in 2026, Is It Finally Time to Buy ServiceNow Stock?

Shares of endeavor workflow bundle specializer ServiceNow (NYSE: NOW) person been crushed successful aboriginal 2026. A pullback similar this tin make opportunities for investors. But not each sell-off is an overreaction, truthful investors should look astatine the institution intimately comparative to its stock's valuation to spot whether it's an opportunity.

In ServiceNow's case, the underlying concern is inactive putting up spectacular numbers. But has the stock's valuation travel down capable to marque it a buy, particularly fixed the fast-changing quality of bundle successful an epoch of AI (artificial intelligence)?

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ServiceNow's fourth-quarter results showed a concern that is inactive compounding astatine a precocious rate. Its subscription gross was $3.47 cardinal successful Q4, up 21% twelvemonth implicit year.

Even better, the company's existent remaining show obligations (cRPO), which it defines arsenic declaration gross expected to beryllium recognized successful the adjacent 12 months, climbed to $12.85 billion, up 25% twelvemonth implicit year.

Management besides pointed to spot successful larger deals. The institution said it had 244 deals implicit $1 cardinal successful nett caller yearly declaration worth during the quarter, up 40% twelvemonth implicit year.

Demand trends astatine ServiceNow, therefore, don't amusement immoderate signs of AI disrupting its business. If anything, it seems to beryllium helping.

The company's outlook is impressive, too. For 2026, ServiceNow guided for subscription gross of astir $15.5 billion, with maturation astir 20% connected a constant-currency basis.

ServiceNow is intelligibly leaning into AI. In fact, the institution called itself "the AI power operation for concern reinvention" successful its astir caller net release.

And absorption was peculiarly upbeat astir ServiceNow's AI positioning during its net call.

"We are a level institution executing a semipermanent level strategy wherever AI agents and workflows are harmonious and synonymous, creating sustained advantage, not short-term wins," explained CEO Bill McDermott successful the company's fourth-quarter net call. "This makes ServiceNow's AI level much strategically applicable contiguous than ever."

Its occurrence with AI is showing up successful its business. Now Assist, ServiceNow's embedded generative AI acquisition for its Now Platform, saw nett caller yearly declaration worth successful Q4 much than treble twelvemonth implicit year.

In addition, ServiceNow announced successful its net study connected Jan. 28 that it has deployed Anthropic's generative AI model, Claude, arsenic portion of ServiceNow workflows to much than 29,000 employees.