ServiceNow closed the latest trading session at $97.47, down 3.06% on the day, even as Wall Street moved sharply higher. The software company’s shares have now lost 13.77% over the past month heading into earnings.
The pullback stood out against a strong session for the broader market. The S&P 500 rose 2.51%, the Dow gained 2.85% and the Nasdaq added 2.8%, leaving ServiceNow on the wrong side of a market-wide rally.
That drop matters because ServiceNow is heading toward an April 22, 2026 earnings report with expectations still pointing to growth. Analysts see adjusted earnings of $0.95 a share, up 17.28% from a year earlier, on revenue of $3.75 billion, which would rise 21.39% from the same quarter last year.
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For the full year, the Zacks Consensus Estimate calls for earnings of $4.14 per share and revenue of $15.98 billion. Those figures would mark gains of 17.95% and 20.32%, respectively, from the previous year, and the stock has seen no change in the consensus EPS estimate over the past month.
ServiceNow makes software that automates companies’ technology operations, putting it in the Computer and Technology sector and the Computers - IT Services industry. Even after the recent slide, the stock is trading at a forward price-to-earnings ratio of 24.27, above the industry average of 12.98, while its PEG ratio of 1.01 sits slightly below the industry average of 1.12.
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The valuation gap and the recent underperformance leave investors with a simple test ahead of the report: whether ServiceNow can turn its expected growth into a result strong enough to reset sentiment. The company carries a Zacks Rank of 4, or Sell, and its industry sits at No. 74, placing it in the top 31% of more than 250 industries.
