ServiceNow Inc. (ServiceNow (NOW)) shares jumped more than 8% on Monday, extending gains from last week's strong second-quarter earnings report. The move stood out as the technology sector fell 1.7%, making it the market's weakest performer. The Nasdaq declined 0.91%, while the S&P 500 slipped 0.31%. The Dow Jones Industrial Average and the Russell 2000 each gained 0.23%, but market breadth remained weak, with an advance-to-decline ratio of 0.8.

The company beat Wall Street's expectations with adjusted earnings of 90 cents per share on revenue of $3.99 billion. Subscription revenue rose 24.5% year over year, while AI adoption accelerated and management raised its full-year subscription revenue outlook. Investors continued to react positively to the quarterly results, which highlighted accelerating AI adoption, strong enterprise demand, and higher fiscal 2026 guidance. The rebound follows a sharp decline earlier this year and builds on the stock's recovery from its April low and May swing low.

Technical Picture Improves, but Caution Remains

ServiceNow is now trading above its 20-day, 50-day, and 100-day simple moving averages. The stock sits about 3.1% above its 20-day average, 2.7% above its 50-day average, and 4.6% above its 100-day average. Those levels suggest near-term momentum has improved. However, the longer-term trend remains weaker. The stock is still about 15.1% below its 200-day moving average and has fallen 45.55% over the past 12 months.

The broader chart also remains cautious. The 20-day moving average is below the 50-day average, while the 50-day average remains below the 200-day average. That bearish "death cross," formed in August 2025, suggests rallies could face resistance. Momentum indicators show mixed signals: the MACD remains below its signal line, and the histogram is negative, indicating bullish momentum has weakened. Traders are watching $114 as the next resistance level, with initial support near $89.50.

AI Growth and Outlook Support the Bull Case

ServiceNow provides cloud-based software that automates enterprise workflows across IT, customer service, human resources, and security operations. The company's latest results underscored continued demand for its AI platform. AI annual contract value surpassed $1 billion, while current remaining performance obligations rose 21% year over year to $13.2 billion. The company also raised the midpoint of its fiscal 2026 subscription revenue guidance to about $15.77 billion and reaffirmed its long-term goal of reaching $32 billion in annual revenue by 2030. For the third quarter, ServiceNow expects subscription revenue of $3.975 billion to $3.98 billion and current remaining performance obligations to grow 20% year over year in constant currency.

Analysts maintain a consensus Buy rating with an average price forecast of $137.28. Recent analyst actions include:

• Macquarie: Neutral (raises forecast to $110.00) on July 23
• Bernstein: Outperform (raises forecast to $248.00) on July 23
• JP Morgan: Overweight (raises forecast to $150.00) on July 23

ETF Exposure

ServiceNow remains a major holding in several technology-focused exchange-traded funds, including the iShares Expanded Tech-Software Sector ETF (IGV), the GraniteShares 2x Long NOW Daily ETF (NOWL), and the Global X Cloud Computing ETF (CLOU).

NOW Stock Price Activity: ServiceNow shares were up 8.40% at $107.08 at the time of publication on Monday.