ServiceNow shares fell 21% over the past week. The stock has declined more than 30% year-to-date. Shares currently trade near the $107 level. A broader market sell-off in AI and software stocks triggered the downturn. Investors cite high valuations and slowing growth as primary concerns.
Analysts suggest the current price is dislocated from company fundamentals. The company reported strong results for the fourth quarter. ServiceNow maintains a forward price-to-earnings ratio of 28x. Management guided for subscription revenue growth exceeding 20%.
The firm authorized a $5 billion share repurchase program. A consensus of 33 analysts maintains a Buy rating as of June 11, 2026.