ServiceNow Stock Has Shed 27% This Year — What Could 2026 Bring?

Shares in ServiceNow (NOW), a cloud‑based enterprise workflow platform provider, have fallen about 27% since the start of the year. Analysts are divided on where the company is headed in 2026.

While one analyst sees the California-based firm heading into 2026 riding on the strength of its robust AI-enhanced platforms, another warned that the “death of software-as-a-service (SaaS)” narrative could come for ServiceNow in 2026.

KeyBanc Predicts Impact of ‘Death of SaaS’ Narrative

This narrative describes what observers have warned is a seismic shift from subscription-based traditional software that sits atop databases to artificial intelligence-native systems. This transition is expected to erode demand for the former and pressure revenue as pricing moves away from per-user licenses toward outcome-based models.

KeyBanc analyst Jackson Ader, who recently downgraded NOW stock to Underweight (Sell), argued that the data on hiring for back-office information technology roles indicate the likelihood of the “death of SaaS” could haunt ServiceNow next year. This refers to roles such as IT support, admin, and internal systems.

The three-star analyst stated his team’s preference for software companies with small- and mid-market capitalization for 2026. Ader’s pre-split price target of $775 for NOW equates to $155 after the 5-for-1 stock split on December 17, implying only about 0.7% downside from current levels.

The split gives investors five shares for every ServiceNow share they previously owned, lowering the stock’s trading price and making it more accessible to investors. Several analysts trimmed their price targets to reflect the split, but generally remain bullish on the stock.

BTIG Sees ServiceNow Riding on AI Suite Growth

Meanwhile, BTIG analyst Allan Verkhovski recommends buying the stock and has set a $200 price target, implying more than 28% upside. Verkhovski noted that ServiceNow has expanded its platform for human and AI agent collaboration since launching Now Assist, its generative AI suite, in September 2023.

In addition, D.A. Davidson analyst Gil Luria is also bullish on ServiceNow’s rumored plans to acquire cybersecurity startup Armis for up to $7 billion. Luria reaffirmed his Buy rating and a price target of $220, suggesting over 41% upside. He believes the acquisition will help to bolster ServiceNow’s growing suite of security products.

Is ServiceNow a Good Stock to Buy?

Across Wall Street, ServiceNow’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to 26 Buys, three Holds, and one Sell issued by 30 analysts over the past three months.

Moreover, the average NOW price target of $227.85 implies about 46% upside from current trading levels.

See more NOW analyst ratings here.