ServiceNow Inc. (NYSE:NOW) stock traded higher on Wednesday, outperforming both the broader market and the technology sector as investors gravitated toward relative strength names despite a risk-off session.

The stock gained about 2% while the Nasdaq Composite fell 1.3% and the S&P 500 declined 0.9%. The Technology Select Sector SPDR Fund (XLK) also traded lower, making ServiceNow’s advance stand out.

Technical Strength Stands Out

ServiceNow’s gains appear driven by technical resilience. The stock is holding above several key moving averages and continues to build on its recovery from the April low.

Shares remain above the 20-day simple moving average of $107.08, the 50-day SMA of $99.42, and the 100-day SMA of $106.40. That setup supports a constructive near-term trend.

However, the longer-term picture remains mixed. ServiceNow still trades 22.2% below its 200-day SMA of $139.52 and remains below the death cross that formed in August 2025, when the 50-day moving average fell beneath the 200-day moving average.

Momentum indicators suggest consolidation rather than a breakout. The relative strength index sits at 50.06, a neutral reading that indicates neither buyers nor sellers have a clear advantage.

The next resistance level sits near $111. A move above that area could strengthen bullish momentum. On the downside, support around $98 remains critical because it aligns closely with the 50-day moving average and a previous buying zone.

Analyst Sees Demand Holding Up

BNP Paribas analyst Stefan Slowinski said ServiceNow remains on a path toward more than $30 billion in subscription revenue by fiscal 2030, supported by resilient demand, AI monetization, and growth across newer product areas.

Slowinski said ServiceNow has not seen major macro-related demand pressure beyond the on-premise deal slippage it flagged in the first quarter in the Middle East.

He said at least one delayed deal closed early in the second quarter, and the company still expects all delayed deals to close this year, though its guidance assumes only some will be completed.

He said ServiceNow expects U.S. federal net new annual contract value to accelerate in fiscal 2026, with the acceleration weighted toward the back half of the year, as the company laps prior DOGE and government shutdown effects.

Slowinski also said M&A will support results, with Armis contributing 125 basis points and Moveworks adding 100 basis points to both subscription revenue growth and cRPO growth in the second quarter and fiscal 2026.

AI Products Support Long-Term Targets

Slowinski said ServiceNow’s 2026 Financial Analyst Day targets call for subscription revenue of more than $30 billion in the base case and about $32 billion in the bull case by fiscal 2030.

He said that outlook assumes slower growth in mature businesses such as core ITSM and ITOM, offset by faster growth in AI Control Tower/Data Analytics, Security & Risk, and CRM/front office.

He said ServiceNow sees each of those newer areas potentially growing at compound annual growth rates of more than 25%.

Slowinski said customers are moving from broad AI experimentation toward tools that help monitor usage, manage risk, and demonstrate returns, which aligns with ServiceNow’s strength in simplifying complex IT environments.

Pricing And AI Cost Controls Remain Key

Slowinski said ServiceNow’s new Foundation, Advanced, and Prime packaging now includes AI at every level.

He said customers have responded well to its hybrid pricing model, which combines seat-based pricing with consumption-based AI usage.

He said ServiceNow expects a 20% to 30% price uplift on base seat pricing when customers adopt AI features, and the company can also charge for AI assists after customers use their initial allocation.

Slowinski said ServiceNow remains confident it can monetize AI while keeping gross margins above 80% through fiscal 2030, helped by routing some tasks to small-language models in its own data centers and by using existing workflow logic rather than sending every task to frontier models.

Slowinski also highlighted Project Arc, ServiceNow’s collaboration with NVIDIA Corp. (NASDAQ:NVDA) to develop an autonomous enterprise desktop agent using OpenShell and ServiceNow governance tools.

Wall Street maintains a Buy consensus rating on the stock, with an average price forecast of $139 based on 50 analyst ratings. Recent analyst actions include Bank of America Securities maintaining a Buy rating with a $130 forecast, Bernstein raising its forecast to $236 while keeping a Market Perform rating, and Macquarie maintaining a Neutral rating with a $109 forecast.

NOW Stock Price Activity: ServiceNow shares were up 1.73% at $108.82 at the time of publication on Wednesday, according to Benzinga Pro data.

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