NOW Stock Has Rebounded Over 54% Why ServiceNow’s Rally Could Have Further Room to Run Amit Singh Sat, August 15, 2026 at 8:00 AM PDT 3 min read NOW ServiceNow Inc building in Silicon Valley-by Sundry Photography via iStock After underperforming in the first half of the year, ServiceNow (NOW) stock has staged a strong recovery, rising 57.4% from its low of $81.24. The sell-off was driven largely by a broader shift in investor sentiment toward enterprise software stocks. As artificial intelligence (AI) reshapes the software industry, investors have grown concerned that AI-powered agents could disrupt traditional software vendors. These concerns triggered widespread selling across the sector, including ServiceNow. More News from Barchart Elon Musk Said Tesla Short Sellers Would Be 'Obliterated' Even Bill Gates Yet They've Made $9 Billion This Year Shorting the Stock Sergey Brin Wants Google to Double Down on Gemini. What That Means for GOOGL Stock. Alphabet Stock to $515: 3 Reasons the Bull Case Is Getting Stronger Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Margin pressure also weighed on the shares, adding to concerns about the company's near-term profitability. However, ServiceNow's underlying business momentum remains strong. Rising subscription revenue and an upbeat outlook suggest that the company is leveraging AI to accelerate its growth. Further, ServiceNow's expanding customer base and larger deals support its growth case. With investor sentiment improving and multiple growth catalysts in place, ServiceNow stock has room to run further. www.barchart.com ServiceNow: Multiple Factors Strengthen Its Bull Case ServiceNow's Q2 performance strengthens the investment case for the company. Its subscription business continued to grow at a healthy pace. Meanwhile, strong enterprise demand, platform consolidation, expanding customer spending, and accelerating AI adoption provide multiple avenues for solid growth ahead. ServiceNow's subscription revenue reached $3.975 billion in Q2, up 23% year-over-year (YOY) on a constant-currency basis. Moreover, its current remaining performance obligations (RPO) reached $13.2 billion, providing strong visibility into future revenue. The quality of this growth is encouraging, as it is increasingly driven by customers consolidating multiple workflows into ServiceNow's platform. Eighteen of its top 20 deals included at least eight products, suggesting that customers are expanding their relationship with ServiceNow across multiple functions. IT Service Management (ITSM) was included in 15 of the top 20 deals, while IT Operations Management (ITOM) appeared in 18 of them. Notably, 14 ITOM deals exceeded $1 million. Security and risk products were included in 16 of the top 20 deals, while CRM and industry workflows were also present in 16 deals, with 15 exceeding $1 million. Story Continues This matters because broader adoption is increasing customer wallet share while making ServiceNow more deeply embedded in enterprise workflows. Therefore, ServiceNow is benefiting from expansion within its existing customer base and new customer acquisition. Customer retention creates a strong foundation. ServiceNow's 98% renewal rate remains a significant competitive advantage. High retention gives the company a durable recurring-revenue base, while customer expansion provides an additional growth lever....
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