ServiceNow Stock: Is NOW Underperforming the Technology Sector?
/ServiceNow%20Inc%20building%20in%20Silicon%20Valley-by%20Sundry%20Photography%20via%20iStock.jpg "ServiceNow Stock: Is NOW Underperforming the Technology Sector?")
ServiceNow Stock: Is NOW Underperforming the Technology Sector?
Publish Date: 2026-05-31 14:01:00
Source Domain: www.barchart.com
ServiceNow Inc building in Silicon Valley-by Sundry Photography via iStock
With a market cap of $128.2 billion, ServiceNow, Inc. (NOW) is a leading provider of cloud-based digital workflow solutions that help organizations automate and streamline business operations across industries worldwide. The company offers a comprehensive portfolio of products spanning IT services, customer service, security, risk management, human resources, and workflow automation, enabling enterprises to improve efficiency and enhance user experiences.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and ServiceNow fits this criterion perfectly. Headquartered in Santa Clara, California, ServiceNow serves customers globally and continues to expand its capabilities through innovation, strategic partnerships, and AI-driven solutions.
Shares of the Santa Clara, California-based company have dipped 41.2% from its 52-week high of $211.48. Over the past three months, shares of the company have increased 15.2%, which lagged behind the State Street Technology Select Sector SPDR ETF’s (XLK) surge of 37.7% during the same period.
www.barchart.com
The technology giant’s stock has declined 18.8% on a YTD basis, underperforming XLK’s 32.7% increase. In the longer term, shares of ServiceNow have dropped 39.1% over the past 52 weeks, compared to XLK’s 65.2% gain over the same time frame.
The stock has been trading below its 50-day and 200-day moving averages since last year.
www.barchart.com
Shares of ServiceNow fell 17.8% following its Q1 2026 results on Apr. 22 as the company projected a lower-than-expected full-year subscription adjusted gross margin of 81.5%, below analysts’ estimate, primarily due to the impact of recent acquisitions, including the Armis deal. Investors were also concerned that subscription revenue growth faced an approximately 75-basis-point headwind from delayed closings of several large on-premise deals in the…
