ServiceNow (NOW) shares dropped approximately 37% year-to-date by late June 2026. Investors cite slowing organic growth, margin pressure, and rising competition from AI startups.
Analysts highlight decelerating bookings growth as a core concern. Several financial firms maintain an Underweight rating on the stock.
The company beat first-quarter estimates and raised its full-year revenue outlook. These results failed to reverse the prevailing negative market sentiment.
ServiceNow’s valuation has compressed to its lowest level in company history. Markets are currently weighing AI product potential against broader growth and competition risks.