ServiceNow stock dropped nearly 20%. The decline followed its Q1 2026 earnings report. Seeking Alpha’s Deep Value Investing upgraded the rating. The firm described the selloff as "ugly enough to be interesting."
The upgrade cites stock mispricing and momentum in AI monetization. A reasonable forward earnings multiple supports the cautiously bullish outlook.
ServiceNow exceeded Q1 revenue expectations. The company also beat earnings estimates. Current remaining performance obligations (cRPO) slowed. The Armis acquisition diluted margins. Geopolitical factors delayed deals.