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More Reading from MarketBeat.com ServiceNow Is Extremely Oversold, Yet Analysts See 100%+ UpsideAuthored by Sam Quirke. Publication Date: 2/27/2026. 
Key Points - Shares of ServiceNow have fallen roughly 50% from last summer’s highs, despite continuing to beat earnings and revenue expectations.
- With the stock’s RSI plunging into extremely oversold territory, the price action is forming higher lows above $100.
- Analysts remain broadly bullish, with several firms reiterating Buy or equivalent ratings and pointing to substantial upside.
- Special Report: [Sponsorship-Ad-6-Format3]
After trading near $210 last summer, tech giant ServiceNow Inc (NYSE: NOW) now sits in the $105–$115 range. The multi-month decline effectively halved the stock's value, even though the company has consistently topped expectations in its quarterly reports. The disconnect has puzzled investors. Despite record revenue in its January report, the stock has been relentlessly sold. The culprit: narrative fear about the impact of artificial intelligence (AI) on traditional software businesses. In ServiceNow's case, investors worry customers could use AI to automate parts of the company's workflow-management platform themselves, compressing its long-term growth runway. That concern has driven a sharp re-rating over the past nine months. However, with the stock now oversold to historical extremes while revenue sits at an all-time high, that fear may have gone too far. Here's why the contrarian case is starting to gather momentum. AI As a Tailwind, Not a Threat In its latest earnings report in late January, ServiceNow emphasized that AI is not eroding demand — at least not to the extent bears claim. Management highlighted that subscription revenue growth remains strong and provided solid forward guidance. ServiceNow's forward growth may not be accelerating dramatically, but it's not in structural decline. More importantly, management has begun positioning AI as a tailwind rather than a threat. CEO Bill McDermott argued that AI doesn't replace enterprise orchestration; it depends on it. As enterprises adopt AI, they still need workflow coordination, automation layers and system integration — precisely where ServiceNow fits. The market will need convincing, but there are signs the pendulum has begun to swing. Technicals Are Flashing Oversold From a technical standpoint, the stock looked very oversold in late February. ServiceNow's relative strength index (RSI) recently fell to extreme levels following last month's report, marking one of the most washed-out readings in years. It's rare to see a stock this deeply oversold while revenue sits at an all-time high. With shares already down roughly 50%, the worst-case scenario appears largely priced in. Encouragingly, price action is beginning to stabilize. Shares have not made a new low since early February, and the chart is starting to show higher lows forming around the $100 level. If that base holds and momentum continues to improve, the narrative could flip from ServiceNow being a potential "AI victim" to a potential "AI beneficiary." Analysts Are Backing The Bull Case While the chart may not look great, analyst sentiment remains bullish. Citizens reiterated a Market Outperform rating in recent weeks, Wells Fargo maintained an Overweight rating, and Bernstein kept an Outperform rating. Citigroup's fresh price target of $237 implies upside well beyond 100% from current levels. Even if the most aggressive targets are taken with a pinch of salt, the broader message is clear: Wall Street doesn't see evidence of structural damage to the underlying business. Analysts point to resilient guidance, growing traction in AI-enabled offerings and strategic acquisitions as signs that the company's long-term positioning remains intact. What Needs to Happen Next For the recent price action to evolve into a sustained recovery, ServiceNow shares need to continue forming a base above $100 and add to the run of higher lows. That would signal the bears have exhausted themselves and lack the conviction to push the stock lower. Conversely, a decisive break below $100 would reopen downside risk and undermine the bull thesis. If buyers keep stepping in and momentum indicators continue to turn higher, we could see a sharp comeback rally. Deeply oversold names with large upside targets can move quickly once the bears step back. Still, the setup is not without risk. ServiceNow's revenue growth has slowed to its lowest pace in years, and it remains to be seen how effectively management can make AI work for the company rather than against it. Yet when a company consistently beats expectations, posts record revenue and retains broad analyst support despite losing roughly half of its market value, the risk-reward profile starts to look quite attractive.
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