Is ServiceNow Stock Underperforming the Nasdaq?

• StockStory Top Pick NOW -2.74%
• ^IXIC +0.82%

Headquartered in Santa Clara, California, ServiceNow, Inc. (NOW) is a leading enterprise software company that provides a cloud-based platform designed to automate and streamline workflows across IT, HR, customer service, security, and broader business operations. Founded in 2003, the company has evolved from an IT service-management tool into a comprehensive digital workflow platform used by global enterprises to modernize processes, reduce manual work, and improve efficiency.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and ServiceNow fits the label perfectly, with its market cap of $171.7 billion exceeding this threshold, underscoring its size, influence, and dominance within the software application industry. ServiceNow serves global enterprises across various industries and is recognized for its strong revenue growth and recurring subscription-based income.

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This IT service management giant is currently trading 33% below its 52-week high of $1,198.09, reached on Jan. 28. NOW has dropped 7.2% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 7.8% rise over the same time frame.

In the longer term, NOW has soared 5% over the past 52 weeks, trailing the $NASX’s 21.1% return over the same time frame. Moreover, on a YTD basis, shares of NOW are down 24.3%, compared to NASX’s 20.2% rise.

To confirm its bearish trend, ServiceNow has been trading below its 200-day and 50-day moving averages since late July.

On Nov. 18, ServiceNow shares dipped 2.1% after the company announced new and upcoming integrations with Microsoft Corporation (MSFT), including Microsoft Agent 365, aimed at delivering seamless agentic AI orchestration and governance for shared customers. The collaboration brings together workflow intelligence, secure cloud infrastructure, and AI governance to connect copilots, agents, and data across Microsoft 365 and the ServiceNow AI Platform. This unified approach is designed to provide enterprises with greater visibility, compliance, and control over AI agents, establishing a new benchmark for enterprise-grade AI deployment and management.

ServiceNow’s outperformance looks pronounced when compared to its rival, Salesforce, Inc. (CRM), which declined 33.5% over the past 52 weeks and 31.8% on a YTD basis.

The stock has a consensus rating of "Strong Buy” from the 40 analysts covering it, and the mean price target of $1,159.94 suggests a 44.5% premium to its current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com