Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Additional Reading from MarketBeat Media The Time to Buy ServiceNow Is Now: Oversold and Ready for a ReboundReported by Thomas Hughes. Posted: 1/31/2026. 
Key Takeaways - ServiceNow looks set up for a 2026 rebound and may just need one clear catalyst to bring retail buyers back.
- Institutions are buying into the pullback in early 2026, treating it as a value-driven entry point.
- Cash flow and growth execution support the outlook, with recent equity gains reinforcing the longer-term case.
Valuation concerns capped ServiceNow (NYSE: NOW) price action in 2025, producing a correction that has opened a buying opportunity in 2026. The Q4 release reaffirmed the company's strengths, its longer-term outlook and increasing value. Trading at roughly 30x current earnings and about 15x the company's 2030 outlook, the stock suggests a solid double-digit to triple-digit price advance could be ahead. Institutional activity is another factor highlighting the early-2026 opportunity. Institutions were net sellers in Q4 2025—harvesting losses for tax purposes—but were net buyers for the year and stepped up purchases in early 2026. January inflows topped $6 billion, or about 4% of market cap, and are likely to remain solid given the value proposition. The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. Highlights from the Q4 release include a $5 billion increase to the buyback authorization. The buybacks are focused on offsetting dilution and remain a meaningful factor for shareholders. ServiceNow does not pay a dividend and typically does not buy back shares aggressively, yet it continues to invest heavily in growth and delivered an attractive ~35% equity gain for investors in 2025. Year-end balance-sheet metrics show the company is well-positioned to continue executing its strategy, and the 2026 outlook points toward another potential double-digit equity gain. Generative AI Drives Q4 Strength for ServiceNow ServiceNow posted a solid quarter, with revenue rising more than 20% to over $3.5 billion. Subscription revenue increased 21% year-over-year, driven by agentic and generative AI tools and new clients. The Now Assist generative-AI tool is a growth pillar, expanding more than 100% year-over-year, while net new contract volume for agreements over $1 million grew by 40%. Margin news is also favorable despite the market response. The company delivered margin strength, supported by revenue leverage and operational execution, leaving adjusted EPS ahead of expectations. Adjusted earnings of $0.92 were about $0.03 above the MarketBeat-tracked consensus, backed by a robust 2026 outlook. Management guided revenue growth to slow to the high-teens to low-20s range—still above consensus—and that guidance may be conservative given a rise in remaining performance obligations (RPO). Current RPO (cRPO) increased 25%, and total RPO climbed 26.5%, suggesting potential for acceleration in 2026. ServiceNow Stock Overextends, Diverges From Indicators The stock plunged more than 10% after the Q4 release and guidance update and could face additional pressure in early 2026. However, chart indicators—notably stochastic and MACD—show significant divergences that suggest the decline may be overstretched and set the stage for a meaningful rebound. In that scenario, ServiceNow could find a bottom in early 2026 and set up to rally later in the year. The December stock split also affected price action. Splits often give short-term sellers an opportunity to cash out, adding near-term downward pressure. Historically, companies that split shares tend to trend higher over the long term because splits typically follow sustained price appreciation driven by strong fundamentals, cash flow and capital returns—conditions that generally persist after the split. As a result, current selling pressure on ServiceNow may transition into renewed accumulation. A forthcoming quarterly report could serve as the catalyst for a rebound. Sustained outperformance would likely push analysts into a more bullish posture and lure retail investors back to buying. At present, analysts are trimming price targets for this Moderate Buy-rated stock, pushing estimates toward the low end of the range—roughly where the shares are trading now—with those lower targets providing a potential floor near key support. 
| 
