Valuation concerns capped ServiceNow (NYSE: NOW) price action in 2025, setting up a correction and buying opportunity unfolding in 2026. The Q4 release not only affirmed the company’s strengths but also its longer-term outlook and deepening value. Trading at approximately 30x earnings today, the stock is approximately 15x the 2030 outlook, suggesting a solid double-digit to triple-digit price advance lies ahead.
Institutional activity is another factor highlighting the early 2026 opportunity. The group sold on balance in Q4 2025, harvesting losses for tax purposes, but bought on balance for the year and accelerated activity in early 2026. Buying in January topped $6 billion, or approximately 4% of the market cap, and will likely remain solid due to the value opportunity.
