Why ServiceNow Stock Is Plunging Today

By Scott Levine – Apr 10, 2026 at 3:58PM ESTKey PointsUBS reduced its price target on ServiceNow stock.ServiceNow projects growth on two important metrics in 2026, suggesting that investors shouldn't rush to click the sell button.The first full week of April trading hasn't been kind to ServiceNow (NOW 7.58%). Closing at $102.42 on Monday, shares of the software-as-a-service (SaaS) stock subsequently closed lower on each day of trading through Thursday. And the trend seems likely to continue today. A firm tempered its expectations for ServiceNow stock, and investors are responding by trimming their positions. As of 2:55 p.m. ET, shares of ServiceNow stock are down 7.1%. Image source: Getty Images. Winnowing confidence in the company leads to a sharply lowered price target UBS is no longer as bullish on ServiceNow's prospects as it was a couple of days ago. Last night, UBS downgraded ServiceNow stock to neutral from buy and slashed its price target to $100 from $170. Based on shares closing at $89.81 yesterday, the new UBS price target implies upside of 11%. ExpandNYSE: NOWServiceNowToday's Change(-7.58%) $-6.81Current Price$83.00Key Data PointsMarket Cap$94BDay's Range$81.24 - $88.9152wk Range$81.24 - $211.48Volume59MAvg Vol20MGross Margin77.53% According to Thefly.com, UBS lowered its expectations for ServiceNow stock because it's less sure the company is in a more advantageous position to benefit from the AI computing boom than its software peers. Moreover, UBS doesn't foresee the company surpassing analysts' expectations in the upcoming quarters as convincingly as it had done in the past. Should ServiceNow investors be running for the exits now? While it may be disconcerting for investors to find that UBS reduced its expectations for ServiceNow stock, they must keep their emotions in check. The opinions of UBS are, well, exactly that -- opinions, not facts. Investors would be wise to remember that, in 2026, ServiceNow projects subscription revenue growth of more than 20% year over year. Plus, the company, one of the leading SaaS stocks available to investors, forecasts a 2026 free cash flow margin of 36% -- an improvement over the 31.5% and 35% margins it reported in 2024 and 2025, respectively. For those with ServiceNow stock in their portfolios, the best approach now is to remain calm and continue monitoring the company's financial results for any warning flags.Read NextApr 9, 2026 •By Robert IzquierdoThe "SaaSpocalypse" Made ServiceNow Stock a Bargain. This Agentic AI Growth Stock Could 2X.Apr 8, 2026 •By Parkev Tatevosian, CFAShould Investors Buy ServiceNow Stock Instead of Snowflake Stock?Apr 8, 2026 •By Robert Izquierdo2 Tech Stocks That Could Help Set You Up for LifeApr 7, 2026 •By Justin PopeWall Street Analysts Still See 76% Upside in This Beaten-Down Artificial Intelligence (AI) Stock.

Should You Trust Them?Apr 3, 2026 •By John BallardTech Sell-Off: Wall Street Sees 60% or More Upside for These S&P 500 StocksApr 1, 2026 •By Bryan WhiteServiceNow Has to Sell the Same AI Technology That Could Replace It. Here's Why the Stock Is Down Nearly 50%.About the AuthorScott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.TMFProudMonkeyX@TMFProudMonkeyStocks MentionedServiceNowNYSE: NOW$83.00(-7.58%)-$6.81UBSNYSE: UBS$41.49(+0.24%)+$0.10*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.