NOW

ServiceNow (NOW) stock is rising 14% to $124 as capital rotates into beaten-down enterprise software following Dell Technologies (DELL) posting Q1 FY2027 revenue of $43.84B (up 88% YoY) with AI-optimized server revenue jumping 757% to $16.13B. Snowflake (SNOW) has reported Q1 revenue of $1.39B (up 34% YoY) and raised its full-year guidance, while Wipro (WIT) has expanded its AI partnership with ServiceNow (NOW) for agentic workflows. Dell’s blowout earnings validated the enterprise AI infrastructure thesis that ServiceNow is positioned to capture through its workflow and governance layer, triggering broad repricing across the software stack as the “SaaSpocalypse” narrative retreats. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn't make the cut. Grab the names FREE today. Shares of ServiceNow (NYSE:NOW) are up 14% in Friday trading, changing hands at roughly $124 after closing Thursday at $108.73. The pop comes as capital rotates back into beaten-down enterprise software names following a blowout quarter from Dell Technologies (NYSE:DELL). The move is striking given the setup. ServiceNow stock still sits 47% below its one-year high, so this is a bounce off of a deeply oversold tape. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn't make the cut. Grab the names FREE today. The broader software complex is participating. Snowflake (NYSE:SNOW), Wipro (NYSE:WIT), and C3.ai (NYSE:AI) shares are all in motion as investors reprice the AI workflow layer. Dell Technologies reported Q1 FY2027 results after Thursday's close, posting revenue of $43.84 billion, up 88% year over year (YoY) against a consensus near $35.77 billion. Non-GAAP EPS of $4.86 crushed the $2.96 estimate by 64%. The headline figure was AI-optimized server revenue of $16.13 billion, up 757% YoY, with $24.4 billion in AI orders booked during Q1. Dell Technologies also raised its full-year FY27 revenue guidance to $165 billion to $169 billion and lifted its full-year AI server outlook to roughly $60 billion. Those numbers validate the enterprise AI buildout that ServiceNow is leveraged to. ServiceNow sits as the workflow and governance layer on top of that infrastructure spend, and the read-through is direct. Dell stock is up 29% in Friday's session. The rotation started earlier in th...

The company reported better-than-expected earnings but analysts are focused on the AI product pipeline.

It has been about a month since the last earnings report for CoStar Group (CSGP). Shares have lost about 5.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is CoStar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. CoStar Group reported non-GAAP earnings of 23 cents per share in the first quarter of 2026, which surpassed the Zacks Consensus Estimate by 30.16%. The company reported earnings of 15 cents per share in the year-ago quarter, up 64.3% year over year.Revenues of $897 million rose 22.5% year over year, missing the Zacks Consensus Estimate by 0.06%.The quarter featured sharp profitability improvement, supported by cost efficiencies and strong performance across its real estate marketplaces. Annualized net new bookings were $67 million, up 20% from the year-ago period. CoStar Group reported balanced growth across its two operating segments, with Residential Real Estate continuing to expand faster than the Commercial Real Estate portfolio. Commercial Real Estate revenue (52.6% of revenues) was $472 million, up 15.4% year over year, while Residential Real Estate revenue (47.4% of revenues) was $425 million, up 31.6% year over year.Within Commercial Real Estate, CoStar Group’s revenues (36.9% of revenues) were $331, which increased 8.5% year over year. LoopNet’s revenues (9.5% of revenues) were $85 million, which increased 16.4% year over year. Other Commercial Real Estate revenues (6.2% of revenues) were $56 million, which increased 80.6% year over year, aided by contributions from acquired operations. In the first quarter of 2026, the company highlighted the launch of the Homes.com AI application and pointed to stronger consumer interaction metrics tied to AI-driven search experiences, alongside ongoing progress in member growth for Homes.com.In the reported quarter, CSGP continued product enhancements at Apartments.com, including expanded natural-language and voice-search capabilities, and highlighted pricing and inventory initiatives at LoopNet designed to broaden advertiser participation. These initiatives collectively reinforce CoStar Group’s strategy of pairing marketplace scale with technology-led diffe...

(Bloomberg) -- While software stocks rebound from the artificial intelligence-driven wipeout earlier this year, Salesforce Inc. hasn’t really benefited. But its earnings after the close Wednesday could pull the company’s shares out of their malaise. Most Read from Bloomberg Singapore Hands Byju's Founder His First Ever Jail Term Iran’s Khamenei Says No Going Back for Middle East Rocked by War Ex-President Biden Sues to Stop DOJ Sharing Interview Tapes Two More Oil Supertankers Exit Hormuz to Help Push Up Flows ‘KPop Demon Hunters’ Studio Draws Tencent Music Investment Salesforce is up 8% since hitting a three-year low on April 10, but the stock still has lost 32% this year. It’s badly underperforming the iShares Expanded Tech-Software Sector exchange-traded fund, which has jumped 25% since hitting its own recent low on April 10 and is down 12% this year. And both are being trounced by the technology-heavy Nasdaq 100 Index’s 19% rise in 2026, largely powered by high-flying chipmakers. Salesforce shares dipped 0.1% on Wednesday afternoon. “It has gone through a very painful period, but there’s a stickiness and staple-like nature to the business that people have underestimated, even though revenue is still growing at a decent pace,” said Brian Kersmanc, portfolio manager at GQG Partners, which owns Salesforce shares. “Now that we’ve had this big washout, I think we’re going to start seeing the merits shine through.” Software stocks are getting some life as encouraging corporate earnings reports indicate that AI may not end up devastating growth like investors had assumed, and in some cases it could be a potential tailwind. That, coupled with valuations that fell to rock-bottom levels, has Wall Street thinking that the industrywide weakness from earlier this year may have gone too far. Salesforce, however, has missed much of the bounce back as it continues to face questions about its prospects. Wall Street’s primary concern is competition from Anthropic and OpenAI weakening demand and pricing power for its customer relationship management software, which for years drove robust growth at high margins. For example, Bank of America last week reinstated coverage of the company with an underperform rating due to “structurally lower growth” and greater competitive risks from AI. “Salesforce remains a deeply entrenched platform, yet we expect a structural reset driven...

The benchmark US stock measures were tracking in the red before the opening bell Monday as investors

Appian Corporation APPN shares have come under pressure following the company’s first-quarter 2026 results released on May 7. APPN stock has plunged 19.2% since the earnings release, underperforming the Zacks Internet - Software industry’s 1.3% decline and lagging the S&P 500 Index and the broader Zacks Computer and Technology sector, both of which gained 0.3% during the same period. APPN Price Performance (Post Q1 Release) Image Source: Zacks Investment Research Appian remains one of the leading players in low-code automation and enterprise process orchestration. The company is also increasingly positioning itself as a serious enterprise AI platform focused on regulated and mission-critical workflows. With improving margins and strong cloud subscription growth, could the recent decline prove attractive for investors willing to look beyond near-term volatility? Despite the strong quarter, investors reacted negatively to Appian’s second-quarter guidance. For the second quarter of 2026, Appian expects total revenues between $191 million and $195 million, implying year-over-year growth of 12-14%. The company also expects adjusted EBITDA between $5 million and $8 million, far below the first quarter’s level. Non-GAAP earnings per share are projected to be between a loss of 2 cents and a profit of 2 cents. The weaker profitability outlook overshadowed the strong first-quarter 2026 performance. Management attributed part of the sequential margin pressure to seasonal marketing and event expenses in the second quarter. Still, the guidance raised concerns about slowing momentum after Appian’s strong start to 2026. Investors also remain cautious about the broader software spending environment, especially for enterprise automation projects that can face longer sales cycles during uncertain macroeconomic conditions. Another challenge is competition. The low-code and AI automation market remains highly competitive, with both large enterprise software vendors and niche automation specialists investing aggressively in AI capabilities. Appian must continue innovating to defend its market position and sustain growth. The company also remains GAAP unprofitable. While margins are improving, Appian continues to carry a sizable accumulated deficit and more than $238 million in total debt. Appian delivered a strong first quarter. Total revenue increased 21% year over year to $202...

Software stocks have been under pressure in 2026 amid fears that artificial intelligence (AI) will reduce demand for enterprise software through a combination of agentic task completion and full-on displacement by generative AI-based apps. ServiceNow (NYSE: NOW) -- a leading software-as-a-service (SaaS) solution for IT service management, HR, customer service, and more -- even admitted that its own AI tools will lead to fewer users over time at its recent analyst day. And despite management sharing first-quarter results that beat its outlook on both the top and bottom lines, investors sold off the stock over fears about the business’s future growth. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Despite the market’s concerns about the company, the stock's long-term outlook remains strong, and it could be a great investment opportunity right now. ServiceNow grew subscription revenue by 19% year over year in the first quarter, prompting management to slightly raise its full-year guidance. But some analysts were concerned about how ServiceNow generates revenue growth. The company’s top line benefited from three acquisitions last quarter: MoveWorks, Veza, and Pyramid. The latter two acquisitions closed in March and had a limited impact on the top line. The company did, however, benefit from MoveWorks throughout the entire quarter, but its impact would’ve been baked into management’s guidance. However, management closed its acquisition of Armis earlier than anticipated in April, which could have led to an increase in full-year guidance. Management dismissed the notion during the earnings call and noted strong organic revenue growth. Remaining performance obligation growth was again strong in the first quarter, climbing 25% year over year. That’s in line with its growth from the first quarter of 2025, and the company now has a backlog of $27.7 billion, of which $12.6 billion will be realized over the next 12 months. At ServiceNow’s analyst day, management outlined its path toward $30 billion in subscription revenue, up from $12.8 billion in 2025, and provided guidance for $15.7 billion in 2026. That growth will be driven by Now Assist, its AI solution, which it expects to reach 30% of annual co...

The S&P 500 Index ($SPX) (SPY) on Friday closed up +0.84%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.35%. June E-mini S&P futures (ESM26) rose +0.79%, and June E-mini Nasdaq futures (NQM26) rose +2.37%. Stock indexes settled higher on Friday, with the S&P 500 and Nasdaq 100 posting new record highs. Chipmaker and AI-infrastructure stocks led the overall market higher on Friday, offsetting concerns about the Iran war. Stronger-than-expected corporate earnings are pushing stocks higher. Weakness in software stocks on Friday weighed on the Dow Jones Industrial Average. As CPUs Steal the Show, AMD Stock Just Got a New Street-High Price Target How Intel Stock Could Be the Biggest Winner from AMD’s Explosive Earnings Win Cathie Wood Dumps More AMD Shares Despite Its Massive 108% Rally. Here's Why. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Stock indexes also found support today on signs of resiliency in the US labor market after April nonfarm payrolls rose more than expected and March nonfarm payrolls were revised upward. Stocks rallied on Friday despite a larger-than-expected decline in US consumer sentiment to a record low. US Apr nonfarm payrolls rose by +115,000, stronger than expectations of +65,000, and Mar nonfarm payrolls were revised upward to +185,000 from the previously reported +178,000. The Apr unemployment rate was unchanged at 4.3%, right on expectations. US Apr average hourly earnings rose +0.2% m/m and +3.6% y/y, weaker than expectations of +0.3% m/m and +3.8% y/y. The University of Michigan’s US May consumer sentiment index fell -1.6 to a record low of 48.2 (data from 1978), weaker than expectations of 49.5. The University of Michigan US May 1-year inflation expectations rate unexpectedly eased to +4.5% from +4.7% in Apr, weaker than expectations of an increase to 4.8%. The May 5-10 year inflation expectations rate unexpectedly eased to +3.4%, weaker than expectations of no change at +3.5%. In the latest developments in the Middle East, Iran's semi-official Tasnim news agency said Iran seized an oil tanker on Friday in the Strait of Hormuz for "attempting to disrupt oil exports and the interests of the Iranian nation." Also, US forces targeted missile and drone launch sites and other milita...

Shares in SAP were rallying on Friday after the German tech company reported better-than-expected first-quarter profit and reiterated its 2026 cloud revenue outlook, with a caveat. The company continues to expect 2026 cloud revenue of between €25.8 billion and €26.2 billion.

ServiceNow NOW delivered first-quarter 2026 earnings of 97 cents per share, beating the Zacks Consensus Estimate by 2.11%. Earnings rose 19.8% year over year. Total revenues were $3.77 billion, edging past the consensus mark by 0.57% and increasing 22.1% year over year. At constant currency (cc), revenues increased 19% year over year to $3.67 billion. Results reflected resilient demand for the company’s subscription model and another quarter of strong profitability and cash generation. ServiceNow, Inc. price-consensus-eps-surprise-chart | ServiceNow, Inc. Quote Subscription revenues were $3.671 billion in the first quarter of fiscal 2026, up 22% year over year, underscoring broad platform demand as customers lean into AI-enabled workflow automation. At cc, subscription revenues increased 19% year over year to $3.57 billion. Management noted that first-quarter subscription revenue growth faced an approximately 75-basis-point (bps) headwind from delayed closings of several large on-premise deals in the Middle East due to regional conflict Professional services and other revenue rose to $99 million, up 18.5% year over year. At cc, Professional services and other revenues increased 15.5% year over year to $96 million. Management highlighted accelerating adoption tied to new AI experiences and platform expansion. The company said it delivered a complete AI-native experience across every commercial tier in April, with governance, security, workflow execution, and data connectivity built in by default. NOW also introduced new “Build Agent Skills” aimed at helping developers deploy agentic capabilities directly on the platform. Backlog metrics continued to point to durable demand. Current remaining performance obligations, which represent contracted revenues expected to be recognized over the next 12 months, were $12.64 billion at the quarter end, up 22.5% year over year. Total remaining performance obligations were $27.7 billion, up 25% year over year. Deal activity remained a notable support. ServiceNow reported 16 transactions above $5 million in net new annual contract value (ACV) in the quarter, nearly 80% higher year over year. NOW finished the period with 630 customers generating more than $5 million in ACV, up about 22% from the prior year. The company also called out strong enterprise traction for Now Assist, noting that the number of customers spending mor...

Shares of ServiceNow, Inc. NOW plunged sharply on April 23, extending losses after first-quarter 2026 earnings failed to excite investors already wary of mounting global risks. The stock plunged as much as 17.8% during the session, after falling about 12% in pre-market trading, reflecting a swift negative reaction despite broadly in-line results. The company posted first-quarter earnings of 97 cents per share, beating the Zacks Consensus Estimate by 2.11%. Earnings rose 19.8% year over year. Total revenues were $3.77 billion, beating the consensus mark by 0.57% and increasing 22.1% year over year. However, this was not enough to reassure investors in a market increasingly focused on forward-looking signals. Management flagged that the ongoing conflict in the Middle East disrupted its ability to close deals in the first quarter, a trend that could persist in the coming months. ServiceNow’s business model, which depends heavily on large enterprise contracts, is particularly sensitive to delays in deal closures. Heightened geopolitical uncertainty has made corporations more cautious, slowing decision-making on significant technology investments. This dynamic has raised concerns about the durability of near-term growth across the enterprise software sector. Despite the near-term challenges, the company highlighted strong traction in artificial intelligence (AI). The number of customers spending more than $1 million on its AI product suite, Now Assist, surged 130% year over year in the first quarter, underscoring robust demand for AI-driven workflow solutions. This momentum was overshadowed by macroeconomic concerns and the lack of upside in the quarterly results. NOW, which carries a Zacks Rank #3 (Hold), is part of the Zacks Computers - IT Services industry. NOW’s shares have plummeted 44.6% year to date compared with a 16.6% fall for the industry. In the same period, two of its peers, Leidos Holdings, Inc. LDOS and DXC Technology Company DXC, have lost 18.2% and 18.7%, respectively. While DXC has a #2 (Buy), LDOS carries a #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock had already been under pressure, entering the session down roughly one-third for the year amid broader fears that rapid advancements in AI could disrupt traditional software models. The latest sell-off reinforces a shifting narrative on Wall...

Investors appear to be treating any results that aren’t perfect as a confirmation of their worst fears about AI disruption.