ServiceNow Q1 2026 earnings preview

What happened: ServiceNow, a leading cloud-based software provider, has seen its share price plummet by over 30% year-to-date, driven by fears of AI making SaaS companies obsolete. Despite this, analysts remain bullish on the company's AI integration and platform strengths. Benchmark initiated coverage with a Buy rating and a $125 price target, while Stifel maintained a Buy rating despite turning cautious. Redburn lowered its price target to $215 but kept a Buy rating. Jim Cramer, however, discussed ServiceNow's 30% year-to-date decline.

Market impact: The "SaaSpocalypse" fears have led to a sell-off in the SaaS sector, with ServiceNow being one of the worst performers. This has affected investor sentiment and valuation repricing. Meanwhile, Qnity Electronics has taken over the #19 spot from ServiceNow in analyst recommendations.

What to watch next: ServiceNow's Q1 2026 earnings, scheduled for April 27, will provide insights into the company's performance and AI integration progress. Additionally, any further analyst rating changes or price target adjustments will indicate market sentiment shifts.