ServiceNow Nears Golden Cross After Q2 Revenue Jump

ServiceNow shares rose to about $138, roughly 70% above this year’s low of $81.23, as the stock approaches a golden cross when its 50-day and 200-day exponential moving averages converge. The company reported second-quarter revenue of $3.9 billion, a 24% increase from the same period a year earlier.

Remaining performance obligations (RPO) rose 21% year over year to $13.2 billion. The ServiceNow AI product exceeded $1 billion in annual contract value, and the company’s contract renewal rate increased to 98% from 97% in the prior quarter.

Management reported contributions from recent acquisitions. ServiceNow bought Armis for $7.75 billion and Moveworks for $2.85 billion, and Armis helped drive revenue in the quarter.

Analysts expect third-quarter revenue near $4.1 billion, about 20% higher year over year, and project full-year revenue around $16.2 billion versus $13 billion last year. Third-quarter earnings per share are forecast at about $1.03, up from $0.96.

Technical indicators show the spread between the 50-day and 200-day EMAs narrowing. The Relative Strength Index and the MACD have trended higher. The stock is testing resistance near $138, with a nearer-term reference around $150 and a longer-term reference at the July 2025 high near $210.

The rally follows a decline from a January 2023 peak near $240 to a low of $81.23 earlier this year. Market participants had flagged risks that emerging AI tools could automate workflows ServiceNow addresses and had questioned the scale of large acquisitions.

Recent results from other enterprise software companies showing continued demand for cloud and software services coincided with renewed buying across the sector.