New York, February 24, 2026, 14:36 EST — Regular session
- NOW shares clawed back roughly 2% in afternoon trading, rebounding from Monday’s steep sector-driven drop.
- AI disruption jitters continue to weigh on U.S. software stocks this month, with traders still processing the fallout.
- Fresh off the wire: the company rolled out new announcements, with an AI partnership alongside TCS thrown into the blend.
ServiceNow climbed 2.1% to $102.95 Tuesday afternoon, trading as low as $100.53 and topping out at $105.68 during the day. The enterprise software company’s market cap sat near $108 billion, per Kraken pricing data. 1
After plunging 3.33% to $100.80 on Monday—an unusually active trading session—Salesforce slipped 3.78%, Oracle lost 4.57%, and Synopsys shed 4.35%. All three took hits alongside the broader software sector and the market as a whole, according to MarketWatch data. 2
Here’s the issue: subscription software stocks—think SaaS, those recurring-revenue cloud tools—are getting marked down as AI changes the game on both customer demand and pricing power. Sentiment hasn’t exactly been stable, either. Fresh U.S. tariffs hit on Tuesday, injecting more uncertainty for risk assets. 3
Jitters are flaring up after a Citrini Research report went viral, laying out a 2028 “dystopia” scenario with unemployment spiking to 10.2% amid AI-fueled job cuts, according to Reuters. Nick Ferres, CIO at Vantage Point Asset Management, told investors to “take it seriously, not literally.” 4
Tata Consultancy Services and ServiceNow announced a multi-year deal Monday aimed at getting enterprises to ramp up their AI use. TCS will develop industry-focused solutions using ServiceNow’s platform, the companies said. “The goal is to move beyond isolated AI experiments,” ServiceNow executive Amit Zavery said. 5
ServiceNow rolled out fresh healthcare-focused product news, unveiling its “Healthcare Operations” workflow tool at the ViVE 2026 conference. Built to integrate directly into electronic medical records, the product is meant to streamline operational requests. Children’s Health executive Jonathan Patrick said, “We plan to use AI and automation to give them time back.” 6
Analysts are busy sizing up which software companies have staying power and which could get hit hardest if AI ends up making it simpler for customers to jump ship. Jefferies’ Brent Thill pointed to Salesforce as “best-positioned among apps vendors to deliver on AI agents” — referring to software that can act independently, not just spit out responses. 7
Paul Fipps, an officer, signaled plans to sell 3,696 shares via Fidelity, according to a Form 144 filing. The proposed sale carries an approximate market value of $376,142. The same disclosure notes a previous sale: 9,641 shares were sold on Feb. 18. (Form 144 filings, required under SEC Rule 144, typically indicate intent to sell restricted or control stock.) 8
Software shares bounced back Tuesday, recovering some ground after Monday’s slump. Sector news tied to AI tools and partnerships gave the group a lift. The U.S. software ETF IGV rallied 2.4%, according to Reuters, with a Stock Trader Network strategist labeling the sector “massively oversold.” 9
The bear scenario is pretty clear: a fresh round of AI-fueled “fear trades” or tougher negotiations from customers on renewals and pricing could knock high-multiple software names down in a hurry. As a Reuters Breakingviews piece pointed out, the focus has shifted—now it’s less about productivity and more about whether AI fundamentally alters how software companies make money. 10
Traders now have their eyes on Nvidia’s earnings, expected Wednesday—a crucial moment for the market’s AI story. Any new tariff news could also shake up risk sentiment. Lately, that mix has sent software stocks swinging sharply, even if corporate headlines are sparse. 11
