ServiceNow (NYSE:NOW) Trading 3.5% Higher – What’s Next?

ServiceNow, Inc. (NYSE:NOW) shares were up 3.5% on Friday . The stock traded as high as $133.85 and last traded at $133.09. Approximately 16,404,281 shares were traded during mid-day trading, an increase of 30% from the average daily volume of 12,654,275 shares. The stock had previously closed at $128.56.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow announced a strategic tie-up with OpenAI to run agentic AI across enterprise workflows — a clear signal that ServiceNow is embedding advanced generative AI into its platform, which supports upside to future product adoption and revenue if enterprise customers deploy these agents. ServiceNow Taps OpenAI to Run Agentic AI Across Enterprise Workflows
• Positive Sentiment: Coverage highlights ServiceNow positioning itself as the “control layer” for enterprise AI execution — framing the company as essential infrastructure for deploying and orchestrating AI at scale, which supports a longer-term revenue narrative. ServiceNow positions itself as the control layer for enterprise AI execution
• Positive Sentiment: ServiceNow expanded partner and channel programs (Build, global partner enhancements, channel AI emphasis) to accelerate AI-agent innovation and go-to-market — these moves can boost ecosystem-led sales and faster customer implementations. ServiceNow Beefs Up Channel Program With AI Emphasis
• Positive Sentiment: Partner wins and integrations (Action1 CMDB sync/patch management; CoreX SPM play) show continued partner traction that can drive incremental deployments. These tactical collaborations support near-term customer momentum. Action1 Partners with ServiceNow to Deliver Real-Time CMDB Synchronization and Autonomous Patch Management
• Positive Sentiment: BTIG reaffirmed a “buy” rating with a $200 target, reiterating bullish views on traction (Now Assist, AI features) — supportive analyst backing that can attract buyers. ServiceNow continues to see strong traction with Now Assist says BTIG
• Neutral Sentiment: Market/press notes and attention pieces explain the intraday move and provide context on volume and recent price action — useful for sentiment but not new fundamental data. ServiceNow (NOW) Stock Is Up, What You Need To Know
• Neutral Sentiment: Zacks pieces summarize Wall Street estimates and the range of analyst views ahead of/after Q4 — these previews set expectations but outcomes will hinge on the actual quarterly report. Curious about ServiceNow (NOW) Q4 Performance? Explore Wall Street Estimates for Key Metrics
• Negative Sentiment: Jefferies cut its price target from $230 to $175 (still a buy) — the lower target reduces some upside expectations and reflects more conservative near-term assumptions. Jefferies price target cut
• Negative Sentiment: Citigroup also trimmed its target (from $250.60 to $235) while keeping a buy — multiple target cuts suggest analysts are reassessing near-term growth or margin assumptions. Citigroup price target cut
• Negative Sentiment: Mizuho lowered expectations for NOW — another cautionary datapoint that may pressure sentiment until ServiceNow reports definitive quarterly results. Mizuho Has Lowered Expectations for ServiceNow

Analyst Ratings Changes

NOW has been the subject of a number of research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of ServiceNow in a research note on Wednesday, October 8th. Citigroup reduced their target price on ServiceNow from $250.60 to $235.00 and set a “buy” rating on the stock in a report on Thursday. Arete Research set a $200.00 target price on ServiceNow in a research report on Tuesday, January 6th. Capital One Financial lowered their price target on ServiceNow from $188.00 to $161.00 and set an “overweight” rating for the company in a report on Friday, January 16th. Finally, KeyCorp restated an “underweight” rating on shares of ServiceNow in a research note on Friday, January 9th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, ServiceNow has an average rating of “Moderate Buy” and a consensus price target of $209.07.

ServiceNow Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06. The stock has a market capitalization of $138.20 billion, a price-to-earnings ratio of 80.47, a price-to-earnings-growth ratio of 2.16 and a beta of 0.98. The company has a 50-day simple moving average of $154.23 and a two-hundred day simple moving average of $173.83.

Insiders Place Their Bets

In related news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $161.60, for a total value of $242,400.00. Following the sale, the director directly owned 47,930 shares in the company, valued at $7,745,488. This trade represents a 3.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Paul Fipps sold 1,525 shares of the company’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total transaction of $249,352.75. Following the completion of the transaction, the insider owned 2,705 shares of the company’s stock, valued at approximately $442,294.55. This trade represents a 36.05% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 15,310 shares of company stock worth $2,533,585. 0.34% of the stock is owned by company insiders.

Institutional Trading of ServiceNow

Hedge funds have recently added to or reduced their stakes in the business. Klingman & Associates LLC increased its holdings in shares of ServiceNow by 22.2% in the 2nd quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock valued at $548,000 after purchasing an additional 97 shares during the period. Ethic Inc. grew its position in ServiceNow by 1.6% during the second quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock valued at $26,067,000 after purchasing an additional 397 shares in the last quarter. Howard Capital Management Inc. grew its position in ServiceNow by 32.0% during the second quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock valued at $1,506,000 after purchasing an additional 355 shares in the last quarter. Chicago Capital LLC increased its stake in ServiceNow by 1.0% in the 2nd quarter. Chicago Capital LLC now owns 78,951 shares of the information technology services provider’s stock valued at $81,168,000 after buying an additional 744 shares during the period. Finally, ASR Vermogensbeheer N.V. lifted its position in ServiceNow by 128.8% in the 2nd quarter. ASR Vermogensbeheer N.V. now owns 55,394 shares of the information technology services provider’s stock worth $56,944,000 after buying an additional 31,181 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

About ServiceNow

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.