ServiceNow (NYSE:NOW) Coverage Initiated at Barclays

Equities research analysts at Barclays started coverage on shares of ServiceNow (NYSE:NOW) in a report released on Thursday, Marketbeat reports. The brokerage set an “overweight” rating and a $132.00 price target on the information technology services provider’s stock. Barclays‘s price objective would indicate a potential upside of 55.05% from the company’s previous close.

Other equities analysts have also recently issued reports about the stock. KeyCorp set a $85.00 price objective on shares of ServiceNow and gave the company an “underweight” rating in a research note on Thursday. DA Davidson dropped their price objective on shares of ServiceNow from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Thursday. Oppenheimer set a $130.00 price objective on shares of ServiceNow and gave the company an “outperform” rating in a research note on Wednesday, April 15th. Argus raised shares of ServiceNow to a “strong-buy” rating in a research note on Wednesday, February 4th. Finally, Capital One Financial dropped their price objective on shares of ServiceNow from $158.00 to $113.00 and set an “overweight” rating on the stock in a research note on Thursday, April 16th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, ServiceNow currently has an average rating of “Moderate Buy” and a consensus target price of $150.18.

ServiceNow Stock Performance

NOW stock traded down $17.94 on Thursday, hitting $85.13. The company’s stock had a trading volume of 48,638,550 shares, compared to its average volume of 20,425,287. The firm has a 50 day moving average of $105.55 and a two-hundred day moving average of $138.83. ServiceNow has a 1 year low of $81.24 and a 1 year high of $211.48. The stock has a market cap of $88.21 billion, a price-to-earnings ratio of 51.04, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the prior year, the firm earned $4.04 EPS. ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. Equities analysts predict that ServiceNow will post 2.49 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In other news, insider Paul Fipps sold 9,641 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the transaction, the insider directly owned 11,757 shares of the company’s stock, valued at $1,245,419.01. This represents a 45.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 16,237 shares of company stock valued at $1,697,162 in the last ninety days. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently made changes to their positions in NOW. Vanguard Group Inc. grew its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp grew its stake in ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after acquiring an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC grew its stake in ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley grew its stake in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after acquiring an additional 17,514,679 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 results beat revenue expectations and showed AI-driven growth; management raised annual subscription revenue guidance, underscoring demand for Now Assist and other AI products. ServiceNow Reports First Quarter 2026 Financial Results
• Positive Sentiment: CEO Bill McDermott publicly reiterated strong AI product sales and confidence that AI will drive durable revenue—an important narrative that supports longer‑term growth expectations. Fortune: Investors continue to punish ServiceNow despite strong earnings and CEO forecast
• Positive Sentiment: ServiceNow completed the Armis acquisition, expanding security, OT/IoT and cyber‑exposure capabilities—strategic for cross‑sell and AI/security use cases. (Longer‑term product/market benefit.) InsiderMonkey: ServiceNow completes Armis acquisition
• Neutral Sentiment: Some sell‑side firms still maintain Outperform/Buy ratings (and a few raised targets, e.g., Bernstein), reflecting mixed analyst views—bulls cite AI adoption, bears focus on near‑term execution risks. MarketScreener: Bernstein raises price target
• Negative Sentiment: ServiceNow warned the Armis deal will pressure margins (~75 bps full‑year; ~125 bps in Q2) and acquisition integration costs weigh on near‑term profitability—investors reacted negatively to the margin hit. WSJ: Armis deal will weigh on margins
• Negative Sentiment: Management flagged deal delays in the Middle East tied to the Iran conflict (~75 bps headwind to subscription revenue in Q1) — a tangible, near‑term revenue drag that spooked investors. Yahoo Finance: Stock tumbles as war in Iran impacts sales growth
• Negative Sentiment: Wall of analyst price‑target cuts and downward adjustments across major banks amplified selling pressure; many firms trimmed targets despite keeping Buy/Outperform ratings. Benzinga: Analysts cut forecasts after Q1
• Negative Sentiment: Sector‑wide AI disruption fears and rising short interest among hedge funds intensified downside volatility; traders treated the quarter as proof of near‑term execution risk despite longer‑term AI thesis. Reuters: ServiceNow draws hedge fund shorts

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.