ServiceNow, Inc. (NYSE:NOW – Get Free Report) shares dropped 2.3% during trading on Wednesday . The company traded as low as $93.42 and last traded at $93.7350. Approximately 16,908,844 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 24,174,344 shares. The stock had previously closed at $95.94.
Key Headlines Impacting ServiceNow
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: Oppenheimer reiterated an Outperform rating and $130 price target on ServiceNow after speaking with management, saying it sees improving second-half 2026 prospects and a possible reacceleration in business momentum. Oppenheimer Reaffirms Bullish Outlook on ServiceNow (NOW) Amid AI Growth and Cognizant Partnership
- Positive Sentiment: HCLTech expanded its collaboration with Google Cloud and ServiceNow to build and scale enterprise AI agents, reinforcing ServiceNow’s role in enterprise AI workflows. HCLTech Deepens Google Cloud–ServiceNow Alliance to Scale Enterprise AI Agents
- Positive Sentiment: Market commentary points to a rotation out of chips and back into software, with ServiceNow trading near the top of the S&P 500 software group as investors reassess the AI narrative for software names. The Market Rotation Is On. ServiceNow, Workday, and AppLovin Rise as Software Tops Chips.
- Neutral Sentiment: Several articles compared ServiceNow’s revenue trajectory and valuation to peers, with some commentary suggesting the stock may be trading at a discount relative to its business quality, but these pieces were mostly analytical rather than new company-specific catalysts. ServiceNow: An Excellent Business Trading at a Discount
- Negative Sentiment: Broader tech weakness and the AI selloff have weighed on sentiment across software and AI-linked names, helping explain why ServiceNow has also seen pressure despite the upbeat analyst and partnership news. The AI Selloff Is Getting Brutal: 10 Tech Giants Already Deep in Bear Market Territory
Analysts Set New Price Targets
A number of equities analysts have issued reports on NOW shares. Argus cut their target price on ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Needham & Company LLC reissued a “buy” rating and set a $115.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. BNP Paribas Exane upgraded shares of ServiceNow from a “neutral” rating to an “outperform” rating and set a $140.00 price target for the company in a research note on Monday, March 16th. Wall Street Zen cut shares of ServiceNow from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $135.00 price objective (down from $175.00) on shares of ServiceNow in a research note on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $142.17.
ServiceNow Price Performance
The company has a 50 day moving average of $100.01 and a 200-day moving average of $115.39. The stock has a market capitalization of $100.25 billion, a P/E ratio of 57.88, a PEG ratio of 1.56 and a beta of 0.94. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.
ServiceNow (NYSE:NOW – Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm’s revenue was up 22.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.81 earnings per share. Sell-side analysts predict that ServiceNow, Inc. will post 2.34 EPS for the current year.
Insider Buying and Selling at ServiceNow
In related news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the transaction, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 28,071 shares of company stock worth $2,529,956 in the last quarter. 0.34% of the stock is currently owned by corporate insiders.
Hedge Funds Weigh In On ServiceNow
Several hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC increased its stake in ServiceNow by 1.1% during the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after buying an additional 30 shares during the period. Sivia Capital Partners LLC lifted its stake in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after acquiring an additional 34 shares during the period. United Bank boosted its holdings in shares of ServiceNow by 15.5% in the second quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock valued at $1,562,000 after acquiring an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. boosted its holdings in shares of ServiceNow by 2.2% in the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock valued at $1,976,000 after acquiring an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC increased its stake in shares of ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after acquiring an additional 609 shares during the period. Institutional investors and hedge funds 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.
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