ServiceNow (NYSE:NOW) Stock Falls 1.4% – What’s Next?

Posted by George Bondi on Oct 13th, 2026

ServiceNow, Inc. (NYSE:NOW – Get Free Report) shares dropped 1.4% on Tuesday. The company traded as low as $138.16 and last traded at $138.3340. Approximately 13,133,084 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 21,688,852 shares. The stock had previously closed at $140.32.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: Analyst price targets point to further upside. RBC raised its target from $130 to $176 and maintained an “outperform” rating, while BTIG reaffirmed its “buy” rating with a $170 target. Oppenheimer also raised its target, citing favorable channel checks and expectations for a strong third-quarter business outcome. ServiceNow Stock Moves Higher
Positive Sentiment: AI is strengthening the long-term growth outlook. Analysts expect revenue growth to accelerate into fiscal 2027 as AI, security and usage-based products contribute more meaningfully. ServiceNow’s AI business has also reached a milestone that could support a new billion-dollar growth engine if management meets its year-end target. Analyst Calls ServiceNow a Top Software Pick
Positive Sentiment: Enterprise demand remains a key catalyst. Analysts have cited strong demand for enterprise AI and potential federal spending growth. Sakon’s launch of an AI companion on ServiceNow also provides evidence of expanding platform use cases. ServiceNow Gets Wall Street’s Vote of Confidence
Neutral Sentiment: AI-agent startup Decagon has hired an investment bank and held preliminary acquisition discussions with ServiceNow and other potential buyers. The talks could expand ServiceNow’s AI capabilities, but no transaction has been announced. Decagon M&A Talks
Negative Sentiment: Profit growth and valuation remain concerns. Although quarterly revenue increased 24% year over year and exceeded expectations, earnings declined as ServiceNow invested more heavily in sales and engineering. With a high earnings multiple, investors may demand evidence that AI spending produces faster growth and improving margins. ServiceNow Valuation and AI Workflow Push

Analysts Set New Price Targets

NOW has been the subject of several research reports. Citigroup reissued a “market outperform” rating on shares of ServiceNow in a report on Tuesday, October 6th. Sanford C. Bernstein reiterated an “outperform” rating on shares of ServiceNow in a research note on Wednesday, September 9th. Jefferies Financial Group reiterated a “buy” rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. CLSA started coverage on ServiceNow in a research report on Monday, July 20th. They set an “underperform” rating and a $72.00 target price on the stock. Finally, Barclays reaffirmed an “overweight” rating and issued a $160.00 price target (up from $134.00) on shares of ServiceNow in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and a consensus price target of $149.20.

View Our Latest Report on NOW

ServiceNow Stock Down 1.4%

The company has a market cap of $143.04 billion, a PE ratio of 86.46, a P/E/G ratio of 2.59 and a beta of 0.99. The stock has a 50-day moving average of $133.38 and a 200-day moving average of $112.62. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The company’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same quarter last year, the company posted $0.81 EPS. Sell-side analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the sale, the insider directly owned 30,042 shares of the company’s stock, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director directly owned 43,990 shares in the company, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 14,081 shares of company stock valued at $1,937,904 in the last quarter. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently modified their holdings of NOW. A. D. Beadell Investment Counsel Inc. boosted its stake in shares of ServiceNow by 2.9% in the 2nd quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider’s stock valued at $279,000 after purchasing an additional 80 shares in the last quarter. Atwood & Palmer Inc. raised its position in ServiceNow by 20.0% in the 2nd quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider’s stock worth $60,000 after purchasing an additional 100 shares during the period. Capital Advisors Ltd. LLC raised its position in ServiceNow by 25.2% in the 1st quarter. Capital Advisors Ltd. LLC now owns 516 shares of the information technology services provider’s stock worth $54,000 after purchasing an additional 104 shares during the period. Cornerstone Financial Management LLC lifted its stake in ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 107 shares during the last quarter. Finally, Symphony Financial Ltd. Co. lifted its stake in ServiceNow by 1.5% in the second quarter. Symphony Financial Ltd. Co. now owns 7,584 shares of the information technology services provider’s stock worth $757,000 after purchasing an additional 115 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Company Profile

(Get Free Report)

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.