ServiceNow (NYSE:NOW) Trading Up 3.6% – Here’s What Happened

Posted by Brenda Bartman on Aug 4th, 2026

ServiceNow, Inc. (NYSE:NOW – Get Free Report)’s share price shot up 3.6% during mid-day trading on Tuesday . The company traded as high as $118.33 and last traded at $118.25. 18,744,981 shares changed hands during trading, a decline of 22% from the average session volume of 24,155,936 shares. The stock had previously closed at $114.19.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: AI growth is becoming a significant revenue driver. ServiceNow’s AI portfolio surpassed $1 billion in annual contract value, while second-quarter revenue reached approximately $3.99 billion, up 24% year over year. Investors view the combination of strong growth and expanding AI adoption as supporting the long-term bull case. ServiceNow Is Up 12.6% After Layoffs And AI ACV Tops $1 Billion
Positive Sentiment: Workforce restructuring is being interpreted as margin-positive. ServiceNow reportedly plans to eliminate up to 1,000 positions, including nearly 300 jobs in Silicon Valley, while keeping overall headcount roughly flat and shifting employees toward AI-focused roles. The cost controls helped fuel a favorable stock reaction because they could improve operating leverage without signaling a broad reduction in hiring. Software company soars amid plans to cut 1,000 jobs
Positive Sentiment: ServiceNow expanded its cybersecurity opportunity. The company introduced six autonomous security products built on its Armis and Veza acquisitions, presenting “Autonomous Security” as an integrated offering that combines asset intelligence, identity and workflow automation. Analysts and investors see an advantage in ServiceNow’s ability to connect security tools with enterprise operations. ServiceNow debuts six autonomous security products
Positive Sentiment: New customer demand supports the strategy. A major multi-hospital system selected 3CLogic’s voice-AI solution for ServiceNow to modernize IT service operations, providing another example of adoption within large enterprises. Major Multi-Hospital System Selects 3CLogic to Modernize IT Service Operations
Neutral Sentiment: Simon Mouyal was named chief marketing officer. The appointment may help communicate ServiceNow’s AI and security strategy, but no immediate financial impact was provided. ServiceNow Names Simon Mouyal Chief Marketing Officer
Neutral Sentiment: Brokerage sentiment remains constructive, with ServiceNow receiving a consensus “Moderate Buy” rating, while commentary argues beaten-down software stocks offer value despite investor preference for hyperscalers.

Analysts Set New Price Targets

A number of brokerages recently issued reports on NOW. CLSA started coverage on ServiceNow in a report on Monday, July 20th. They issued an “underperform” rating and a $72.00 target price on the stock. Cantor Fitzgerald boosted their target price on ServiceNow from $122.00 to $141.00 and gave the stock an “overweight” rating in a research note on Monday, July 20th. HSBC cut their price target on shares of ServiceNow from $226.00 to $171.00 and set a “buy” rating on the stock in a report on Thursday, April 16th. BMO Capital Markets raised their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Finally, Piper Sandler restated an “overweight” rating and issued a $140.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and a consensus price target of $143.39.

View Our Latest Report on NOW

ServiceNow Stock Up 3.6%

The stock has a 50-day moving average of $105.88 and a 200-day moving average of $106.01. The company has a market cap of $122.27 billion, a PE ratio of 73.91, a P/E/G ratio of 1.96 and a beta of 0.96. 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 released its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.81 EPS. Sell-side analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 19,144 shares of company stock worth $1,730,097. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the last quarter. State Street Corp increased its position in ServiceNow by 406.6% during 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 buying an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of ServiceNow by 371.0% during the fourth 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 in the last quarter. Geode Capital Management LLC raised its holdings in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley lifted its position 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 in the last quarter. Institutional investors own 87.18% of the company’s stock.

About ServiceNow

(Get Free Report)

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.