Evercore Cuts ServiceNow (NYSE:NOW) Price Target to $140.00

ServiceNow (NYSE:NOW) had its target price lowered by equities researchers at Evercore from $175.00 to $140.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage currently has an “outperform” rating on the information technology services provider’s stock. Evercore’s price target suggests a potential upside of 61.47% from the stock’s current price.

Several other equities analysts have also weighed in on the stock. TD Cowen cut their price objective on shares of ServiceNow from $185.00 to $140.00 and set a “buy” rating on the stock in a research report on Thursday, April 16th. DA Davidson reduced their price objective on shares of ServiceNow from $220.00 to $190.00 and set a “buy” rating for the company in a research note on Thursday. Royal Bank Of Canada dropped their price target on shares of ServiceNow from $150.00 to $121.00 and set an “outperform” rating on the stock in a research report on Monday, April 13th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of ServiceNow in a report on Thursday, January 29th. Finally, Morgan Stanley lowered their target price on shares of ServiceNow from $210.00 to $180.00 and set an “overweight” rating on the stock in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $155.86.

ServiceNow Stock Down 15.9%

NOW stock traded down $16.36 during midday trading on Thursday, reaching $86.71. The company had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. The company has a 50 day moving average of $105.55 and a two-hundred day moving average of $138.83. 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 has a 1 year low of $81.24 and a 1 year high of $211.48. The company has a market capitalization of $89.84 billion, a P/E ratio of 52.17, a PEG ratio of 1.68 and a beta of 1.01.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same period last year, the company earned $4.04 earnings per share. ServiceNow’s quarterly revenue was up 22.1% compared to the same quarter last year. On average, equities research analysts expect that ServiceNow will post 2.49 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider owned 26,314 shares of the company’s stock, valued at $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction dated 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 owned 46,430 shares of the company’s stock, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 16,237 shares of company stock worth $1,697,162. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of ServiceNow by 404.5% during 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 buying an additional 81,752,460 shares in the last quarter. State Street Corp lifted its stake in shares of ServiceNow by 406.6% during the fourth 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 period. Price T Rowe Associates Inc. MD grew its position in shares of ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after buying an additional 25,517,218 shares during the period. Geode Capital Management LLC grew its holdings in ServiceNow by 404.8% during the 4th 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 acquiring an additional 18,854,775 shares during the period. Finally, Morgan Stanley increased its holdings in ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

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.