ServiceNow (NYSE:NOW) Trading 6.3% Higher Following Analyst Upgrade

ServiceNow, Inc. (NYSE:NOW) traded up 6.3% during trading on Friday after Sanford C. Bernstein raised their price target on the stock from $219.00 to $226.00. Sanford C. Bernstein currently has an outperform rating on the stock. ServiceNow traded as high as $90.39 and last traded at $90.0860. 38,728,236 shares changed hands during trading, an increase of 83% from the average session volume of 21,139,188 shares. The stock had previously closed at $84.78.

NOW has been the subject of several other research reports. Citigroup lowered their price target on shares of ServiceNow from $177.00 to $154.00 and set a “buy” rating for the company in a report on Thursday. DA Davidson lowered their price target on shares of ServiceNow from $220.00 to $190.00 and set a “buy” rating for the company in a report on Thursday. JPMorgan Chase & Co. lowered their price target on shares of ServiceNow from $195.00 to $145.00 and set an “overweight” rating for the company in a report on Thursday. Piper Sandler lowered their price target on shares of ServiceNow from $200.00 to $140.00 and set an “overweight” rating for the company in a report on Thursday. Finally, Argus upgraded shares of ServiceNow to a “strong-buy” rating in a report on Wednesday, February 4th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and an average price target of $146.65.

Insider Activity

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 value of $1,021,271.13. Following the completion of the transaction, the insider owned 11,757 shares in the company, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the transaction, the insider owned 26,314 shares of the company’s stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 16,237 shares of company stock worth $1,697,162. Corporate insiders own 0.34% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 beat and upgraded outlook — ServiceNow beat revenue and EPS expectations and raised its annual subscription-revenue outlook, with management pointing to accelerating AI product demand. ServiceNow boosts annual subscription revenue outlook
• Positive Sentiment: Corporate wins & partnerships support AI story — ServiceNow highlighted customer traction (e.g., TridentCare) and deepened a Google Cloud partnership to deliver AI agents across enterprises, supporting the company’s long-term AI monetization thesis. ServiceNow and Google Cloud unite AI agents
• Positive Sentiment: Armis acquisition expands security footprint — ServiceNow closed the $7.75B Armis deal, adding cyber-exposure capabilities that complement its platform even though integration costs will pressure margins initially. ServiceNow completes Armis acquisition
• Neutral Sentiment: CEO frames AI as productivity lever — Management said AI will boost productivity (limit headcount growth) and that AI revenue is scaling, which supports the strategy but may not soothe near-term investors focused on margins. AI will boost productivity
• Neutral Sentiment: Broader AI disruption debate — Industry coverage notes both AI tailwinds and structural risks (including job displacement), a backdrop that is increasing volatility for software names. Whether AI is killing tech jobs
• Negative Sentiment: Margin headwinds called out — ServiceNow said the Armis acquisition and related costs will create a multi-quarter margin headwind, a primary driver of investor concern. Armis deal will weigh on margins
• Negative Sentiment: Geopolitical deal delays hitting subscription growth — Management flagged that conflict in the Middle East delayed several large deal closings (≈75 bps headwind to subscription growth), which pressured near-term guidance. ServiceNow flags Middle East deal delays
• Negative Sentiment: Analyst price-target cuts and sector contagion amplified the drop — Multiple firms trimmed targets and several software peers fell as markets re-priced AI-risk and near-term growth/margin uncertainty. ServiceNow’s stock sinks, taking sector down

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. IAG Wealth Partners LLC raised its position in ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its position in ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 128 shares during the last quarter. Millstone Evans Group LLC raised its position in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its position in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC purchased a new stake in ServiceNow in the 4th quarter valued at $25,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Stock Performance

The firm’s 50-day moving average is $105.18 and its 200 day moving average is $138.45. The stock has a market cap of $93.34 billion, a PE ratio of 53.69, a P/E/G ratio of 1.73 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00.

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 12.59% and a return on equity of 18.16%. 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 $0.81 EPS. ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. As a group, research analysts anticipate that ServiceNow, Inc. will post 2.49 EPS for the current year.

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.