ServiceNow (NYSE:NOW) Shares Down 5.7% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s stock price fell 5.7% during mid-day trading on Tuesday . The company traded as low as $102.61 and last traded at $104.8960. 22,846,464 shares traded hands during trading, a decline of 4% from the average session volume of 23,749,275 shares. The stock had previously closed at $111.26.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: UBS raised its price target on ServiceNow to $115 from $100, keeping a neutral rating and signaling roughly 10% upside from the recent share price. Article: ServiceNow (NOW) PT Raised to $115 at UBS as Demand Trends Appear Stable
• Positive Sentiment: ServiceNow appears to be strengthening its AI monetization strategy, with reports that it is raising Now Assist AI contract targets and positioning AI as a premium add-on across its workflow products. Article: ServiceNow (NOW) Is Raising Its AI Targets As Investors Shift Toward Software
• Positive Sentiment: New ecosystem activity around the ServiceNow platform, including a ServiceNow-native FedRAMP 20x compliance app and a new GSA enterprise IT award tied to AI-enabled modernization, highlights continued partner demand for the platform. Article: C1Secure Launches SmartRAMP 20x, a ServiceNow-Native Platform Built for the FedRAMP 20x Model
• Neutral Sentiment: Several commentary pieces argued that ServiceNow’s AI opportunity could be a long-term positive, but another article noted the stock is not the cheapest software name and may face valuation pressure. Article: ServiceNow: AI Is An Opportunity, Not A Threat
• Neutral Sentiment: Analysts and market watchers have also framed the move as part of a broader rotation in software stocks rather than a change in ServiceNow’s fundamental outlook. Article: NOW, ACN: Why Are ServiceNow and Accenture Stocks Falling Today, 7/14/26?
• Negative Sentiment: IBM’s weaker-than-expected preliminary second-quarter results and revenue warning triggered a selloff across tech and enterprise software shares, dragging ServiceNow lower with the sector. Article: IBM Plunge Triggers Tech Stock Selloff After Revenue Miss Warning
• Negative Sentiment: Some market commentary also pointed to margin pressure from acquisitions as a concern versus peers, which could weigh on sentiment toward NOW. Article: ServiceNow vs. Atlassian: Which Cloud Software Stock Has an Edge?

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. BTIG Research reiterated a “buy” rating and set a $150.00 price target on shares of ServiceNow in a research report on Monday, June 29th. Wolfe Research set a $125.00 price objective on shares of ServiceNow in a research report on Thursday, April 23rd. Citizens Jmp reaffirmed a “market outperform” rating and set a $157.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Guggenheim raised shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 target price on the stock in a report on Wednesday, July 1st. Finally, FBN Securities reduced their price target on shares of ServiceNow from $160.00 to $120.00 in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $140.60.

ServiceNow Stock Performance

The firm has a market cap of $108.15 billion, a PE ratio of 62.51, a price-to-earnings-growth ratio of 1.79 and a beta of 0.96. The company has a 50 day simple moving average of $102.95 and a 200-day simple moving average of $110.65. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business’s quarterly revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.81 EPS. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 2.34 EPS for the current year.

Insider Buying and Selling

In related news, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction that occurred on 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 in the company, valued at $1,189,212.72. This trade represents a 7.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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, insider Jacqueline P. Canney sold 8,927 shares of the business’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider owned 29,531 shares of the company’s stock, valued at $2,645,977.60. The trade was a 23.21% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently modified their holdings of NOW. Wedge Capital Management L L P NC boosted its holdings in shares of ServiceNow by 5.4% during the second quarter. Wedge Capital Management L L P NC now owns 2,512 shares of the information technology services provider’s stock worth $249,000 after purchasing an additional 129 shares during the period. Investors Research Corp raised its position in ServiceNow by 787.2% during the 2nd quarter. Investors Research Corp now owns 7,674 shares of the information technology services provider’s stock valued at $762,000 after purchasing an additional 6,809 shares during the last quarter. Tema ETFs LLC raised its position in ServiceNow by 10.0% during the 2nd quarter. Tema ETFs LLC now owns 20,679 shares of the information technology services provider’s stock valued at $2,053,000 after purchasing an additional 1,885 shares during the last quarter. Canvas Wealth Advisors LLC lifted its holdings in ServiceNow by 60.7% in the 2nd quarter. Canvas Wealth Advisors LLC now owns 28,524 shares of the information technology services provider’s stock worth $2,832,000 after buying an additional 10,773 shares during the period. Finally, Fiduciary Financial Group LLC purchased a new stake in ServiceNow in the 2nd quarter worth approximately $404,000. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

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.