ServiceNow (NYSE:NOW) Shares Up 4.6% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW) shot up 4.6% during trading on Wednesday . The company traded as high as $118.36 and last traded at $115.7060. 40,010,671 shares traded hands during mid-day trading, an increase of 66% from the average daily volume of 24,172,545 shares. The stock had previously closed at $110.62.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts highlighted rising customer demand for agentic AI and ServiceNow’s expanding AI product portfolio as potential drivers of long-term subscription and revenue growth. The company is positioning its enterprise AI tools as a way for customers to automate workflows and improve productivity. Can Agentic AI Adoption Fuel ServiceNow’s Next Phase of Growth?
• Positive Sentiment: ServiceNow’s shares continued to benefit from momentum in AI, with trading above key moving averages—a technical signal that may encourage additional buying. ServiceNow Stock Holds Above Key Moving Averages
• Positive Sentiment: Recent coverage emphasized that ServiceNow is more than an AI story: its cybersecurity business could become another significant growth engine. The company previously reported quarterly revenue of $3.99 billion, up 24% year over year, and exceeded consensus earnings and revenue estimates. ServiceNow’s Q2 Earnings Showed It’s More Than an AI Stock
• Positive Sentiment: Investment commentary described NOW as attractive amid enterprise workflow automation and AI adoption, while analysts argued that the market may be underestimating ServiceNow’s AI opportunity. Is the Market Mispricing ServiceNow’s AI Future?
• Neutral Sentiment: A new integration with IP Fabric can keep customers’ ServiceNow configuration management databases more accurate, potentially improving product value and customer retention, though the direct financial impact is unclear. IP Fabric’s ServiceNow Integration Keeps CMDB Continuously Accurate and Updated
• Negative Sentiment: ServiceNow reportedly cut hundreds of jobs as part of a global restructuring and efficiency drive. Although management says the changes support streamlined operations and an AI-focused strategy, layoffs underscore pressure to control costs and adapt to changing software-industry conditions. ServiceNow Cut Hundreds of Jobs

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on NOW. Jefferies Financial Group reaffirmed a “buy” rating and set a $140.00 price objective (up from $135.00) on shares of ServiceNow in a report on Thursday, July 23rd. Bank of America started coverage on shares of ServiceNow in a report on Monday, May 18th. They issued a “buy” rating and a $130.00 target price on the stock. BMO Capital Markets upped their target price on shares of ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. Needham & Company LLC reaffirmed a “buy” rating and set a $115.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Citic Securities reduced their price target on shares of ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $143.39.

ServiceNow Trading Up 4.6%

The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The stock has a 50 day simple moving average of $104.99 and a 200-day simple moving average of $106.84. The firm has a market cap of $119.64 billion, a P/E ratio of 72.32, a P/E/G ratio of 1.86 and a beta of 0.96.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion for the quarter, compared to analysts’ expectations 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 period in the prior year, the firm earned $0.81 EPS. On average, equities research analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Insider Buying and Selling

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. This trade represents a 7.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 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 Anita M. Sands sold 16,445 shares of the business’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 19,144 shares of company stock worth $1,730,097. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Millstone Evans Group LLC increased its stake in ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC raised its position in ServiceNow by 540.0% during the fourth 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 period. Blueline Advisors LLC bought a new stake in shares of ServiceNow in the 4th quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC lifted its stake in shares of ServiceNow by 560.0% in the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 140 shares during the last quarter. Finally, Wealth Watch Advisors INC lifted its stake in shares of ServiceNow by 432.3% in the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 134 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

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.