ServiceNow (NYSE:NOW) Stock Price Up 2.7% – Still a Buy?

ServiceNow, Inc. (NYSE:NOW) shares rose 2.7% during trading on Wednesday . The stock traded as high as $141.54 and last traded at $140.70. 10,761,491 shares traded hands during trading, a decline of 52% from the average session volume of 22,616,320 shares. The stock had previously closed at $137.00.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Enterprise-software rally: ServiceNow participated in a broader advance among software companies even as large-cap technology stocks declined. The iShares Expanded Tech-Software Sector ETF gained, suggesting investors were selectively buying software despite elevated long-term Treasury yields. Enterprise Software Stocks Rally as Tech Tape Slides
• Positive Sentiment: Analyst support: Recent coverage indicates an analyst upgrade and continued “Moderate Buy” or positive consensus ratings. Such recommendations can support the stock by reinforcing confidence in ServiceNow’s growth outlook. ServiceNow Shares Up Following Analyst Upgrade
• Positive Sentiment: AI demand and partnerships: ServiceNow is benefiting from demand for its workflow platform, AI-focused alliances, cross-selling and an expanding partner ecosystem. Recent commentary also pointed to management raising the midpoint of its 2026 subscription-revenue forecast, strengthening the growth narrative. AI Alliances and Raised Targets Could Be a Game Changer for ServiceNow
• Positive Sentiment: Product adoption: Partner INRY deployed ServiceNow EmployeeWorks in six weeks, highlighting the platform’s implementation speed and potential to expand its AI-enabled employee-workflow offering among enterprise customers. INRY Deploys ServiceNow EmployeeWorks
• Positive Sentiment: Ecosystem expansion: Xapien is integrating AI-native due-diligence capabilities directly into ServiceNow workflows, adding functionality for onboarding and third-party-risk management. Xapien Partners With ServiceNow
• Neutral Sentiment: Valuation remains a consideration: ServiceNow offers faster growth and a strong competitive position versus Salesforce, but Salesforce appears more attractive on valuation and cash generation. Elevated valuation multiples could limit further gains if growth or guidance disappoints. Salesforce vs. ServiceNow

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on NOW shares. Cantor Fitzgerald increased their price objective on ServiceNow from $141.00 to $174.00 and gave the company an “overweight” rating in a report on Monday. 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. Benchmark reiterated a “buy” rating on shares of ServiceNow in a research report on Friday, July 17th. Citigroup reiterated a “market outperform” rating on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Jefferies Financial Group restated a “buy” rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, ServiceNow presently has an average rating of “Moderate Buy” and a consensus price target of $146.51.

ServiceNow Stock Performance

The stock’s 50-day moving average price is $124.54 and its 200-day moving average price is $110.47. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company has a market capitalization of $145.48 billion, a price-to-earnings ratio of 87.94, a P/E/G ratio of 2.53 and a beta of 0.97.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping analysts’ consensus estimates 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 was up 24.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.81 EPS. As a group, equities research analysts expect that ServiceNow, Inc. will post 2.22 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Jacqueline P. Canney sold 7,847 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the sale, the insider owned 30,042 shares of the company’s stock, valued at approximately $4,145,796. This represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by company insiders.

Institutional Trading of ServiceNow

Large investors have recently bought and sold shares of the company. State Street Corp lifted its holdings in ServiceNow by 2.0% in the second quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider’s stock worth $4,868,514,000 after acquiring an additional 979,726 shares during the last quarter. National Pension Service increased its stake in shares of ServiceNow by 5.8% during the second quarter. National Pension Service now owns 2,705,240 shares of the information technology services provider’s stock valued at $268,576,000 after acquiring an additional 147,467 shares during the period. WINTON GROUP Ltd raised its holdings in ServiceNow by 45.9% during the second quarter. WINTON GROUP Ltd now owns 132,411 shares of the information technology services provider’s stock worth $13,146,000 after purchasing an additional 41,653 shares in the last quarter. Engineers Gate Manager LP lifted its position in ServiceNow by 6.7% in the second quarter. Engineers Gate Manager LP now owns 370,643 shares of the information technology services provider’s stock worth $36,797,000 after purchasing an additional 23,409 shares during the period. Finally, Capital Analysts LLC boosted its stake in ServiceNow by 12,952.5% during the 2nd quarter. Capital Analysts LLC now owns 5,221 shares of the information technology services provider’s stock valued at $518,000 after purchasing an additional 5,181 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company’s products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.