ServiceNow (NYSE:NOW) Trading 3.1% Higher – Still a Buy?

ServiceNow, Inc. (NYSE:NOW) traded up 3.1% during mid-day trading on Monday . The stock traded as high as $100.67 and last traded at $99.6960. 20,070,544 shares changed hands during mid-day trading, an increase of 1% from the average session volume of 19,810,307 shares. The stock had previously closed at $96.66.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger adoption of its AI-powered software — a signal that demand for Now Assist / AI capabilities is increasing and supports longer-term top-line growth. ServiceNow boosts annual subscription revenue outlook on strong AI software demand
• Positive Sentiment: Solid Q1 financials: subscription revenue grew ~22% YoY and the company beat EPS and revenue estimates — evidence of ongoing execution that supports medium-term growth expectations. ServiceNow Reports First Quarter 2026 Financial Results
• Positive Sentiment: New customer wins and partnerships (e.g., TridentCare case study, deeper Google Cloud alliance) show product traction for AI-powered workflows and broaden addressable market in healthcare, 5G/retail and OT/IoT use cases. TridentCare achieves 96% scheduling automation with ServiceNow AI-powered CRM ServiceNow and Google Cloud unite AI agents
• Neutral Sentiment: CEO commentary pushed back on AI-threat narratives and emphasized the company’s AI roadmap and higher guidance — bullish tone, but investors will judge execution and competitive dynamics over time. ServiceNow CEO dismisses AI software threats as ‘parlor tricks’
• Negative Sentiment: Acquisition-related margin headwind: ServiceNow said the Armis acquisition will create roughly a 75 bps operating-margin drag for the year and ~125 bps in Q2, a key reason investors punished the stock despite top-line beats. ServiceNow Posts Revenue Growth, But Says Armis Deal Will Weigh on Margins
• Negative Sentiment: Geopolitical disruption (Middle East conflict) has delayed some customer deal closures and hit subscription revenue growth in the quarter — a cited headwind that amplified investor concern about near-term growth momentum. ServiceNow Stock Tumbles On Q1 Earnings, Company Flags Delayed Deals Due To Middle East Conflict
• Negative Sentiment: Elevated short interest and broader SaaS skepticism: analysts note hedge-fund shorting and sector-level fears about AI disruption, which increases downside pressure on the stock even when fundamentals look solid. ServiceNow draws hedge fund shorts as AI concerns dent sentiment, J.P. Morgan says

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. BTIG Research reiterated a “buy” rating and issued a $185.00 price target on shares of ServiceNow in a research note on Monday. Benchmark began coverage on ServiceNow in a research note on Wednesday, April 1st. They set a “buy” rating and a $125.00 price objective for the company. Canaccord Genuity Group set a $200.00 target price on ServiceNow in a research report on Thursday, January 29th. BMO Capital Markets reduced their target price on ServiceNow from $170.00 to $120.00 and set an “outperform” rating for the company in a research note on Monday, April 13th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of ServiceNow in a research report on Thursday, January 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and an average target price of $173.46.

ServiceNow Stock Up 3.0%

The firm has a market capitalization of $106.89 billion, a price-to-earnings ratio of 61.85, a P/E/G ratio of 1.67 and a beta of 1.01. The stock has a 50 day moving average of $105.50 and a 200 day moving average of $139.08. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The company’s revenue for the quarter was up 20.7% compared to the same quarter last year. During the same period last year, the firm earned $0.73 earnings per share. As a group, analysts expect that ServiceNow, Inc. will post 2.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Paul Fipps sold 9,641 shares of ServiceNow stock in a transaction dated Wednesday, February 18th. The stock was 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 directly owned 11,757 shares in the company, valued at approximately $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the sale, the insider directly owned 26,314 shares in the company, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 16,237 shares of company stock worth $1,697,162. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. IAG Wealth Partners LLC lifted its holdings in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Bogart Wealth LLC increased its position in ServiceNow by 93.8% in the third quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider’s stock worth $29,000 after buying an additional 15 shares during the period. Wealth Watch Advisors INC acquired a new stake in ServiceNow in the third quarter worth $29,000. Albion Financial Group UT lifted its stake in ServiceNow by 78.9% in the third quarter. Albion Financial Group UT now owns 34 shares of the information technology services provider’s stock valued at $31,000 after buying an additional 15 shares during the last quarter. Finally, True Wealth Design LLC lifted its stake in ServiceNow by 52.0% in the third quarter. True Wealth Design LLC now owns 38 shares of the information technology services provider’s stock valued at $35,000 after buying an additional 13 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

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.