ServiceNow (NYSE:NOW) Shares Down 6% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded down 6% during trading on Tuesday . The company traded as low as $131.61 and last traded at $127.5930. 68,298,016 shares traded hands during mid-day trading, an increase of 130% from the average session volume of 29,649,568 shares. The stock had previously closed at $135.6990.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow continues to be highlighted as a leader in the software/AI rebound, with multiple reports citing strong momentum in software stocks after Nvidia’s AI comments supported demand for enterprise software names. ServiceNow, Adobe stocks jump as Nvidia’s new AI chip sparks software rally
• Positive Sentiment: Investor interest remains tied to ServiceNow’s AI positioning, including agentic AI and its expanding enterprise partnerships, which may support long-term revenue growth and keep the stock in focus as a potential AI beneficiary. Here is Why ServiceNow (NOW) is One of the Best Future Tech Stocks According to Billionaires
• Neutral Sentiment: New coverage compares ServiceNow with other software names and asks whether it is the better buy versus peers like Intuit, underscoring ongoing investor debate rather than a clear new fundamental catalyst. ServiceNow vs. Intuit: Which Technology Stock Is a Better Buy in 2026?
• Neutral Sentiment: Some commentary frames ServiceNow as part of a wider software comeback, but the move appears to be driven more by sector rotation and AI optimism than by a company-specific announcement. ServiceNow Is Leading a Software Comeback for These Stocks
• Negative Sentiment: Bearish opinion pieces and valuation-focused commentary suggest some investors think ServiceNow may be expensive relative to its near-term growth outlook, which can pressure the stock after a sharp run-up. ServiceNow: The More I Look, The Less Appealing It Feels

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. BNP Paribas Exane raised shares of ServiceNow from a “neutral” rating to an “outperform” rating and set a $140.00 price objective on the stock in a report on Monday, March 16th. Truist Financial lowered their price target on shares of ServiceNow from $125.00 to $120.00 and set a “buy” rating on the stock in a report on Thursday, April 23rd. DA Davidson reaffirmed a “buy” rating and issued a $190.00 price target on shares of ServiceNow in a report on Tuesday, May 5th. Mizuho lowered their price target on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating on the stock in a report on Thursday, April 23rd. Finally, HSBC lowered their price target on shares of ServiceNow from $226.00 to $171.00 and set a “buy” rating on the stock in a report on Thursday, April 16th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have issued a Hold rating and one has 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 $141.85.

ServiceNow Stock Performance

The firm’s 50-day moving average is $98.50 and its two-hundred day moving average is $123.13. The stock has a market cap of $131.55 billion, a price-to-earnings ratio of 76.04, a P/E/G ratio of 2.05 and a beta of 0.94. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last posted 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 analysts’ expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm’s quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the company posted $0.81 EPS. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.36 earnings per share for the current year.

Insider Activity

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction dated 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 owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the transaction, the director directly owned 30,090 shares in the company, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 in the last 90 days. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently made changes to their positions in the business. IAG Wealth Partners LLC increased its stake in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 18 shares during the period. Wealth Watch Advisors INC acquired a new position in ServiceNow during the third quarter worth about $29,000. Texas Capital Bancshares Inc TX acquired a new position in ServiceNow during the third quarter worth about $37,000. Ameriflex Group Inc. grew its position in shares of ServiceNow by 187.5% in the third quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider’s stock valued at $42,000 after purchasing an additional 30 shares during the last quarter. Finally, Kelleher Financial Advisors acquired a new stake in shares of ServiceNow in the third quarter valued at approximately $50,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

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.