ServiceNow (NYSE:NOW) Stock Price Down 6.5% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) shares dropped 6.5% during mid-day trading on Tuesday . The stock traded as low as $103.08 and last traded at $106.7980. Approximately 35,322,936 shares changed hands during mid-day trading, an increase of 47% from the average daily volume of 24,017,369 shares. The stock had previously closed at $114.19.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and IBM announced a partnership to help large enterprises scale AI by modernizing legacy IT systems and making enterprise data more usable for agentic AI, a potentially constructive growth signal for ServiceNow’s platform. IBM And ServiceNow Target Enterprise AI Scale While Seeding Future Talent
• Positive Sentiment: Phenom announced AI hiring agents built with ServiceNow, reinforcing demand for ServiceNow’s workflow automation and HR-focused AI tools. Phenom Partners with ServiceNow to Introduce AI Hiring Agents
• Positive Sentiment: Analyst commentary said ServiceNow demand remains resilient despite global uncertainty, pointing to pricing power, AI growth potential, and strong technical support for the shares. ServiceNow Demand Remains Resilient Despite Global Uncertainty: Analyst
• Neutral Sentiment: Several articles highlighted growing investor attention on ServiceNow and recurring interest in the name, but these pieces were more commentary than fresh fundamental news. Investors Heavily Search ServiceNow, Inc. (NOW): Here is What You Need to Know
• Neutral Sentiment: Market commentary suggested the stock may look cheap after a sharp pullback, but that view is speculative and tied more to sentiment than a new company-specific catalyst. Buy, Hold, or Sell: Dropping 21% in a Week as a New Fed Chair Steps In, Is ServiceNow an Absolute Steal at $107?
• Negative Sentiment: TechCrunch reported that ServiceNow notified some customers that a bug exposed data to the internet, and separate reports said the flaw was exploited against customer instances—raising security and trust concerns. ServiceNow tells customers a bug left some of their data exposed to the internet
• Negative Sentiment: Jim Cramer said ServiceNow is “expensive,” reinforcing valuation concerns that can weigh on the stock during a risk-off environment. The AI Trade Nobody Is Making Right Now — and Why It Could Be 2026’s Best Opportunity

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on NOW shares. Wall Street Zen downgraded shares of ServiceNow from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Argus dropped their target price on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Bank of America started coverage on shares of ServiceNow in a research report on Monday, May 18th. They issued a “buy” rating and a $130.00 target price on the stock. Benchmark started coverage on shares of ServiceNow in a research report on Wednesday, April 1st. They issued a “buy” rating and a $125.00 target price on the stock. Finally, Citigroup lifted their target price on shares of ServiceNow from $154.00 to $158.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $141.85.

ServiceNow Price Performance

The stock’s 50-day moving average is $99.87 and its 200 day moving average is $120.59. The stock has a market capitalization of $106.23 billion, a PE ratio of 61.40, a P/E/G ratio of 1.77 and a beta of 0.94. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the previous year, the firm posted $0.81 earnings per share. The firm’s revenue was up 22.1% on a year-over-year basis. As a group, equities analysts predict that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director directly owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the transaction, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 28,071 shares of company stock valued at $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Several large investors have recently added to or reduced their stakes in NOW. Brighton Jones LLC grew its position in ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after acquiring an additional 30 shares in the last quarter. Sivia Capital Partners LLC grew its position in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after acquiring an additional 34 shares in the last quarter. United Bank grew its position in ServiceNow by 15.5% in the second quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after acquiring an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. grew its position in ServiceNow by 2.2% in the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after acquiring an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC grew its position in ServiceNow by 205.1% in the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock worth $931,000 after acquiring an additional 609 shares in the last quarter. 87.18% of the stock is owned by 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.