ServiceNow, Inc. (NYSE:NOW) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

ServiceNow, Inc. (NYSE:NOW) has been assigned an average recommendation of “Moderate Buy” from the forty-three ratings firms that are covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell rating, three have assigned a hold rating, thirty-six have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $153.90.

NOW has been the topic of a number of recent research reports. The Goldman Sachs Group reiterated a “buy” rating on shares of ServiceNow in a research report on Monday, August 3rd. Royal Bank Of Canada boosted their target price on ServiceNow from $130.00 to $176.00 and gave the stock an “outperform” rating in a research report on Monday, October 12th. Evercore restated an “outperform” rating on shares of ServiceNow in a research report on Tuesday, October 13th. Stifel Nicolaus set a $160.00 price target on ServiceNow and gave the company a “buy” rating in a research note on Tuesday, October 6th. Finally, Oppenheimer reiterated an “outperform” rating and issued a $165.00 price target (up from $140.00) on shares of ServiceNow in a report on Tuesday, October 13th.

ServiceNow Trading Up 2.4%

Shares of NYSE NOW opened at $153.08 on Friday. ServiceNow has a 1-year low of $81.24 and a 1-year high of $192.97. The company has a market cap of $158.29 billion, a PE ratio of 78.38, a P/E/G ratio of 2.75 and a beta of 0.99. 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 company has a 50-day moving average of $136.57 and a two-hundred day moving average of $114.70.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the business earned $0.81 earnings per share. ServiceNow’s quarterly revenue was up 24.0% on a year-over-year basis. As a group, equities analysts expect that ServiceNow will post 2.22 earnings per share for the current fiscal year.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow and NVIDIA launched Arc, an AI agent designed for enterprise and Mac workflows. The partnership strengthens ServiceNow’s position in AI orchestration and could support adoption of its platform across corporate environments. ServiceNow and Nvidia launch Arc, a new AI agent for enterprise
• Positive Sentiment: ServiceNow’s AI-related contract value has reportedly surpassed $1 billion, reinforcing the view that its AI products are moving from experimentation toward meaningful monetization. The stock has rallied sharply over the past three months as investors anticipate further enterprise demand. ServiceNow Rallies 43% in Three Months as AI Contract Value Tops $1 Billion
• Positive Sentiment: Analysts have raised price targets ahead of ServiceNow’s October 28 earnings report. Bernstein set a Street-high $266 target, while Piper Sandler and TD Cowen also increased targets, citing AI-driven workflow tools, customer upgrades and federal demand. ServiceNow Orchestrates AI’s Next Act—Can Earnings Deliver?
• Neutral Sentiment: Investors are focused on the upcoming quarterly report. ServiceNow’s latest quarter showed 24% revenue growth to approximately $3.99 billion and an earnings beat, but some forecasts call for a single-digit earnings decline in the next report, raising the bar for continued upside. ServiceNow’s Quarterly Earnings Preview
• Negative Sentiment: Zacks Research downgraded ServiceNow from “hold” to “strong sell,” adding pressure ahead of earnings. The downgrade reflects concerns that expectations may already discount much of the AI opportunity.
• Negative Sentiment: ServiceNow may need stronger cash flow to finance its AI expansion. With a roughly 96 price-to-earnings ratio and current and quick ratios near 0.70, the stock remains vulnerable if AI investments do not translate into accelerating profits and cash generation. ServiceNow Needs Stronger Cash Flow to Support Its AI Expansion

Insiders Place Their Bets

In other ServiceNow news, insider Paul Fipps sold 2,034 shares of the company’s stock in a transaction dated 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 directly owned 18,305 shares in the company, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jacqueline Canney sold 7,847 shares of the company’s stock in a transaction dated 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 transaction, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors and hedge funds have recently modified their holdings of the business. Lmcg Investments LLC lifted its stake in ServiceNow by 916.3% in the third quarter. Lmcg Investments LLC now owns 50,836 shares of the information technology services provider’s stock valued at $6,813,000 after buying an additional 45,834 shares during the period. Crescent Grove Advisors LLC raised its position in shares of ServiceNow by 50.6% in the 3rd quarter. Crescent Grove Advisors LLC now owns 5,522 shares of the information technology services provider’s stock valued at $740,000 after acquiring an additional 1,855 shares during the period. Obermeyer Wealth Partners boosted its stake in ServiceNow by 11.7% during the 3rd quarter. Obermeyer Wealth Partners now owns 3,456 shares of the information technology services provider’s stock worth $463,000 after acquiring an additional 363 shares during the last quarter. Diligent Investors LLC boosted its stake in ServiceNow by 4.1% during the 3rd quarter. Diligent Investors LLC now owns 2,560 shares of the information technology services provider’s stock worth $343,000 after acquiring an additional 100 shares during the last quarter. Finally, Cardinal Point Capital Management ULC bought a new position in ServiceNow during the 3rd quarter worth approximately $255,000. 87.18% of the stock is owned by institutional investors.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.