ServiceNow (NYSE:NOW) Shares Gap Up – Still a Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $99.28, but opened at $103.60. ServiceNow shares last traded at $103.5280, with a volume of 4,921,560 shares traded.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Guggenheim upgraded ServiceNow to Buy and said the stock looks undervalued after heavy sector selloffs, which is boosting investor sentiment. ServiceNow jumps 4% as Guggenheim flips from Neutral to Buy
• Positive Sentiment: Multiple reports echoed the upgrade, saying ServiceNow and Salesforce now look like attractive entry points after recent weakness, reinforcing the idea that the selloff may have gone too far. ServiceNow and Salesforce shares now look like buys, as ‘Armageddon’ fears are too extreme, analyst says
• Positive Sentiment: ServiceNow also has recent AI-related and enterprise security momentum, including a joint initiative with Accenture to modernize risk management and cyber services using agentic AI. ServiceNow, Accenture unveil AI-driven cyber risk management offering
• Neutral Sentiment: The stock is being watched ahead of upcoming Q2 earnings, where analysts expect results to show continued pressure on growth and earnings trends. ServiceNow’s Q2 2026 Earnings: What to Expect
• Negative Sentiment: Investors still face a real AI disruption risk, with analysts warning that enterprise software valuations remain under pressure as AI reshapes the industry. ServiceNow stock jumps after Guggenheim upgrade despite AI concerns

Analyst Ratings Changes

Several research firms have weighed in on NOW. Truist Financial dropped their target price on shares of ServiceNow from $125.00 to $120.00 and set a “buy” rating for the company in a report on Thursday, April 23rd. Barclays reissued an “overweight” rating and set a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Bank of America started coverage on ServiceNow in a report on Monday, May 18th. They set a “buy” rating and a $130.00 target price on the stock. JPMorgan Chase & Co. dropped their price target on ServiceNow from $195.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, April 23rd. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $157.00 price target on shares of ServiceNow in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of “Moderate Buy” and an average target price of $141.68.

ServiceNow Stock Up 6.2%

The firm has a market cap of $108.70 billion, a price-to-earnings ratio of 62.74, a PEG ratio of 1.66 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. The firm has a fifty day moving average price of $100.23 and a 200-day moving average price of $113.88.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same period in the prior year, the firm posted $0.81 earnings per share. The business’s quarterly revenue was up 22.1% compared to the same quarter last year. As a group, sell-side analysts forecast that ServiceNow, Inc. will post 2.34 EPS for the current year.

Insider Activity at ServiceNow

In other news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction dated 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. This represents a 35.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Paul Fipps sold 1,048 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last quarter, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by insiders.

Institutional Trading of ServiceNow

Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp increased its position in ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after buying an additional 25,517,218 shares during the period. Geode Capital Management LLC grew its stake in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the period. Finally, Morgan Stanley grew its stake in ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock worth $3,482,543,000 after buying an additional 17,514,679 shares during the period. 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.