ServiceNow (NYSE:NOW) Trading 7% Higher – Should You Buy?

ServiceNow, Inc. (NYSE:NOW) shares were up 7% on Monday . The stock traded as high as $108.15 and last traded at $105.7110. Approximately 32,363,999 shares changed hands during mid-day trading, an increase of 35% from the average session volume of 23,966,031 shares. The stock had previously closed at $98.78.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Broad software-sector rebound: ServiceNow participated in a coordinated recovery across enterprise software stocks as investors shifted back toward established companies positioned to benefit from AI adoption. Salesforce, ServiceNow and Workday rebound on AI rotation
• Positive Sentiment: Growth and guidance remain key catalysts: Recent coverage highlights accelerating revenue, a roughly 25% increase in subscription revenue, and management’s higher full-year outlook. ServiceNow’s latest reported quarter also exceeded consensus on both revenue and adjusted earnings, with revenue growing 24% year over year. ServiceNow revenue growth is accelerating
• Positive Sentiment: AI execution and partnerships: Analysts and bullish investors point to rising agentic-AI adoption, stronger net new annual contract value, cross-selling, and opportunities in security and risk. A multiyear TeamViewer partnership and expanded use of ServiceNow’s AI Platform by Experian provide additional evidence of enterprise demand. ServiceNow partners with TeamViewer and expands Experian deployment
• Positive Sentiment: Analyst sentiment is supportive: A recent analyst upgrade and an average brokerage rating equivalent to “Buy” are helping reinforce the view that the selloff may have created a long-term entry opportunity. ServiceNow stock rises after analyst upgrade
• Neutral Sentiment: Valuation remains debated: Bullish commentary describes NOW as an inexpensive SaaS leader after its decline, while other coverage cautions that investors must weigh its valuation against execution and continued AI-related uncertainty. ServiceNow as an enterprise AI bargain
• Negative Sentiment: Risks remain: Prior selling reflected fears that generative AI could disrupt traditional software models. The optimistic analyst consensus may also be a less reliable signal if expectations are already elevated, leaving the stock vulnerable to slower growth or weaker AI monetization. Broker recommendations for ServiceNow

Analyst Upgrades and Downgrades

A number of research firms have commented on NOW. Oppenheimer restated an “outperform” rating and issued a $140.00 price target (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Citic Securities decreased their price target on ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. TD Cowen reiterated a “buy” rating and issued a $140.00 price objective on shares of ServiceNow in a research report on Friday, July 17th. Weiss Ratings lowered ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $145.00 price target (down from $163.00) on shares of ServiceNow in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $143.39.

ServiceNow Price Performance

The company has a 50-day moving average of $104.77 and a 200-day moving average of $107.42. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The firm has a market capitalization of $109.31 billion, a price-to-earnings ratio of 66.07, a price-to-earnings-growth ratio of 1.67 and a beta of 0.96.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same period last year, the company posted $0.81 EPS. The business’s quarterly revenue was up 24.0% on a year-over-year basis. As a group, research analysts anticipate that ServiceNow, Inc. will post 2.33 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the firm’s stock in a transaction 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 sale, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction 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 completion of the sale, the director directly owned 44,930 shares in the company, valued at $3,919,243.90. This represents a 3.23% 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. Insiders sold 19,144 shares of company stock valued at $1,730,097 over the last quarter. Corporate insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NOW. Vanguard Group Inc. grew its stake in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp lifted its position in shares of ServiceNow by 406.6% in the fourth 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 lifted its position in shares of 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 worth $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC boosted its holdings 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 purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley grew its position in ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares in the last quarter. 87.18% of the stock is 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.