ServiceNow (NYSE:NOW) Trading 1.7% Higher – Should You Buy?

ServiceNow, Inc. (NYSE:NOW)’s share price rose 1.7% during trading on Thursday . The stock traded as high as $129.75 and last traded at $127.0890. Approximately 22,867,361 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 23,872,461 shares. The stock had previously closed at $124.94.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s recent quarter exceeded expectations, with earnings and revenue ahead of consensus, revenue growth of about 24% year over year, and higher annual subscription-revenue expectations. The results reinforce the company’s growth outlook and help explain the renewed momentum in the shares. What’s Going On With ServiceNow
• Positive Sentiment: Analyst and market commentary remains constructive. Wells Fargo reportedly maintained a Buy rating while raising its price target to $175, while other analysts continue to cite ServiceNow’s AI-native security tools and roughly $1 billion annualized AI revenue run rate as potential long-term growth drivers. ServiceNow Stock Opinions on Analyst Upgrades and AI Initiatives
• Positive Sentiment: ServiceNow is being highlighted as a potentially undervalued AI and software-as-a-service growth stock. Its agentic-AI governance capabilities, larger customer contracts and strong free-cash-flow generation are viewed as evidence that enterprise AI adoption can support future expansion. Wall Street May Be Sleeping on This AI Growth Story
• Neutral Sentiment: A valuation comparison between Fujitsu and ServiceNow gives investors additional context, but does not represent a major new fundamental catalyst for NOW. FJTSY or NOW: Which Is the Better Value Stock Right Now?
• Negative Sentiment: Security researchers reported “City-Forum” data-theft attacks targeting Salesforce and ServiceNow portals. Although the report does not establish a ServiceNow breach, attacks involving its platform could increase customer-security concerns and support costs. City-Forum Data-Theft Attacks
• Negative Sentiment: An article said Claude AI sold its entire ServiceNow position after previously holding the stock. This is a small, algorithm-tracked portfolio signal rather than a company-specific fundamental development, but it may add short-term sentiment pressure. Claude AI Just Sold ServiceNow

Analysts Set New Price Targets

NOW has been the subject of a number of recent analyst reports. BMO Capital Markets raised their price objective on ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. Piper Sandler reaffirmed an “overweight” rating and issued a $140.00 target price on shares of ServiceNow in a research report on Thursday, July 23rd. Mizuho lowered their target price on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a research note on Thursday, April 23rd. Bank of America initiated coverage on shares of ServiceNow in a research report on Monday, May 18th. They set a “buy” rating and a $130.00 price target for the company. Finally, Evercore reissued an “outperform” rating and issued a $160.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $143.76.

ServiceNow Stock Performance

The stock has a market capitalization of $131.41 billion, a PE ratio of 79.43, a P/E/G ratio of 2.24 and a beta of 0.94. 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’s 50 day moving average is $106.70 and its two-hundred day moving average is $105.71.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating the consensus estimate of $0.86 by $0.04. The company had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm’s revenue was up 24.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.81 EPS. As a group, research analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Insider Transactions at ServiceNow

In related news, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction 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 transaction, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available 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. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake 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 worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of ServiceNow in the 2nd quarter valued at approximately $9,536,615,000. State Street Corp increased its position in shares of ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of ServiceNow by 371.0% in the 4th 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 purchasing an additional 25,517,218 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after purchasing an additional 18,854,775 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.