ServiceNow (NYSE:NOW) Stock Jumps 1.5% – Here’s Why

ServiceNow, Inc. (NYSE:NOW)’s share price shot up 1.5% during mid-day trading on Tuesday. The stock traded as high as $140.60 and last traded at $138.14. 9,446,760 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 21,999,408 shares. The stock had previously closed at $136.08.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Improving demand outlook: UBS said ServiceNow’s third-quarter demand trends appear stable with some improvement. The firm raised its estimates for current remaining performance obligations and subscription-revenue growth by 50 basis points, citing stronger interest in AI and security. UBS expects a normal guidance beat rather than an outsized surprise, but still raised its price target. ServiceNow demand trends show improvement as UBS raises price target
• Positive Sentiment: AI monetization is expanding: ServiceNow says approximately 50% of net-new revenue is now non-seat-based, reflecting a shift toward consumption and usage-driven AI offerings. Reports also note that the company has surpassed $1 billion in AI contract value, strengthening the case that AI is becoming a meaningful commercial growth engine. ServiceNow says 50% of net-new revenue non-seat-based amid AI shift
• Positive Sentiment: New AI workflow products: The company launched AI Workflow Factory and Autonomous Engineer, designed to identify opportunities for automation and build, operate, and extend AI workflows across fragmented enterprise systems. The products could increase customer use of ServiceNow’s platform and support higher-value contracts. ServiceNow launches AI Workflow Factory
• Positive Sentiment: Analyst and investor optimism: Stifel expects consumption trends to gain momentum, while bullish commentary suggests generative AI could drive substantial upside if adoption accelerates. ServiceNow’s India expansion and partner ecosystem also provide additional avenues for enterprise growth. ServiceNow AI Adoption, Enterprise Spending Catches Analyst Attention
• Neutral Sentiment: Key risks remain: Some customers are still uncertain about AI-enabled products and ServiceNow’s pricing model. With the stock trading at a high earnings multiple, investors may demand evidence that AI bookings convert into sustained revenue and earnings growth. ServiceNow AI Adoption, Enterprise Spending Catches Analyst Attention

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on NOW. Cantor Fitzgerald lifted their target price on shares of ServiceNow from $141.00 to $174.00 and gave the company an “overweight” rating in a research report on Monday, September 21st. Deutsche Bank Aktiengesellschaft increased their target price on ServiceNow from $135.00 to $155.00 and gave the stock a “buy” rating in a report on Monday, September 21st. BMO Capital Markets boosted their price target on ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. KeyCorp reiterated an “underweight” rating on shares of ServiceNow in a research note on Tuesday, July 21st. Finally, Robert W. Baird upped their target price on shares of ServiceNow from $118.00 to $125.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $145.59.

ServiceNow Stock Up 1.5%

The firm’s 50-day moving average is $130.68 and its two-hundred day moving average is $111.60. 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 stock has a market cap of $142.84 billion, a P/E ratio of 86.34, a PEG ratio of 2.47 and a beta of 0.99.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same period last year, the company earned $0.81 EPS. On average, equities research analysts anticipate that ServiceNow, Inc. will post 2.22 earnings per share for the current year.

Insider Activity at ServiceNow

In other news, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the transaction, the insider owned 30,042 shares of the company’s stock, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the sale, the insider owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 14,081 shares of company stock worth $1,937,904 over the last 90 days. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

A number of institutional investors have recently bought and sold shares of NOW. A. D. Beadell Investment Counsel Inc. lifted its holdings in shares of ServiceNow by 2.9% during the 2nd quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider’s stock valued at $279,000 after purchasing an additional 80 shares in the last quarter. Atwood & Palmer Inc. increased its position in shares of ServiceNow by 20.0% during the second quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider’s stock worth $60,000 after acquiring an additional 100 shares in the last quarter. Capital Advisors Ltd. LLC boosted its stake in ServiceNow by 25.2% in the 1st quarter. Capital Advisors Ltd. LLC now owns 516 shares of the information technology services provider’s stock worth $54,000 after purchasing an additional 104 shares during the period. Cornerstone Financial Management LLC increased its holdings in ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 107 shares in the last quarter. Finally, Symphony Financial Ltd. Co. raised its stake in shares of ServiceNow by 1.5% in the 2nd quarter. Symphony Financial Ltd. Co. now owns 7,584 shares of the information technology services provider’s stock valued at $757,000 after purchasing an additional 115 shares during the period. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.