Wells Fargo & Company Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

ServiceNow (NYSE:NOW) had its price target dropped by investment analysts at Wells Fargo & Company from $190.00 to $175.00 in a research note issued on Thursday, Benzinga reports. The firm currently has an “overweight” rating on the information technology services provider’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 55.09% from the company’s previous close.

NOW has been the topic of several other research reports. CLSA assumed coverage on ServiceNow in a research note on Monday, July 20th. They issued an “underperform” rating and a $72.00 price target on the stock. UBS Group reissued an “underweight” rating on shares of ServiceNow in a report on Thursday. Canaccord Genuity Group set a $145.00 target price on ServiceNow in a research note on Thursday. Piper Sandler reissued an “overweight” rating and issued a $175.00 target price on shares of ServiceNow in a research note on Thursday. Finally, DA Davidson set a $170.00 price target on shares of ServiceNow and gave the stock a “buy” rating in a research note on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $155.55.

ServiceNow Trading Down 24.8%

ServiceNow stock traded down $37.29 during mid-day trading on Thursday, reaching $112.84. 25,087,048 shares of the company traded hands, compared to its average volume of 21,324,746. The firm’s 50 day moving average price is $139.55 and its 200 day moving average price is $115.79. ServiceNow has a 52-week low of $81.24 and a 52-week high of $192.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The firm has a market capitalization of $116.68 billion, a price-to-earnings ratio of 69.67, a P/E/G ratio of 2.92 and a beta of 0.99.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. During the same period in the previous year, the company earned $4.82 earnings per share. ServiceNow’s quarterly revenue was up 20.5% on a year-over-year basis. On average, analysts anticipate that ServiceNow will post 2.23 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the sale, the director directly owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction that occurred on 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. This represents a 20.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,081 shares of company stock worth $1,937,904 over the last quarter. Insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC increased its position in shares of 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 during the last quarter. Marquette Asset Management LLC lifted its position in ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock valued at $30,000 after buying an additional 129 shares during the last quarter. Kilter Group LLC purchased a new stake in shares of ServiceNow in the 2nd quarter valued at approximately $31,000. Solstein Capital LLC acquired a new position in shares of ServiceNow in the 2nd quarter worth approximately $35,000. Finally, Main Street Group LTD acquired a new position in shares of ServiceNow in the 1st quarter worth approximately $40,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Revenue and subscription growth remained strong. Third-quarter revenue rose 20.5% year over year to $4.11 billion, exceeding the $4.09 billion consensus estimate. Subscription revenue increased 21% to $3.99 billion. ServiceNow Reports Third Quarter 2026 Financial Results
• Positive Sentiment: AI partnerships and customer adoption support the long-term story. ServiceNow expanded its partnership with OpenAI to connect AI reasoning with governed enterprise workflows, cybersecurity and agentic development. HPE also selected ServiceNow for a five-year, AI-powered support-services agreement. ServiceNow and OpenAI Partnership
• Positive Sentiment: Some analysts see substantial upside. Piper Sandler reaffirmed its overweight rating with a $175 price target, while JPMorgan and another prominent Wall Street firm reportedly see meaningful appreciation potential if ServiceNow’s AI monetization accelerates. MarketWatch Analyst Commentary
• Neutral Sentiment: New AI initiatives have not yet resolved investor skepticism. ServiceNow launched a Control Tower Alliance with companies including Anthropic, AWS and Cisco to help enterprises deploy AI safely, but investors remain focused on measurable revenue and backlog acceleration. ServiceNow Control Tower Alliance
• Negative Sentiment: Earnings and guidance disappointed. Adjusted earnings of $1.00 per share missed the $1.02 consensus estimate, ending a six-quarter earnings-beat streak. Fourth-quarter revenue guidance reportedly came in below Wall Street expectations, intensifying concerns about slowing demand and backlog growth. ServiceNow Shares Sink on Earnings Miss and Weak Outlook
• Negative Sentiment: Valuation and sector fears amplify the reaction. With ServiceNow trading at a high earnings multiple, investors are demanding stronger evidence that AI will accelerate—not cannibalize—software revenue. The selloff also pressured software-focused ETFs and other technology stocks. ServiceNow Weak Forecast and Wall Street Reaction

About ServiceNow

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.