FY2027 EPS Estimates for ServiceNow Cut by Erste Group Bank

ServiceNow, Inc. (NYSE:NOW) – Analysts at Erste Group Bank dropped their FY2027 earnings per share (EPS) estimates for ServiceNow in a report issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now expects that the information technology services provider will post earnings per share of $3.19 for the year, down from their previous forecast of $3.20. The consensus estimate for ServiceNow’s current full-year earnings is $8.93 per share.

Other equities research analysts have also recently issued reports about the stock. Benchmark started coverage on shares of ServiceNow in a research report on Wednesday, April 1st. They set a “buy” rating and a $125.00 price target for the company. Robert W. Baird set a $175.00 price target on shares of ServiceNow in a research report on Thursday, January 29th. Royal Bank Of Canada dropped their price target on shares of ServiceNow from $185.00 to $150.00 and set an “outperform” rating for the company in a research report on Monday, February 9th. Arete Research set a $200.00 price target on shares of ServiceNow in a research report on Tuesday, January 6th. Finally, Piper Sandler reiterated an “overweight” rating on shares of ServiceNow in a research report on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus price target of $187.46.

ServiceNow Price Performance

NOW stock opened at $100.36 on Wednesday. The business has a fifty day moving average of $109.13 and a two-hundred day moving average of $145.54. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a market cap of $104.97 billion, a price-to-earnings ratio of 60.17, a price-to-earnings-growth ratio of 1.71 and a beta of 1.01. ServiceNow has a 52-week low of $98.00 and a 52-week high of $211.48.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. The company had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.73 earnings per share.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in NOW. Brighton Jones LLC grew its holdings in ServiceNow by 1.1% during the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after acquiring an additional 30 shares in the last quarter. Sivia Capital Partners LLC boosted its position in shares of ServiceNow by 4.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after acquiring an additional 34 shares in the last quarter. United Bank boosted its position in shares of ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after acquiring an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. boosted its position in shares of ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after acquiring an additional 42 shares in the last quarter. Finally, Gamco Investors INC. ET AL boosted its position in shares of ServiceNow by 0.4% during the 2nd quarter. Gamco Investors INC. ET AL now owns 4,787 shares of the information technology services provider’s stock worth $4,921,000 after acquiring an additional 21 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

Insider Buying and Selling

In related news, insider Paul Fipps sold 9,641 shares of the business’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares of the company’s stock, valued at $1,245,419.01. The trade was a 45.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the transaction, the director directly owned 46,430 shares of the company’s stock, valued at $4,697,323.10. The trade was a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 16,237 shares of company stock valued at $1,697,162 in the last three months. 0.34% of the stock is owned by corporate insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: DXC announced a multi-year agreement to use the ServiceNow AI Platform to accelerate enterprise AI adoption and modernization — a material commercial win that supports pipeline and long-term revenue scaling. DXC Partners with ServiceNow
• Positive Sentiment: Naitiv launched as an AI-native ServiceNow consultancy led by former ServiceNow executives; the new partner targets insurance-scale AI transformations, expanding the ServiceNow partner ecosystem and potential implementation demand. Naitiv Launches
• Positive Sentiment: CNBC’s Trade Tracker shows portfolio manager Stephanie Link buying more ServiceNow — a visible buy by an active manager that can signal conviction to other investors. Trade Tracker: Stephanie Link buys
• Neutral Sentiment: Coverage pieces (Yahoo/Seeking Alpha/MSN) debate whether the pullback makes NOW undervalued — these analyses keep the valuation discussion top-of-mind for investors but don’t move fundamentals immediately. Assessing Whether ServiceNow Still Looks Undervalued
• Neutral Sentiment: Commentary notes value managers are still holding names like ServiceNow despite AI-related concerns — a signal that some long-term holders remain, which can limit downside but also slow rebounds. Value investors still holding
• Negative Sentiment: BTIG trimmed its price target to $185 from $200 while keeping a Buy — the cut signals analyst scrutiny of FY26 revenue guidance and reduces the cushion investors price in. BTIG price target cut
• Negative Sentiment: Goldman Sachs lowered its target from $216 to $188 while maintaining a Buy — another large-house reduction that can pressure sentiment and amplify selling from momentum-focused investors. Goldman Sachs adjusts price target
• Negative Sentiment: Stifel and other outlets have become more cautious (while some keep Buy ratings), highlighting near-term execution and AI revenue-mix risk — a tone shift that can reduce conviction among shorter-term holders. Why Stifel Turned More Cautious
• Negative Sentiment: Report that CEO compensation jumped nearly 40% in 2025 (The Information) may create governance/optics concerns for some institutional holders. CEO compensation jump

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.