ServiceNow (NYSE:NOW) Downgraded by Zacks Research to Strong Sell

Zacks Research downgraded shares of ServiceNow (NYSE:NOW) from a hold rating to a strong sell rating in a research note published on Monday,Zacks reports.

Several other analysts also recently commented on NOW. Oppenheimer restated an “outperform” rating and set a $165.00 target price (up from $140.00) on shares of ServiceNow in a report on Tuesday, October 13th. Piper Sandler upped their price target on shares of ServiceNow from $140.00 to $175.00 and gave the company an “overweight” rating in a report on Friday, October 16th. Deutsche Bank Aktiengesellschaft upped their price target on shares of ServiceNow from $135.00 to $155.00 and gave the company a “buy” rating in a report on Monday, September 21st. Evercore reaffirmed an “outperform” rating on shares of ServiceNow in a research report on Tuesday, October 13th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of ServiceNow in a research report on Tuesday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $152.71.

ServiceNow Stock Performance

NOW stock opened at $149.70 on Monday. The business’s 50-day moving average price is $136.01 and its two-hundred day moving average price is $114.34. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The firm has a market cap of $154.79 billion, a PE ratio of 93.56, a P/E/G ratio of 2.67 and a beta of 0.99. ServiceNow has a 1-year low of $81.24 and a 1-year high of $192.97.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The firm had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. During the same period in the previous year, the firm earned $0.81 earnings per share. The company’s revenue was up 24.0% on a year-over-year basis. As a group, research analysts forecast that ServiceNow will post 2.22 earnings per share for the current year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Jacqueline Canney sold 7,847 shares of ServiceNow stock in a transaction on 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 sale, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the sale, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 14,081 shares of company stock valued at $1,937,904. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently modified their holdings of NOW. Cornerstone Financial Management LLC grew its stake in shares of ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after buying an additional 107 shares during the last quarter. CrossGen Wealth LLC acquired a new position in shares of ServiceNow during the first quarter worth $29,000. Marquette Asset Management LLC lifted its stake in shares of ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock valued at $30,000 after acquiring an additional 129 shares during the last quarter. Kilter Group LLC bought a new position in shares of ServiceNow in the 2nd quarter valued at $31,000. Finally, Solstein Capital LLC bought a new position in shares of ServiceNow in the 2nd quarter valued at $35,000. Institutional investors own 87.18% of the company’s stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst support and upcoming earnings: BMO Capital Markets named ServiceNow a new Top Pick, while Bernstein raised its price target to $266 and Piper Sandler and TD Cowen also lifted targets. Investors are looking for evidence of continued customer upgrades and AI-driven growth in the third-quarter report expected October 28. These 2 software stocks are new Top Picks at BMO
• Positive Sentiment: AI monetization remains the central catalyst: ServiceNow is expanding zero-code AI-agent tools, governance capabilities and workflow automation across IT, human resources, customer service and other enterprise functions. Its recent quarter showed approximately 24% year-over-year revenue growth, supporting the argument that the company can convert AI demand into higher-margin software sales. ServiceNow Orchestrates AI’s Next Act—Can Earnings Deliver?
• Positive Sentiment: Technical momentum is improving: A bullish flag breakout and stronger moving-average structure could support a move through $154, with one forecast identifying a potential path toward $211 if resistance is cleared. ServiceNow Price Forecast: $154 Breakout Could Extend Recovery
• Positive Sentiment: ServiceNow expanded a partnership with Simplify Alpha to develop AI-powered, payer-specific solutions for health insurers, potentially opening another vertical for workflow and automation growth. Simplify Alpha Expands Partnership with ServiceNow
• Neutral Sentiment: ServiceNow was highlighted as a favored name in CNBC’s “Final Trades,” adding visibility among retail and professional investors. CNBC’s Final Trades
• Negative Sentiment: Risks include a premium valuation near 93 times trailing earnings, increased short interest, a current ratio below 1.0 and another round of San Diego sales-job cuts. These factors could limit upside if upcoming results fail to justify elevated expectations. ServiceNow cuts San Diego sales jobs

ServiceNow Company Profile

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.