ServiceNow (NYSE:NOW) Stock Price Down 3.9% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded down 3.9% on Friday . The stock traded as low as $98.34 and last traded at $99.5760. 18,038,862 shares changed hands during mid-day trading, a decline of 5% from the average session volume of 18,933,469 shares. The stock had previously closed at $103.64.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow expanded security and distribution partnerships to make AI agents safer for enterprise workloads — deals with Zenity (agent security/posture/vulnerability), deeper ties with Cohesity (data resilience) and Carahsoft (public-sector distribution) should reduce adoption risk and accelerate enterprise deployments. ServiceNow Partnerships Aim To Make AI Agents Safer For Enterprise Workloads
• Positive Sentiment: An institutional investor note highlights product growth as ServiceNow transforms into an AI‑powered enterprise platform — an endorsement from a large fund supports the narrative of durable revenue expansion. ServiceNow (NOW) Products See Growth Amid Transformation into AI-Powered Enterprise Platform
• Positive Sentiment: inMorphis was named ServiceNow Partner of the Year 2026 for Risk & Security in APAC — signals stronger regional go‑to‑market traction that can drive adoption and services revenue in growth markets. inMorphis Named as ServiceNow Partner of the Year 2026 – Risk & Security – Asia Pacific
• Positive Sentiment: Analyst coverage remains constructive — a Zacks piece reiterates ServiceNow’s profile as a strong growth stock based on style/growth metrics, which can underpin investor interest when sentiment stabilizes. Here’s Why ServiceNow (NOW) is a Strong Growth Stock
• Neutral Sentiment: Earnings season is the immediate catalyst — previews expect double‑digit earnings expansion for the upcoming quarter, so results and guidance will likely drive near‑term volatility. ServiceNow Earnings Preview: What to Expect
• Neutral Sentiment: Company messaging on “people‑first” AI enablement (HR and middle‑manager focus) shows ServiceNow pushing adoption via change management rather than purely technical sells — strategically important but not an immediate revenue swing. The Role of “AI Enablement” in HR
• Negative Sentiment: Broader market weakness and valuation worries are pressuring the stock — recent commentary questions whether current prices properly reflect growth vs. risk after a steep multi‑quarter decline from prior highs, increasing downside sensitivity into earnings. Has Market Weakness Created A Fresh Opening In ServiceNow (NOW) Stock?

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Truist Financial set a $175.00 price target on shares of ServiceNow in a research note on Thursday, February 5th. Needham & Company LLC restated a “buy” rating and set a $155.00 price objective on shares of ServiceNow in a research note on Thursday, February 5th. Argus raised shares of ServiceNow to a “strong-buy” rating in a report on Wednesday, February 4th. Robert W. Baird set a $175.00 target price on shares of ServiceNow in a report on Thursday, January 29th. Finally, Wall Street Zen downgraded shares of ServiceNow from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and a consensus target price of $192.61.

ServiceNow Stock Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. The stock’s 50-day simple moving average is $113.44 and its 200 day simple moving average is $150.90. The stock has a market capitalization of $104.16 billion, a P/E ratio of 59.70, a PEG ratio of 1.74 and a beta of 0.99.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. The company had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company’s revenue was up 20.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.73 earnings per share. Research analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 9,641 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the transaction, the insider directly owned 11,757 shares of the company’s stock, valued at $1,245,419.01. This represents a 45.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the sale, the insider owned 26,314 shares of the company’s stock, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 16,237 shares of company stock worth $1,697,162. Insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently made changes to their positions in the company. Focus Financial Network Inc. raised its position in ServiceNow by 286.1% during the fourth quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider’s stock valued at $8,219,000 after purchasing an additional 39,756 shares in the last quarter. Sei Investments Co. boosted its holdings in shares of ServiceNow by 7.1% in the 3rd quarter. Sei Investments Co. now owns 396,517 shares of the information technology services provider’s stock valued at $364,903,000 after purchasing an additional 26,241 shares in the last quarter. Jacobs & Co. CA increased its stake in shares of ServiceNow by 477.3% in the 4th quarter. Jacobs & Co. CA now owns 60,245 shares of the information technology services provider’s stock valued at $9,228,000 after purchasing an additional 49,809 shares during the last quarter. Temasek Holdings Private Ltd increased its stake in shares of ServiceNow by 29.8% in the 3rd quarter. Temasek Holdings Private Ltd now owns 117,005 shares of the information technology services provider’s stock valued at $107,677,000 after purchasing an additional 26,850 shares during the last quarter. Finally, Legacy Wealth Asset Management LLC raised its holdings in shares of ServiceNow by 428.0% during the 4th quarter. Legacy Wealth Asset Management LLC now owns 11,610 shares of the information technology services provider’s stock worth $1,779,000 after buying an additional 9,411 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

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.