ServiceNow (NYSE:NOW) Trading Down 6% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW)’s share price dropped 6% during trading on Tuesday . The stock traded as low as $131.61 and last traded at $127.5930. Approximately 68,298,016 shares traded hands during mid-day trading, an increase of 130% from the average daily volume of 29,649,568 shares. The stock had previously closed at $135.6990.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow highlighted its AI and workflow automation story in two conference appearances at the Bank of America 2026 Global Technology Conference and the William Blair Growth Stock Conference, reinforcing the company’s growth narrative and product momentum. ServiceNow, Inc. (NOW) Presents at Bank of America 2026 Global Technology Conference Transcript
• Positive Sentiment: A MarketBeat piece argued that AI spending is benefiting ServiceNow as part of a broader “nuts and bolts” enterprise AI buildout, which supports the bull case for the stock. Marvell’s AI Moment Raises a Bigger Question for Amazon and ServiceNow (NOW)
• Positive Sentiment: Several recent articles framed ServiceNow as an attractive AI leader trading at a discount or as a stock the market may be underestimating, which could encourage dip-buying. ServiceNow: The Ultimate AI Control Tower Trading At A Discount
• Positive Sentiment: ServiceNow announced a $2.5 million grant to City Year to expand student success and AI-enabled operations, adding to the company’s reputation for strategic AI investment and community partnerships. City Year Receives $2.5M Grant from ServiceNow to Power Student Success and Build Future-Ready Talent Pipelines
• Positive Sentiment: The company deepened its Everbridge xMatters partnership to enhance AI-driven incident response and workflow orchestration, a move that may support future enterprise demand. ServiceNow Deepens Everbridge xMatters AI Ties In Critical Workflows
• Neutral Sentiment: Several new articles compared ServiceNow with peers like Salesforce, Palantir, and Intuit, keeping the stock in focus but not adding a clear new catalyst by themselves. Salesforce vs. ServiceNow: 1 AI Giant Is Leaving the Other Behind
• Negative Sentiment: ServiceNow also appeared in a wave of bearish commentary questioning SaaS valuations and arguing the stock may be less appealing after its sharp run-up, which can weigh on sentiment. ServiceNow: The More I Look, The Less Appealing It Feels
• Negative Sentiment: A broader software-sector selloff tied to AI uncertainty also hurt sentiment toward ServiceNow and other enterprise software names. Software stocks whipsaw amid AI fears, as Anthropic IPO looms

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on NOW shares. Piper Sandler lowered their target price on shares of ServiceNow from $200.00 to $140.00 and set an “overweight” rating for the company in a report on Thursday, April 23rd. JPMorgan Chase & Co. cut their price target on shares of ServiceNow from $195.00 to $145.00 and set an “overweight” rating on the stock in a research note on Thursday, April 23rd. Royal Bank Of Canada reissued an “outperform” rating and issued a $121.00 price target on shares of ServiceNow in a research report on Tuesday, May 5th. BTIG Research restated a “buy” rating and issued a $150.00 price objective on shares of ServiceNow in a research note on Monday, May 4th. Finally, Oppenheimer reaffirmed an “outperform” rating on shares of ServiceNow in a report on Tuesday, May 26th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and a consensus price target of $141.85.

ServiceNow Stock Performance

The firm’s 50-day moving average is $98.99 and its 200 day moving average is $122.45. The stock has a market cap of $121.51 billion, a PE ratio of 70.24, a P/E/G ratio of 2.11 and a beta of 0.94. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same period last year, the firm posted $0.81 EPS. As a group, research analysts anticipate that ServiceNow, Inc. will post 2.35 EPS for the current year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company’s stock, valued at $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 28,071 shares of company stock worth $2,529,956 over the last three months. 0.34% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Brighton Jones LLC raised its position 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 buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after acquiring an additional 34 shares in the last quarter. United Bank increased its stake in shares of ServiceNow by 15.5% during the second 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 during the period. Riggs Asset Managment Co. Inc. increased its stake in shares of ServiceNow by 2.2% during the second 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 during the period. Finally, Nebula Research & Development LLC raised its holdings in ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock worth $931,000 after purchasing an additional 609 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.