Stock Traders Purchase High Volume of ServiceNow Call Options (NYSE:NOW)

ServiceNow, Inc. (NYSE:NOW) was the recipient of some unusual options trading activity on Thursday. Traders bought 179,416 call options on the stock. This represents an increase of approximately 17% compared to the average daily volume of 153,597 call options.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow delivered Q2 earnings of $0.90 per share on revenue of $3.99 billion, both ahead of estimates, with subscription revenue up 24.5% year over year. ServiceNow Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year subscription revenue forecast again, signaling that AI-powered workflow demand is translating into stronger bookings and long-term growth visibility. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: Management said AI contract value surpassed the $1 billion mark, a key milestone that supports the bullish view that ServiceNow’s AI products are becoming a meaningful growth driver. ServiceNow AI Contract Value Crosses $1 Billion Milestone, Stock Soars
• Positive Sentiment: Several analysts turned more constructive after earnings, including Baird, RBC, BTIG, Piper Sandler, Needham and BMO, with multiple price-target increases pointing to continued upside potential. ServiceNow Posts Robust Q2 As AI Momentum Continues To Build
• Neutral Sentiment: There was also notable options activity, with traders buying more call options than usual, suggesting elevated expectations for continued post-earnings volatility.
• Negative Sentiment: Some articles noted that shares had been under pressure earlier in the year as investors worried AI could disrupt legacy software vendors, so part of the move reflects relief rather than a full reset in sentiment. Why ServiceNow Stock Was Slipping Today

ServiceNow Stock Performance

Shares of NYSE NOW traded down $1.52 during midday trading on Thursday, hitting $93.94. The company’s stock had a trading volume of 32,069,637 shares, compared to its average volume of 23,763,428. The stock has a fifty day moving average price of $104.67 and a 200 day moving average price of $108.16. ServiceNow has a one year low of $81.24 and a one year high of $210.20. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $96.86 billion, a price-to-earnings ratio of 55.92, a P/E/G ratio of 1.71 and a beta of 0.96.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period last year, the firm earned $0.81 EPS. ServiceNow’s revenue for the quarter was up 24.0% on a year-over-year basis. On average, research analysts forecast that ServiceNow will post 2.33 EPS for the current fiscal year.

Insider Activity

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This trade represents a 3.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jacqueline P. Canney sold 8,927 shares of the business’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares in the company, valued at $2,645,977.60. The trade was a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 28,071 shares of company stock worth $2,529,956. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Large investors have recently made changes to their positions in the stock. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow during the third quarter valued at about $29,000. Kelleher Financial Advisors bought a new position in shares of ServiceNow in the third quarter valued at approximately $50,000. Pin Oak Investment Advisors Inc. grew its stake in ServiceNow by 20.7% during the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock valued at $123,000 after acquiring an additional 23 shares in the last quarter. Jupiter Wealth Management LLC purchased a new position in ServiceNow during the second quarter valued at approximately $154,000. Finally, CBIZ Investment Advisory Services LLC increased its holdings in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 135 shares during the period. 87.18% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on NOW. DA Davidson set a $170.00 target price on ServiceNow and gave the company a “buy” rating in a research report on Monday. Barclays restated an “overweight” rating and set a $134.00 price target (up from $132.00) on shares of ServiceNow in a research report on Tuesday, May 5th. Piper Sandler reaffirmed an “overweight” rating and issued a $140.00 price objective on shares of ServiceNow in a research report on Thursday. Truist Financial boosted their target price on shares of ServiceNow from $120.00 to $130.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Finally, Wolfe Research set a $125.00 target price on shares of ServiceNow in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $142.98.

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.