ServiceNow (NYSE:NOW) Trading Down 9.8% on Analyst Downgrade

Shares of ServiceNow, Inc. (NYSE:NOW) fell 9.8% on Thursday after Macquarie lowered their price target on the stock from $172.00 to $140.00. Macquarie currently has a neutral rating on the stock. ServiceNow traded as low as $113.13 and last traded at $116.8670. 54,867,526 shares changed hands during mid-day trading, an increase of 253% from the average session volume of 15,551,361 shares. The stock had previously closed at $129.62.

NOW has been the topic of several other reports. Canaccord Genuity Group set a $200.00 price objective on ServiceNow in a research note on Thursday. KeyCorp dropped their price target on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating on the stock in a research report on Thursday. Stifel Nicolaus set a $180.00 price objective on shares of ServiceNow and gave the stock a “buy” rating in a research report on Thursday. TD Cowen reiterated a “buy” rating on shares of ServiceNow in a research note on Tuesday, January 20th. Finally, Zacks Research downgraded ServiceNow from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 11th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $194.79.

Insiders Place Their Bets

In other ServiceNow news, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total transaction of $431,735.76. Following the completion of the transaction, the insider directly owned 15,000 shares of the company’s stock, valued at approximately $2,481,240. This represents a 14.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Friday, November 28th. The shares were sold at an average price of $161.60, for a total value of $242,400.00. Following the completion of the sale, the director owned 47,930 shares in the company, valued at approximately $7,745,488. The trade was a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,310 shares of company stock valued at $2,533,585 in the last quarter. 0.34% of the stock is currently owned by company insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results topped expectations — EPS and revenue beat, subscription growth remained strong and management highlighted accelerating AI adoption that drove meaningful new business wins. NOW Q4 Earnings Beat
• Positive Sentiment: ServiceNow expanded AI partnerships (Anthropic, OpenAI) and positioned Now Assist as a growth driver — evidence management is monetizing generative AI across customers. Anthropic partnership
• Positive Sentiment: Board authorized an additional $5B for buybacks (including $2B accelerated), a shareholder-return action that reduces float and supports EPS. $5B buyback announcement
• Positive Sentiment: Insider/management confidence: CEO bought stock and committed to staying, which can reassure investors about long-term strategy execution. CEO stock purchase
• Neutral Sentiment: Company guided 2026 subscription revenue above some street estimates (company gave a range that exceeded consensus dollars), but the pace implies a modest deceleration from 2025 — mixed for valuation-sensitive investors. Guidance vs. estimates
• Negative Sentiment: Guidance flagged a slowdown in subscription revenue growth to roughly 19.5%–20.0% in 2026 (versus ~20.5% in 2025), triggering concern that growth is decelerating even as management highlights AI momentum. Guidance slowdown
• Negative Sentiment: High valuation leaves stock vulnerable to disappointment — several analysts trimmed targets and one major firm moved to underweight, which pressured sentiment. Analyst price-target changes
• Negative Sentiment: Broader software/AI rotation and headlines about AI disruption (SAP caution + sector weakness) amplified selling pressure across enterprise software, turning a mixed beat into a post-earnings selloff. Sector AI fears

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in shares of ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the period. State Street Corp boosted its holdings in ServiceNow by 1.4% in the 3rd quarter. State Street Corp now owns 9,454,699 shares of the information technology services provider’s stock valued at $8,700,970,000 after purchasing an additional 131,080 shares during the period. Nordea Investment Management AB grew its position in shares of ServiceNow by 388.7% during the 4th quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider’s stock valued at $720,325,000 after purchasing an additional 3,743,087 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of ServiceNow by 2.0% in the second quarter. Geode Capital Management LLC now owns 4,574,563 shares of the information technology services provider’s stock worth $4,684,445,000 after purchasing an additional 88,057 shares during the period. Finally, Pictet Asset Management Holding SA raised its position in shares of ServiceNow by 613.4% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,840,262 shares of the information technology services provider’s stock worth $588,326,000 after buying an additional 3,301,962 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow Stock Down 9.8%

The company has a 50 day moving average of $151.58 and a 200-day moving average of $171.79. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $121.35 billion, a P/E ratio of 70.66, a price-to-earnings-growth ratio of 2.27 and a beta of 0.98.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. ServiceNow had a return on equity of 18.74% and a net margin of 13.66%.The business had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.53 billion. During the same quarter in the prior year, the firm earned $0.73 earnings per share. The firm’s revenue was up 20.7% on a year-over-year basis. On average, equities analysts predict that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

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.