ServiceNow’s (NOW) Buy Rating Reiterated at DA Davidson

DA Davidson reaffirmed their buy rating on shares of ServiceNow (NYSE:NOW) in a report published on Thursday, MarketBeat Ratings reports. They currently have a $220.00 price target on the information technology services provider’s stock.

A number of other research firms have also weighed in on NOW. Morgan Stanley set a $263.00 price target on ServiceNow and gave the company an “overweight” rating in a research report on Thursday, October 30th. Royal Bank Of Canada reduced their price objective on shares of ServiceNow from $195.00 to $185.00 and set an “outperform” rating for the company in a research note on Thursday. Deutsche Bank Aktiengesellschaft set a $180.00 target price on shares of ServiceNow in a research report on Thursday. Barclays boosted their price target on shares of ServiceNow from $242.00 to $245.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. Finally, Citigroup decreased their price objective on shares of ServiceNow from $250.60 to $235.00 and set a “buy” rating for the company in a research note on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, ServiceNow currently has an average rating of “Moderate Buy” and a consensus target price of $194.47.

ServiceNow Trading Down 0.0%

ServiceNow stock opened at $116.73 on Thursday. ServiceNow has a 12-month low of $113.13 and a 12-month high of $211.48. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.06. The stock has a market capitalization of $121.21 billion, a PE ratio of 69.98, a price-to-earnings-growth ratio of 2.01 and a beta of 0.98. The firm has a 50 day simple moving average of $149.79 and a 200-day simple moving average of $170.74.

ServiceNow (NYSE:NOW) last announced its earnings results 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. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. During the same quarter last year, the business posted $0.73 earnings per share. The company’s quarterly revenue was up 20.7% on a year-over-year basis. As a group, equities research analysts expect that ServiceNow will post 8.93 EPS for the current fiscal year.

Insider Activity at ServiceNow

In related news, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total value of $431,735.76. Following the transaction, the insider directly owned 15,000 shares of the company’s stock, valued at approximately $2,481,240. This trade represents a 14.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Fipps sold 1,525 shares of the stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total value of $249,352.75. Following the transaction, the insider owned 2,705 shares in the company, valued at approximately $442,294.55. This trade represents a 36.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 15,310 shares of company stock valued at $2,533,585. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in ServiceNow by 404.5% in the 4th 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 in the last quarter. Jennison Associates LLC increased its position in shares of ServiceNow by 280.1% during the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider’s stock valued at $1,291,758,000 after purchasing an additional 6,213,762 shares during the period. Nordea Investment Management AB raised its stake in shares of ServiceNow by 388.7% in the fourth 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. Pictet Asset Management Holding SA lifted its position in 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 purchasing an additional 3,301,962 shares during the period. Finally, Norges Bank bought a new position in ServiceNow in the second quarter worth $2,589,235,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat expectations — EPS and revenue topped street estimates and subscription revenue grew >20%, showing continued demand and AI adoption. Earnings Beat
• Positive Sentiment: Board authorized a $5B buyback (including $2B accelerated), which is supportive for EPS and signals management confidence. Buyback
• Positive Sentiment: Strong AI product traction and partnerships (Anthropic, OpenAI integrations) underpin longer-term growth potential and enterprise adoption. AI Partnerships
• Neutral Sentiment: Analyst reactions are mixed: several firms (DA Davidson, Cantor, BTIG, Needham) reiterated/maintained buy or overweight ratings and raised/kept targets, while others cut targets or downgraded — leaving a wide range of price targets and sentiment dispersion. Analyst Notes
• Neutral Sentiment: Unusually large options volume was reported, indicating speculative/moderately aggressive trading that can amplify intraday moves (uncertain directional implication). Options Activity
• Negative Sentiment: Guidance signaled a slowdown: management forecast subscription growth for FY26 that implies deceleration from 2025 levels — investors viewed this as a notable deceleration risk. Guidance/Slowdown
• Negative Sentiment: Broader sector and AI disruption fears triggered a sell-off in software names; commentary highlighted multiple compression and concerns competition from new AI entrants could hurt growth/valuation. Sector/AI Fears
• Negative Sentiment: Some firms cut price targets sharply (KeyCorp to $115, Macquarie to $140), reflecting concern over valuation and near?term execution — that contributed to downward pressure. Price Target Cuts

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.