ServiceNow (NYSE:NOW) Shares Down 5.7% – Here’s Why

ServiceNow, Inc. (NYSE:NOW)’s share price traded down 5.7% during trading on Tuesday . The company traded as low as $102.61 and last traded at $104.8960. Approximately 22,846,464 shares traded hands during trading, a decline of 4% from the average daily volume of 23,749,275 shares. The stock had previously closed at $111.26.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: UBS raised its price target on ServiceNow to $115 from $100, keeping a neutral rating and signaling roughly 10% upside from the recent share price. Article: ServiceNow (NOW) PT Raised to $115 at UBS as Demand Trends Appear Stable
• Positive Sentiment: ServiceNow appears to be strengthening its AI monetization strategy, with reports that it is raising Now Assist AI contract targets and positioning AI as a premium add-on across its workflow products. Article: ServiceNow (NOW) Is Raising Its AI Targets As Investors Shift Toward Software
• Positive Sentiment: New ecosystem activity around the ServiceNow platform, including a ServiceNow-native FedRAMP 20x compliance app and a new GSA enterprise IT award tied to AI-enabled modernization, highlights continued partner demand for the platform. Article: C1Secure Launches SmartRAMP 20x, a ServiceNow-Native Platform Built for the FedRAMP 20x Model
• Neutral Sentiment: Several commentary pieces argued that ServiceNow’s AI opportunity could be a long-term positive, but another article noted the stock is not the cheapest software name and may face valuation pressure. Article: ServiceNow: AI Is An Opportunity, Not A Threat
• Neutral Sentiment: Analysts and market watchers have also framed the move as part of a broader rotation in software stocks rather than a change in ServiceNow’s fundamental outlook. Article: NOW, ACN: Why Are ServiceNow and Accenture Stocks Falling Today, 7/14/26?
• Negative Sentiment: IBM’s weaker-than-expected preliminary second-quarter results and revenue warning triggered a selloff across tech and enterprise software shares, dragging ServiceNow lower with the sector. Article: IBM Plunge Triggers Tech Stock Selloff After Revenue Miss Warning
• Negative Sentiment: Some market commentary also pointed to margin pressure from acquisitions as a concern versus peers, which could weigh on sentiment toward NOW. Article: ServiceNow vs. Atlassian: Which Cloud Software Stock Has an Edge?

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on NOW. HSBC cut their price target on shares of ServiceNow from $226.00 to $171.00 and set a “buy” rating on the stock in a report on Thursday, April 16th. Oppenheimer reaffirmed an “outperform” rating on shares of ServiceNow in a research note on Tuesday, May 26th. Stifel Nicolaus reduced their price target on shares of ServiceNow from $135.00 to $120.00 and set a “buy” rating on the stock in a research report on Thursday, April 23rd. Cantor Fitzgerald set a $130.00 price target on shares of ServiceNow in a research note on Monday, June 15th. Finally, Argus lowered their price objective on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating for the company in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $140.60.

ServiceNow Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $108.15 billion, a P/E ratio of 62.51, a PEG ratio of 1.79 and a beta of 0.96. The business has a 50-day moving average price of $102.95 and a 200 day moving average price of $110.65.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter last year, the company earned $0.81 EPS. The firm’s revenue for the quarter was up 22.1% on a year-over-year basis. As a group, sell-side analysts forecast that ServiceNow, Inc. will post 2.34 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the transaction, the director owned 44,930 shares of the company’s stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their position. The transaction was disclosed in a document filed 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 stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This trade represents a 23.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 28,071 shares of company stock worth $2,529,956 in the last 90 days. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in shares of ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after purchasing an additional 30 shares in the last quarter. Sivia Capital Partners LLC raised its position in ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after buying an additional 34 shares during the last quarter. United Bank lifted its stake in ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock valued at $1,562,000 after acquiring an additional 204 shares during the period. Riggs Asset Managment Co. Inc. boosted its holdings in shares of ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock valued at $1,976,000 after acquiring an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC boosted its holdings in shares of ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after acquiring an additional 609 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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.