ServiceNow (NYSE:NOW) Trading 1.7% Higher – Should You Buy?

ServiceNow, Inc. (NYSE:NOW)’s share price traded up 1.7% during trading on Thursday . The stock traded as high as $129.75 and last traded at $127.0890. 22,867,361 shares traded hands during trading, a decline of 4% from the average daily volume of 23,872,461 shares. The stock had previously closed at $124.94.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s recent quarter exceeded expectations, with earnings and revenue ahead of consensus, revenue growth of about 24% year over year, and higher annual subscription-revenue expectations. The results reinforce the company’s growth outlook and help explain the renewed momentum in the shares. What’s Going On With ServiceNow
• Positive Sentiment: Analyst and market commentary remains constructive. Wells Fargo reportedly maintained a Buy rating while raising its price target to $175, while other analysts continue to cite ServiceNow’s AI-native security tools and roughly $1 billion annualized AI revenue run rate as potential long-term growth drivers. ServiceNow Stock Opinions on Analyst Upgrades and AI Initiatives
• Positive Sentiment: ServiceNow is being highlighted as a potentially undervalued AI and software-as-a-service growth stock. Its agentic-AI governance capabilities, larger customer contracts and strong free-cash-flow generation are viewed as evidence that enterprise AI adoption can support future expansion. Wall Street May Be Sleeping on This AI Growth Story
• Neutral Sentiment: A valuation comparison between Fujitsu and ServiceNow gives investors additional context, but does not represent a major new fundamental catalyst for NOW. FJTSY or NOW: Which Is the Better Value Stock Right Now?
• Negative Sentiment: Security researchers reported “City-Forum” data-theft attacks targeting Salesforce and ServiceNow portals. Although the report does not establish a ServiceNow breach, attacks involving its platform could increase customer-security concerns and support costs. City-Forum Data-Theft Attacks
• Negative Sentiment: An article said Claude AI sold its entire ServiceNow position after previously holding the stock. This is a small, algorithm-tracked portfolio signal rather than a company-specific fundamental development, but it may add short-term sentiment pressure. Claude AI Just Sold ServiceNow

Wall Street Analyst Weigh In

Several research firms have commented on NOW. HSBC lowered their price objective on ServiceNow from $226.00 to $171.00 and set a “buy” rating on the stock in a research report on Thursday, April 16th. Royal Bank Of Canada reissued an “outperform” rating and set a $130.00 price target on shares of ServiceNow in a report on Thursday, July 23rd. Weiss Ratings lowered shares of ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, July 10th. Evercore reaffirmed an “outperform” rating and issued a $160.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and a consensus target price of $143.76.

ServiceNow Stock Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The firm’s 50 day simple moving average is $106.70 and its 200-day simple moving average is $105.71. The company has a market cap of $131.41 billion, a price-to-earnings ratio of 79.43, a PEG ratio of 2.24 and a beta of 0.94.

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, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. ServiceNow’s quarterly revenue was up 24.0% on a year-over-year basis. On average, sell-side analysts predict that ServiceNow, Inc. will post 2.24 EPS for the current year.

Insider Activity at ServiceNow

In related news, 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 completion of the sale, the insider owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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. Corporate insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Millstone Evans Group LLC boosted its holdings in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC increased its holdings in shares of 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 buying an additional 135 shares during the last quarter. Blueline Advisors LLC purchased a new stake in shares of ServiceNow during the 4th quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC raised its position in shares of ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 140 shares during the period. Finally, Wealth Watch Advisors INC lifted its holdings in ServiceNow by 432.3% in the fourth quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 134 shares during the last quarter. Hedge funds and other institutional investors 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.