ServiceNow (NYSE:NOW) Trading Down 1.1% – Here’s Why

ServiceNow, Inc. (NYSE:NOW)’s stock price was down 1.1% during trading on Tuesday . The company traded as low as $103.88 and last traded at $105.85. Approximately 27,059,431 shares were traded during trading, an increase of 32% from the average daily volume of 20,424,789 shares. The stock had previously closed at $107.08.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Senior insiders including CEO Bill McDermott completed open?market purchases (McDermott ~$3M) and several executives terminated 10b5?1 automated sale plans — a strong vote of confidence from management. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse
• Positive Sentiment: The board authorized a $5B buyback and the company immediately executed a $2B accelerated share repurchase (ASR), which reduces share count and boosts EPS near-term. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse
• Positive Sentiment: Analyst/market sentiment support: Needham maintained a Buy rating and several bullish writeups (Zacks, TipRanks) highlight long?term growth prospects and attractive valuation after the pullback. Needham Maintains a Buy Rating
• Positive Sentiment: Management is positioning ServiceNow as the governance layer for AI agents (the “AI Control Tower”), and the company highlights autonomous?work capabilities and recent M&A (e.g., Armis, Moveworks) to secure control, security and conversational interfaces. This supports recurring subscription economics even if seat counts change. ServiceNow bets big on autonomous work and AI control for 2026 growth
• Neutral Sentiment: Product update context: ServiceNow rolled out AI agents that can operate without human intervention — a capability that both drives platform relevance (governance need) and feeds the narrative around potential seat compression; impact will depend on adoption and pricing models. ServiceNow’s new AI agents can work without human intervention
• Negative Sentiment: Macro/sector pressure: a broad “SaaSpocalypse” narrative — fear that AI will compress software seat counts and recurring license revenue — is driving heavy selling across enterprise software names and is the primary reason NOW shares have declined. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse

Analyst Ratings Changes

Several research firms have recently commented on NOW. Wells Fargo & Company set a $225.00 price target on shares of ServiceNow and gave the company an “overweight” rating in a research note on Thursday, January 8th. The Goldman Sachs Group set a $216.00 price objective on ServiceNow in a report on Monday, February 2nd. Barclays lifted their target price on ServiceNow from $242.00 to $245.00 and gave the company an “overweight” rating in a research note on Thursday, October 30th. Piper Sandler restated an “overweight” rating on shares of ServiceNow in a research report on Thursday, January 29th. Finally, Evercore reiterated an “outperform” rating and issued a $175.00 price target (down previously from $225.00) on shares of ServiceNow in a report on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and an average price target of $192.06.

ServiceNow Trading Down 1.1%

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $110.72 billion, a P/E ratio of 53.27, a price-to-earnings-growth ratio of 1.81 and a beta of 0.97. The company has a fifty day simple moving average of $136.87 and a two-hundred day simple moving average of $163.80.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The firm had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.53 billion. During the same period last year, the company posted $0.73 EPS. The business’s quarterly revenue was up 20.7% on a year-over-year basis. On average, sell-side analysts expect that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Activity at ServiceNow

In related news, Director Lawrence Jackson sold 1,325 shares of ServiceNow stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $162.04, for a total value of $214,708.30. Following the sale, the director owned 1,615 shares of the company’s stock, valued at approximately $261,701.06. This trade represents a 45.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider directly owned 26,314 shares of the company’s stock, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 9,885 shares of company stock valued at $1,446,543. 0.34% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in NOW. Brady Martz Wealth Solutions LLC grew its stake in shares of ServiceNow by 1.3% in the third quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock valued at $775,000 after acquiring an additional 11 shares in the last quarter. Magnus Financial Group LLC increased its stake in shares of ServiceNow by 1.9% in the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock valued at $542,000 after purchasing an additional 11 shares during the last quarter. Avidian Wealth Enterprises LLC raised its stake in ServiceNow by 2.5% during the third quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock worth $417,000 after acquiring an additional 11 shares in the last quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its position in ServiceNow by 2.1% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 575 shares of the information technology services provider’s stock worth $591,000 after purchasing an additional 12 shares in the last quarter. Finally, Traveka Wealth LLC increased its holdings in shares of ServiceNow by 3.8% during the third quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider’s stock worth $304,000 after buying an additional 12 shares in the last quarter. Institutional investors and hedge funds 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.