FY2027 EPS Estimates for ServiceNow Decreased by Analyst

ServiceNow, Inc. (NYSE:NOW) – Erste Group Bank decreased their FY2027 earnings per share (EPS) estimates for shares of ServiceNow in a research report issued to clients and investors on Wednesday, February 18th. Erste Group Bank analyst S. Lingnau now anticipates that the information technology services provider will earn $3.20 per share for the year, down from their prior forecast of $3.21. The consensus estimate for ServiceNow’s current full-year earnings is $8.93 per share.

Other analysts also recently issued research reports about the company. Capital One Financial lowered their target price on ServiceNow from $188.00 to $161.00 and set an “overweight” rating on the stock in a research report on Friday, January 16th. BMO Capital Markets lowered their price target on ServiceNow from $175.00 to $170.00 and set an “outperform” rating on the stock in a research report on Thursday, January 29th. Stifel Nicolaus set a $180.00 price objective on ServiceNow and gave the stock a “buy” rating in a research note on Thursday, January 29th. TD Cowen decreased their target price on shares of ServiceNow from $200.00 to $185.00 and set a “buy” rating for the company in a research note on Thursday, January 29th. Finally, JPMorgan Chase & Co. boosted their target price on shares of ServiceNow from $204.00 to $215.00 and gave the stock an “overweight” rating in a report on Thursday, October 30th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $192.06.

ServiceNow Stock Down 3.4%

Shares of NOW stock opened at $100.70 on Monday. The firm’s fifty day moving average price is $130.57 and its two-hundred day moving average price is $161.13. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. ServiceNow has a 1 year low of $98.00 and a 1 year high of $211.48. The firm has a market capitalization of $105.33 billion, a P/E ratio of 60.37, a PEG ratio of 1.76 and a beta of 0.98.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. During the same quarter in the previous year, the firm posted $0.73 earnings per share. The firm’s revenue for the quarter was up 20.7% on a year-over-year basis.

Institutional Trading of ServiceNow

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in shares of ServiceNow by 404.5% during 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 during the period. State Street Corp raised its position in ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley increased its stake in shares of ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after buying an additional 17,514,679 shares during the period. Institutional investors own 87.18% of the company’s stock.

Insider Activity at ServiceNow

In related news, CFO Gina Mastantuono sold 2,085 shares of ServiceNow stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $161.60, for a total transaction of $336,936.00. Following the completion of the sale, the chief financial officer directly owned 63,215 shares of the company’s stock, valued at approximately $10,215,544. This trade represents a 3.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Paul Fipps sold 9,641 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares in the company, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,526 shares of company stock valued at $2,467,814 in the last 90 days. Corporate insiders own 0.34% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow broadened its AI capabilities by acquiring Pyramid Analytics to strengthen analytics and data-science offerings, which supports longer?term revenue growth and product differentiation. ServiceNow Inc (NOW) Expands AI Strategy With Key Acquisitions
• Positive Sentiment: ServiceNow signed a multi?year partnership with TCS to scale enterprise AI workflows — a commercial partnership that can expand sales channels and customer deployments. TCS, ServiceNow enter multi-year partnership to scale enterprise AI adoption
• Positive Sentiment: Wedbush reinstated ServiceNow to its IVES AI 30 list and is bullish, arguing the recent sell?off in software names is overdone — a supportive analyst stance that can underpin upside when sentiment stabilizes. Here’s Why Wedbush is Bullish on ServiceNow, Inc. (NOW) Again
• Neutral Sentiment: Several media pieces (including buy?the?dip commentary) present ServiceNow as a long?term buy after recent weakness — helpful for investor context but not an immediate catalyst. Buy The Dip In ServiceNow Stock?
• Negative Sentiment: A viral research post and related commentary about AI risks spooked investors across multiple names and contributed to broad selling in tech and software — a sentiment shock that hit ServiceNow along with peers. Citrini’s ‘thought exercise’ on AI sparks selloff in Visa, DoorDash, others Viral Research Post On AI Risks Spooks Investors. DoorDash, American Express Among Stocks Taking A Hit.
• Negative Sentiment: Erste Group lowered FY2027 EPS estimates for ServiceNow, signaling analyst downward revisions to near?term earnings expectations. ServiceNow FY2027 EPS Estimate Lowered by Erste Group Bank
• Negative Sentiment: Recent reports flagged insider selling and noted trading pressure tied to those sales, which can weigh on sentiment even if not indicative of underlying fundamentals. ServiceNow (NYSE:NOW) Trading Down 2.9% on Insider Selling

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.