FY2027 EPS Estimates for ServiceNow Cut by Erste Group Bank

ServiceNow, Inc. (NYSE:NOW) – Equities researchers at Erste Group Bank reduced their FY2027 earnings estimates for shares of ServiceNow in a research note issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now expects that the information technology services provider will post earnings of $3.19 per share for the year, down from their previous estimate of $3.20. The consensus estimate for ServiceNow’s current full-year earnings is $8.93 per share.

Several other equities analysts have also recently issued reports on the company. KeyCorp decreased their price objective on ServiceNow from $155.00 to $115.00 and set an “underweight” rating for the company in a report on Thursday, January 29th. DZ Bank raised ServiceNow to a “strong-buy” rating in a report on Thursday, December 18th. HSBC decreased their price objective on ServiceNow from $266.40 to $226.00 and set a “buy” rating for the company in a report on Friday, January 30th. Robert W. Baird set a $175.00 price objective on ServiceNow in a report on Thursday, January 29th. Finally, Macquarie Infrastructure decreased their price objective on ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a report on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $187.46.

ServiceNow Stock Performance

Shares of NYSE NOW opened at $100.36 on Wednesday. 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 12 month low of $98.00 and a 12 month high of $211.48. The company has a 50 day simple moving average of $109.13 and a two-hundred day simple moving average of $145.54. The stock has a market cap of $104.97 billion, a price-to-earnings ratio of 60.17, a PEG ratio of 1.71 and a beta of 1.01.

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, beating 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 business had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. During the same period in the previous year, the business posted $0.73 EPS. The business’s quarterly revenue was up 20.7% compared to the same quarter last year.

Insider Buying and Selling

In related news, insider Paul Fipps sold 9,641 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was 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 owned 11,757 shares of the company’s stock, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director owned 46,430 shares of the company’s stock, valued at $4,697,323.10. This represents a 3.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 16,237 shares of company stock valued at $1,697,162. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently added to or reduced their stakes in NOW. Cohen Klingenstein LLC increased its position in ServiceNow by 400.0% during the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock worth $1,532,000 after purchasing an additional 8,000 shares during the last quarter. Focus Financial Network Inc. increased its position in ServiceNow by 286.1% during the fourth quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider’s stock worth $8,219,000 after purchasing an additional 39,756 shares during the last quarter. Brookstone Capital Management increased its position in ServiceNow by 428.0% during the fourth quarter. Brookstone Capital Management now owns 91,158 shares of the information technology services provider’s stock worth $13,964,000 after purchasing an additional 73,894 shares during the last quarter. Beacon Investment Advisory Services Inc. increased its position in ServiceNow by 299.4% during the fourth quarter. Beacon Investment Advisory Services Inc. now owns 49,283 shares of the information technology services provider’s stock worth $7,550,000 after purchasing an additional 36,944 shares during the last quarter. Finally, Legacy Wealth Asset Management LLC increased its position in ServiceNow by 428.0% during the fourth quarter. Legacy Wealth Asset Management LLC now owns 11,610 shares of the information technology services provider’s stock worth $1,779,000 after purchasing an additional 9,411 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: DXC announced a multi-year agreement to use the ServiceNow AI Platform to accelerate enterprise AI adoption and modernization — a material commercial win that supports pipeline and long-term revenue scaling. DXC Partners with ServiceNow
• Positive Sentiment: Naitiv launched as an AI-native ServiceNow consultancy led by former ServiceNow executives; the new partner targets insurance-scale AI transformations, expanding the ServiceNow partner ecosystem and potential implementation demand. Naitiv Launches
• Positive Sentiment: CNBC’s Trade Tracker shows portfolio manager Stephanie Link buying more ServiceNow — a visible buy by an active manager that can signal conviction to other investors. Trade Tracker: Stephanie Link buys
• Neutral Sentiment: Coverage pieces (Yahoo/Seeking Alpha/MSN) debate whether the pullback makes NOW undervalued — these analyses keep the valuation discussion top-of-mind for investors but don’t move fundamentals immediately. Assessing Whether ServiceNow Still Looks Undervalued
• Neutral Sentiment: Commentary notes value managers are still holding names like ServiceNow despite AI-related concerns — a signal that some long-term holders remain, which can limit downside but also slow rebounds. Value investors still holding
• Negative Sentiment: BTIG trimmed its price target to $185 from $200 while keeping a Buy — the cut signals analyst scrutiny of FY26 revenue guidance and reduces the cushion investors price in. BTIG price target cut
• Negative Sentiment: Goldman Sachs lowered its target from $216 to $188 while maintaining a Buy — another large-house reduction that can pressure sentiment and amplify selling from momentum-focused investors. Goldman Sachs adjusts price target
• Negative Sentiment: Stifel and other outlets have become more cautious (while some keep Buy ratings), highlighting near-term execution and AI revenue-mix risk — a tone shift that can reduce conviction among shorter-term holders. Why Stifel Turned More Cautious
• Negative Sentiment: Report that CEO compensation jumped nearly 40% in 2025 (The Information) may create governance/optics concerns for some institutional holders. CEO compensation jump

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.