ServiceNow (NYSE:NOW) Stock Price Down 2.4% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW)’s share price dropped 2.4% during trading on Wednesday . The stock traded as low as $130.85 and last traded at $131.04. 10,261,993 shares traded hands during trading, a decline of 56% from the average session volume of 23,173,057 shares. The stock had previously closed at $134.21.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is acquiring Sweep, a move intended to strengthen its sales and customer-relationship management capabilities and sharpen its competitive challenge to Salesforce. Financial terms and the expected earnings impact were not disclosed. ServiceNow Sharpens Its Salesforce Attack With Sweep Acquisition
• Positive Sentiment: BTIG Research raised its ServiceNow price target to $170 from $150 and maintained a “buy” rating, reflecting continued confidence in the company’s AI opportunity and subscription growth. BTIG price target update
• Positive Sentiment: ServiceNow was named a finalist for the AFP 2026 Pinnacle Awards alongside Bandwidth and Google, providing external recognition of its financial-professional technology capabilities. AFP 2026 Pinnacle Awards finalists
• Positive Sentiment: Deloitte’s recognition as a leader in ServiceNow implementation services supports the broader ecosystem around NOW and may help validate demand for ServiceNow-based AI transformations. Deloitte ServiceNow implementation-services recognition
• Neutral Sentiment: ServiceNow is attracting substantial investor attention, with analysts highlighting strong AI and subscription growth but also noting stiff competition, potential margin pressure and a premium valuation. ServiceNow buy, sell or hold analysis
• Negative Sentiment: Recent reports note that ServiceNow insiders have recorded sales but no open-market purchases over the past six months, a potential signal that may weigh on sentiment. Institutional positioning was also mixed, with major investors both adding and reducing holdings. ServiceNow valuation and trading activity

Analyst Upgrades and Downgrades

A number of equities analysts have commented on NOW shares. Wells Fargo & Company reissued an “overweight” rating and issued a $175.00 price target (up from $160.00) on shares of ServiceNow in a research note on Wednesday, August 12th. Needham & Company LLC reissued a “buy” rating and issued a $115.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. TD Cowen restated a “buy” rating and set a $140.00 price target on shares of ServiceNow in a research report on Monday, August 17th. Piper Sandler reaffirmed an “overweight” rating and set a $140.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. Finally, Evercore reiterated an “outperform” rating and issued a $160.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and an average price target of $144.73.

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 business has a 50 day moving average price of $118.73 and a two-hundred day moving average price of $108.39. The company has a market cap of $135.50 billion, a P/E ratio of 81.90, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.ServiceNow’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same period last year, the company earned $0.81 EPS. On average, sell-side analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Insider Transactions at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company’s stock, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares of the company’s stock, valued at $4,145,796. The trade was a 20.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 14,081 shares of company stock worth $1,937,904. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System increased its stake in shares of ServiceNow by 9,980.9% during the second quarter. California State Teachers Retirement System now owns 154,496,061 shares of the information technology services provider’s stock valued at $15,338,369,000 after buying an additional 152,963,494 shares during the period. BlackRock Inc. purchased a new stake in ServiceNow in the second quarter worth $9,536,615,000. State Street Corp lifted its stake 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 worth $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in ServiceNow by 371.0% in 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 acquiring an additional 25,517,218 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company’s products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.