ServiceNow (NYSE:NOW) Shares Up 7.5% on Analyst Upgrade

ServiceNow, Inc. (NYSE:NOW) shot up 7.5% during mid-day trading on Monday after Needham & Company LLC raised their price target on the stock from $115.00 to $155.00. Needham & Company LLC currently has a buy rating on the stock. ServiceNow traded as high as $143.19 and last traded at $142.4920. Approximately 17,283,751 shares traded hands during trading, a decline of 25% from the average session volume of 23,015,396 shares. The stock had previously closed at $132.53.

Several other research analysts have also recently issued reports on NOW. Cantor Fitzgerald upped their target price on shares of ServiceNow from $122.00 to $141.00 and gave the stock an “overweight” rating in a research note on Monday, July 20th. Truist Financial raised their price target on shares of ServiceNow from $120.00 to $130.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. BTIG Research boosted their price objective on shares of ServiceNow from $150.00 to $170.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. Morgan Stanley set a $180.00 price objective on ServiceNow in a research report on Tuesday, July 21st. Finally, TD Cowen reiterated a “buy” rating and set a $140.00 target price on shares of ServiceNow in a research note on Monday, August 17th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $145.71.

Insider Buying and Selling at ServiceNow

In other news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider directly owned 18,305 shares of the company’s stock, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Paul Chamberlain sold 2,700 shares of the business’s stock in a transaction that occurred 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 owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 14,081 shares of company stock valued at $1,937,904. Company insiders own 0.34% of the company’s stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts raised price targets. Several Wall Street firms increased their targets for ServiceNow, helping support the stock and signaling continued confidence in its enterprise software and AI growth outlook. ServiceNow Shares Rise 2.6% After Analysts Raise Price Targets
• Positive Sentiment: AI-related growth remains a major catalyst. ServiceNow reported that its AI products surpassed $1 billion in annual contract value during the second quarter of 2026. One analysis projects that figure could reach $3 billion before 2029, implying roughly 55% annual growth if achieved. Prediction: ServiceNow’s AI Business Triples Before 2029
• Positive Sentiment: Software stocks are benefiting from a market rotation. Fresh warnings from AI executives about the risks of advancing AI capabilities appear to have eased the immediate “SaaS extinction” narrative, while investors moved toward established software companies including ServiceNow, Adobe and Salesforce. ServiceNow Stock Rises as the SaaS-Pocalypse Fear Reverses Course
• Positive Sentiment: Partner ecosystem expansion provides incremental support. Adaptiva joined the ServiceNow Build Partner Program, broadening access to its endpoint-management integration with ServiceNow’s Configuration Management Database. Adaptiva Joins ServiceNow Build Partner Program
• Neutral Sentiment: Needham is weighing whether the rally leaves sufficient upside, and a comparison with Palantir highlights ServiceNow’s more established enterprise model but also its premium valuation. ServiceNow’s elevated earnings multiple means strong AI execution is likely required to justify further gains. ServiceNow Stock Is Surging: Is Now a Good Time to Buy?
• Negative Sentiment: Investors remain alert to the risk that increasingly capable AI agents could pressure traditional SaaS pricing and demand. That concern previously contributed to a sharp decline in ServiceNow shares and remains the key threat to the bullish thesis. GPT-6 Astra Wiped 4%-5% Off Salesforce and ServiceNow

Institutional Trading of ServiceNow

A number of hedge funds and other institutional investors have recently modified their holdings of the company. California State Teachers Retirement System raised its holdings in 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 acquiring an additional 152,963,494 shares during the period. BlackRock Inc. bought a new position in shares of ServiceNow in the second quarter worth about $9,536,615,000. State Street Corp grew its position in shares of ServiceNow by 406.6% during 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 purchasing an additional 38,441,898 shares in the last quarter. Geode Capital Management LLC grew its position 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 in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in ServiceNow by 16.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,638,071 shares of the information technology services provider’s stock valued at $1,651,828,000 after purchasing an additional 2,362,606 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Price Performance

The firm has a 50 day moving average of $120.27 and a 200-day moving average of $108.97. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $147.34 billion, a P/E ratio of 89.06, a P/E/G ratio of 2.43 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 for the quarter, topping the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.81 EPS. On average, equities research analysts predict that ServiceNow, Inc. will post 2.22 EPS for the current year.

About ServiceNow

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.