Pinnacle Associates Ltd. Acquires New Holdings in ServiceNow, Inc. $NOW

Pinnacle Associates Ltd. bought a new stake in ServiceNow, Inc. (NYSE:NOW) during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 25,501 shares of the information technology services provider’s stock, valued at approximately $3,417,000.

Several other hedge funds also recently modified their holdings of the stock. Cornerstone Financial Management LLC boosted its holdings in ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 107 shares during the last quarter. CrossGen Wealth LLC bought a new stake in shares of ServiceNow in the 1st quarter worth $29,000. Marquette Asset Management LLC grew its stake in shares of ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock worth $30,000 after acquiring an additional 129 shares in the last quarter. Kilter Group LLC purchased a new stake in shares of ServiceNow in the second quarter valued at about $31,000. Finally, Solstein Capital LLC purchased a new stake in shares of ServiceNow in the second quarter valued at about $35,000. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Insider Activity

In other news, insider Jacqueline Canney sold 7,847 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the insider owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the sale, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 14,081 shares of company stock valued at $1,937,904 in the last three months. Company insiders own 0.34% of the company’s stock.

ServiceNow Price Performance

NOW opened at $156.85 on Friday. The firm has a market cap of $162.18 billion, a P/E ratio of 98.03, a PEG ratio of 2.81 and a beta of 0.99. The firm has a 50-day moving average of $137.17 and a 200 day moving average of $115.08. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $192.97.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 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 net margin of 11.34% and a return on equity of 16.45%. The company’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.81 earnings per share. On average, research analysts expect that ServiceNow, Inc. will post 2.22 EPS for the current year.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: AI partnership expands product reach: ServiceNow and NVIDIA launched Arc, an enterprise AI agent designed to plan tasks and verify its work. The product reinforces ServiceNow’s positioning as an AI orchestration and workflow platform. ServiceNow and Nvidia launch Arc
• Positive Sentiment: AI demand is driving investor optimism: ServiceNow’s AI-related contract value reportedly exceeded $1 billion, while the stock has gained substantially over the past three months. The company’s shift toward usage-based “Assists” could increase revenue potential as customers deploy more AI agents. ServiceNow rallies as AI contract value tops $1 billion
• Positive Sentiment: Analyst support remains strong: Multiple firms raised their price targets ahead of earnings, including a Street-high $266 target from Bernstein. Polen Capital also highlighted ServiceNow as a company positioned to benefit from AI rather than suffer disruption. ServiceNow earnings outlook
• Neutral Sentiment: Earnings are the next catalyst: Investors are focused on the October 28 quarterly report. ServiceNow previously delivered revenue growth of 24% and an earnings beat, but current previews anticipate a possible single-digit earnings decline, raising the bar for another positive surprise. ServiceNow quarterly earnings preview
• Neutral Sentiment: Defense exposure received visibility: ServiceNow’s global defense and national security executive discussed the company’s activities at the AUSA 2026 conference, though the report did not disclose a material contract or financial impact. AUSA ServiceNow defense interview
• Negative Sentiment: Cash-flow and valuation concerns remain: Commentary warns that ServiceNow may need stronger cash flow to fund its AI expansion. With the shares trading at a high earnings multiple after a sharp run-up, any slowdown or weaker outlook could trigger profit-taking. ServiceNow cash-flow concerns
• Negative Sentiment: One notable bearish signal: Zacks Research downgraded ServiceNow from “hold” to “strong sell,” adding caution despite the broader analyst optimism. Zacks Research ratings

Analyst Upgrades and Downgrades

NOW has been the topic of a number of recent analyst reports. Weiss Ratings raised shares of ServiceNow from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Zacks Research downgraded shares of ServiceNow from a “hold” rating to a “strong sell” rating in a research report on Monday. UBS Group set a $165.00 price objective on shares of ServiceNow in a research note on Monday. Truist Financial set a $180.00 price objective on shares of ServiceNow and gave the company a “buy” rating in a research note on Wednesday. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of ServiceNow in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average target price of $153.90.

ServiceNow Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.