ServiceNow (NYSE:NOW) Shares Up 7% – Should You Buy?

ServiceNow, Inc. (NYSE:NOW) shot up 7% during trading on Monday . The company traded as high as $108.15 and last traded at $105.7110. 32,363,999 shares changed hands during trading, an increase of 35% from the average session volume of 23,966,031 shares. The stock had previously closed at $98.78.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Broad software-sector rebound: ServiceNow participated in a coordinated recovery across enterprise software stocks as investors shifted back toward established companies positioned to benefit from AI adoption. Salesforce, ServiceNow and Workday rebound on AI rotation
• Positive Sentiment: Growth and guidance remain key catalysts: Recent coverage highlights accelerating revenue, a roughly 25% increase in subscription revenue, and management’s higher full-year outlook. ServiceNow’s latest reported quarter also exceeded consensus on both revenue and adjusted earnings, with revenue growing 24% year over year. ServiceNow revenue growth is accelerating
• Positive Sentiment: AI execution and partnerships: Analysts and bullish investors point to rising agentic-AI adoption, stronger net new annual contract value, cross-selling, and opportunities in security and risk. A multiyear TeamViewer partnership and expanded use of ServiceNow’s AI Platform by Experian provide additional evidence of enterprise demand. ServiceNow partners with TeamViewer and expands Experian deployment
• Positive Sentiment: Analyst sentiment is supportive: A recent analyst upgrade and an average brokerage rating equivalent to “Buy” are helping reinforce the view that the selloff may have created a long-term entry opportunity. ServiceNow stock rises after analyst upgrade
• Neutral Sentiment: Valuation remains debated: Bullish commentary describes NOW as an inexpensive SaaS leader after its decline, while other coverage cautions that investors must weigh its valuation against execution and continued AI-related uncertainty. ServiceNow as an enterprise AI bargain
• Negative Sentiment: Risks remain: Prior selling reflected fears that generative AI could disrupt traditional software models. The optimistic analyst consensus may also be a less reliable signal if expectations are already elevated, leaving the stock vulnerable to slower growth or weaker AI monetization. Broker recommendations for ServiceNow

Wall Street Analyst Weigh In

A number of research firms recently issued reports on NOW. Citizens Jmp reiterated a “market outperform” rating and issued a $157.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Mizuho decreased their price target on shares of ServiceNow from $150.00 to $140.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Morgan Stanley set a $180.00 price target on ServiceNow in a research report on Tuesday, July 21st. Truist Financial lifted their price objective on ServiceNow from $120.00 to $130.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Finally, Stifel Nicolaus cut their price objective on ServiceNow from $135.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $143.39.

ServiceNow Stock Up 7.0%

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 company has a market capitalization of $109.31 billion, a price-to-earnings ratio of 66.07, a price-to-earnings-growth ratio of 1.67 and a beta of 0.96. The firm’s 50-day simple moving average is $104.77 and its 200-day simple moving average is $107.42.

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, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. During the same quarter in the prior year, the business earned $0.81 earnings per share. The firm’s revenue for the quarter was up 24.0% on a year-over-year basis. Sell-side analysts forecast that ServiceNow, Inc. will post 2.33 earnings per share for the current year.

Insider Transactions at ServiceNow

In other news, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares of the company’s stock, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its position in ServiceNow by 404.5% in the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares in the last quarter. State Street Corp boosted its holdings in 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 valued at $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of ServiceNow by 371.0% in the 4th 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 during the period. Geode Capital Management LLC lifted its position in shares of ServiceNow by 404.8% during the 4th 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 buying an additional 18,854,775 shares during the period. Finally, Morgan Stanley boosted its stake in ServiceNow by 335.6% in the 4th 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 in the last quarter. 87.18% of the stock is owned by institutional investors.

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.