ServiceNow (NYSE:NOW) Given “Buy” Rating at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of ServiceNow (NYSE:NOW) in a report published on Thursday,Benzinga reports. The brokerage currently has a $155.00 price objective on the information technology services provider’s stock.

Other equities research analysts have also issued research reports about the stock. Guggenheim raised shares of ServiceNow from a “sell” rating to a “neutral” rating in a research note on Tuesday, December 16th. TD Cowen reaffirmed a “buy” rating on shares of ServiceNow in a research report on Tuesday, January 20th. Arete Research set a $200.00 price objective on ServiceNow in a report on Tuesday, January 6th. Morgan Stanley set a $263.00 price objective on ServiceNow and gave the company an “overweight” rating in a research note on Thursday, October 30th. Finally, Robert W. Baird decreased their target price on ServiceNow from $250.00 to $190.00 and set an “outperform” rating for the company in a research report on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $194.79.

ServiceNow Stock Down 9.8%

Shares of ServiceNow stock opened at $116.87 on Thursday. The firm has a market cap of $121.35 billion, a price-to-earnings ratio of 70.06, a P/E/G ratio of 2.23 and a beta of 0.98. The stock has a 50-day simple moving average of $150.71 and a 200-day simple moving average of $171.41. ServiceNow has a 52-week low of $113.13 and a 52-week high of $211.48. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 19.47%. The company’s revenue for the quarter was up 20.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.73 earnings per share. On average, equities research analysts expect that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jacqueline P. Canney sold 470 shares of the company’s stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total value of $77,745.52. Following the completion of the transaction, the insider directly owned 15,135 shares in the company, valued at approximately $2,503,571.16. This represents a 3.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Paul Fipps sold 1,525 shares of ServiceNow stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total transaction of $249,352.75. Following the sale, the insider owned 2,705 shares in the company, valued at $442,294.55. This represents a 36.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,310 shares of company stock valued at $2,533,585 in the last quarter. 0.34% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of NOW. Quadcap Wealth Management LLC boosted its stake in ServiceNow by 772.4% in the fourth quarter. Quadcap Wealth Management LLC now owns 4,955 shares of the information technology services provider’s stock worth $759,000 after purchasing an additional 4,387 shares in the last quarter. Comerica Bank lifted its position in ServiceNow by 363.9% during the 4th quarter. Comerica Bank now owns 192,146 shares of the information technology services provider’s stock worth $29,435,000 after buying an additional 150,729 shares in the last quarter. Eagle Wealth Advisors LLC bought a new stake in ServiceNow during the 4th quarter worth about $538,000. Ashton Thomas Private Wealth LLC increased its position in ServiceNow by 709.4% in the 4th quarter. Ashton Thomas Private Wealth LLC now owns 9,535 shares of the information technology services provider’s stock valued at $1,461,000 after acquiring an additional 8,357 shares in the last quarter. Finally, West Bancorporation Inc. raised its stake in shares of ServiceNow by 367.2% in the fourth quarter. West Bancorporation Inc. now owns 1,495 shares of the information technology services provider’s stock worth $229,000 after acquiring an additional 1,175 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat revenue and EPS estimates and management highlighted accelerating AI adoption (Now Assist usage, strong enterprise deals). NOW Q4 Earnings Beat Estimates
• Positive Sentiment: Board authorized an additional $5 billion repurchase program (including $2B accelerated), which should support EPS and offset dilution. Q4 Results & $5B Buyback
• Positive Sentiment: Expanded AI partnerships (Anthropic, OpenAI) and new large customer deployments (Fiserv, Panasonic) reinforce long‑term AI monetization potential. ServiceNow inks Anthropic deal
• Neutral Sentiment: Several firms reaffirm buy/overweight ratings (DA Davidson, Cantor Fitzgerald, BTIG, Needham, UBS) even as some adjust targets — showing conviction but varied views on valuation. Analyst coverage roundup
• Neutral Sentiment: Company reiterated a bullish 2026 outlook overall, but guidance contained nuances investors parsed closely (subscription revenue growth guidance mid-to-high teens vs. prior pace). Q4 release & guidance
• Negative Sentiment: Investors reacted to guidance that implies a modest deceleration in subscription growth (management guided ~19.5%–20.0% subscription growth for 2026), prompting concern about acceleration. ServiceNow guides to steeper slowdown
• Negative Sentiment: Wider market fear of AI disruption and a selloff in software names amplified the move; major headlines flagged a sectorwide slide and “bear market” language. US software stocks slide
• Negative Sentiment: Several analysts trimmed price targets (KeyCorp cut to $115/underweight, Macquarie cut to $140, others trimmed targets), adding downward pressure despite some buy ratings. Analyst target cuts

ServiceNow Company Profile

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.