ServiceNow (NYSE:NOW) Reaches New 1-Year Low After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) shares reached a new 52-week low during trading on Thursday after Macquarie lowered their price target on the stock from $172.00 to $140.00. Macquarie currently has a neutral rating on the stock. ServiceNow traded as low as $121.30 and last traded at $116.9620, with a volume of 2382671 shares changing hands. The stock had previously closed at $129.62.

A number of other brokerages have also issued reports on NOW. DA Davidson reissued a “buy” rating and issued a $220.00 target price on shares of ServiceNow in a research report on Thursday. The Goldman Sachs Group cut ServiceNow from a “buy” rating to a “sell” rating in a research note on Monday, January 12th. Zacks Research downgraded ServiceNow from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 11th. Evercore ISI restated an “outperform” rating and set a $175.00 target price (down from $225.00) on shares of ServiceNow in a report on Thursday. Finally, UBS Group set a $115.00 target price on ServiceNow in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $194.79.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 1,525 shares of the company’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total transaction of $249,352.75. Following the sale, the insider directly owned 2,705 shares in the company, valued at approximately $442,294.55. This represents a 36.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lawrence Jackson sold 1,325 shares of the firm’s stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $162.04, for a total transaction of $214,708.30. Following the completion of the sale, the director directly owned 1,615 shares in the company, valued at approximately $261,701.06. This trade represents a 45.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 15,310 shares of company stock worth $2,533,585 over the last quarter. 0.34% of the stock is currently owned by insiders.

Key ServiceNow News

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

Institutional Investors Weigh In On ServiceNow

Hedge funds and other institutional investors have recently modified their holdings of the company. Quadcap Wealth Management LLC grew its stake in shares of ServiceNow by 772.4% during 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 holdings 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 during the last quarter. Eagle Wealth Advisors LLC purchased a new stake in ServiceNow during the 4th quarter worth about $538,000. Ashton Thomas Private Wealth LLC boosted its position in shares of ServiceNow by 709.4% during the 4th quarter. Ashton Thomas Private Wealth LLC now owns 9,535 shares of the information technology services provider’s stock worth $1,461,000 after acquiring an additional 8,357 shares in the last quarter. Finally, West Bancorporation Inc. boosted its position in shares of ServiceNow by 367.2% during the 4th 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 in the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

ServiceNow Trading Down 9.8%

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13. The firm has a market cap of $121.35 billion, a PE ratio of 70.06, a P/E/G ratio of 2.23 and a beta of 0.98. The business has a fifty day moving average price of $150.71 and a 200 day moving average price of $171.41.

ServiceNow (NYSE:NOW) last posted its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.03. The firm had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. ServiceNow had a return on equity of 19.47% and a net margin of 13.16%.The firm’s revenue was up 20.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.73 earnings per share. Analysts forecast that ServiceNow, Inc. will post 8.93 EPS for the current year.

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.