DA Davidson Reiterates Buy Rating for ServiceNow (NYSE:NOW)

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reaffirmed by investment analysts at DA Davidson in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. They presently have a $220.00 price objective on the information technology services provider’s stock. DA Davidson’s target price would suggest a potential upside of 88.47% from the stock’s previous close.

NOW has been the topic of a number of other research reports. Barclays boosted their target price on shares of ServiceNow from $242.00 to $245.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. Royal Bank Of Canada decreased their price objective on ServiceNow from $195.00 to $185.00 and set an “outperform” rating on the stock in a research note on Thursday. Arete Research set a $200.00 target price on ServiceNow in a research note on Tuesday, January 6th. Evercore ISI reaffirmed an “outperform” rating and set a $175.00 target price (down previously from $225.00) on shares of ServiceNow in a report on Thursday. Finally, UBS Group set a $115.00 price target on shares of ServiceNow in a report on Thursday. Two research 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 assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $194.84.

ServiceNow Trading Down 0.0%

Shares of NOW opened at $116.73 on Thursday. ServiceNow has a fifty-two week low of $113.13 and a fifty-two week high of $211.48. The business has a 50-day moving average of $149.79 and a 200 day moving average of $170.88. The firm has a market cap of $121.21 billion, a P/E ratio of 69.98, a price-to-earnings-growth ratio of 2.01 and a beta of 0.98. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.06 and a current ratio of 1.00.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. The firm had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company’s quarterly revenue was up 20.7% on a year-over-year basis. During the same quarter last year, the business earned $0.73 earnings per share. As a group, research analysts forecast that ServiceNow will post 8.93 EPS for the current year.

Insider Activity

In other news, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total value of $431,735.76. Following the completion of the sale, the insider directly owned 15,000 shares in the company, valued at approximately $2,481,240. The trade was a 14.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 1,525 shares of the stock in a transaction 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 transaction, the insider directly owned 2,705 shares in the company, valued at approximately $442,294.55. This represents a 36.05% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 15,310 shares of company stock valued at $2,533,585. Insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several institutional investors and hedge funds have recently bought and sold shares of NOW. Klingman & Associates LLC grew its stake in shares of ServiceNow by 22.2% in the second quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock worth $548,000 after purchasing an additional 97 shares during the last quarter. Ethic Inc. grew its position in shares of ServiceNow by 1.6% in the 2nd quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock worth $26,067,000 after buying an additional 397 shares during the last quarter. Howard Capital Management Inc. grew its position in shares of ServiceNow by 32.0% in the 2nd quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock worth $1,506,000 after buying an additional 355 shares during the last quarter. ASR Vermogensbeheer N.V. increased its stake in shares of ServiceNow by 128.8% during the second quarter. ASR Vermogensbeheer N.V. now owns 55,394 shares of the information technology services provider’s stock valued at $56,944,000 after buying an additional 31,181 shares during the period. Finally, DekaBank Deutsche Girozentrale raised its holdings in shares of ServiceNow by 1.6% during the second quarter. DekaBank Deutsche Girozentrale now owns 416,444 shares of the information technology services provider’s stock valued at $428,783,000 after acquiring an additional 6,431 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat expectations — EPS and revenue topped street estimates and subscription revenue grew >20%, showing continued demand and AI adoption. Earnings Beat
• Positive Sentiment: Board authorized a $5B buyback (including $2B accelerated), which is supportive for EPS and signals management confidence. Buyback
• Positive Sentiment: Strong AI product traction and partnerships (Anthropic, OpenAI integrations) underpin longer-term growth potential and enterprise adoption. AI Partnerships
• Neutral Sentiment: Analyst reactions are mixed: several firms (DA Davidson, Cantor, BTIG, Needham) reiterated/maintained buy or overweight ratings and raised/kept targets, while others cut targets or downgraded — leaving a wide range of price targets and sentiment dispersion. Analyst Notes
• Neutral Sentiment: Unusually large options volume was reported, indicating speculative/moderately aggressive trading that can amplify intraday moves (uncertain directional implication). Options Activity
• Negative Sentiment: Guidance signaled a slowdown: management forecast subscription growth for FY26 that implies deceleration from 2025 levels — investors viewed this as a notable deceleration risk. Guidance/Slowdown
• Negative Sentiment: Broader sector and AI disruption fears triggered a sell-off in software names; commentary highlighted multiple compression and concerns competition from new AI entrants could hurt growth/valuation. Sector/AI Fears
• Negative Sentiment: Some firms cut price targets sharply (KeyCorp to $115, Macquarie to $140), reflecting concern over valuation and near‑term execution — that contributed to downward pressure. Price 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.