HSBC Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

ServiceNow (NYSE:NOW) had its target price decreased by equities researchers at HSBC from $266.40 to $226.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The brokerage currently has a “buy” rating on the information technology services provider’s stock. HSBC’s price target would suggest a potential upside of 93.61% from the company’s current price.

Other equities research analysts have also issued research reports about the stock. Stifel Nicolaus set a $180.00 target price on shares of ServiceNow and gave the company a “buy” rating in a research note on Thursday. Oppenheimer reissued an “outperform” rating and set a $175.00 price objective (down previously from $200.00) on shares of ServiceNow in a research report on Wednesday, January 21st. Wells Fargo & Company set a $225.00 target price on ServiceNow and gave the company an “overweight” rating in a research note on Thursday, January 8th. KeyCorp cut their price target on ServiceNow from $155.00 to $115.00 and set an “underweight” rating for the company in a research note on Thursday. Finally, Deutsche Bank Aktiengesellschaft set a $180.00 price target on ServiceNow in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, ServiceNow presently has an average rating of “Moderate Buy” and a consensus target price of $194.47.

ServiceNow Trading Down 0.0%

Shares of NYSE NOW opened at $116.73 on Friday. The company has a current ratio of 1.00, a quick ratio of 1.06 and a debt-to-equity ratio of 0.12. ServiceNow has a one year low of $113.13 and a one year high of $211.48. The business has a 50-day moving average price of $149.79 and a two-hundred day moving average price of $170.74. The firm has a market capitalization of $121.21 billion, a PE ratio of 69.98, a PEG ratio of 2.01 and a beta of 0.98.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. The business 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 firm’s revenue was up 20.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.73 earnings per share. As a group, analysts predict that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In related news, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the firm’s stock in a transaction 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 transaction, the insider directly owned 15,000 shares in the company, valued at approximately $2,481,240. This trade represents a 14.82% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction on Friday, November 14th. The stock was sold at an average price of $168.50, for a total transaction of $235,894.40. Following the completion of the transaction, the insider owned 25,270 shares in the company, valued at $4,257,893.92. This trade represents a 5.25% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors have recently made changes to their positions in NOW. Brighton Jones LLC lifted its holdings in shares of ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after acquiring an additional 34 shares during the last quarter. Hilltop National Bank bought a new position in ServiceNow during the second quarter worth $626,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its stake in ServiceNow by 22.1% during the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,512 shares of the information technology services provider’s stock valued at $2,583,000 after purchasing an additional 455 shares during the last quarter. Finally, Ameritas Advisory Services LLC acquired a new position in ServiceNow during the 2nd quarter valued at $214,000. 87.18% of the stock is currently owned by institutional investors.

Key Stories Impacting ServiceNow

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

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.