ServiceNow (NYSE:NOW) Stock Price Expected to Rise, Citigroup Analyst Says

ServiceNow (NYSE:NOW) had its price objective increased by equities research analysts at Citigroup from $235.00 to $237.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the information technology services provider’s stock. Citigroup’s target price points to a potential upside of 103.04% from the company’s previous close.

A number of other equities research analysts have also recently commented on the company. BNP Paribas Exane decreased their price objective on ServiceNow from $186.00 to $120.00 and set a “neutral” rating for the company in a research note on Thursday, January 22nd. DZ Bank upgraded ServiceNow to a “strong-buy” rating in a report on Thursday, December 18th. Needham & Company LLC restated a “buy” rating and set a $155.00 target price on shares of ServiceNow in a research report on Thursday. Robert W. Baird set a $175.00 price target on ServiceNow in a research note on Thursday. Finally, Morgan Stanley set a $263.00 price objective on shares of ServiceNow and gave the stock an “overweight” rating in a research note on Thursday, October 30th. 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. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $194.47.

ServiceNow Trading Down 0.0%

NOW opened at $116.73 on Friday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.06. The company has a market cap of $121.21 billion, a price-to-earnings ratio of 69.98, a price-to-earnings-growth ratio of 2.01 and a beta of 0.98. The firm has a 50 day simple moving average of $149.79 and a 200 day simple moving average of $170.74. ServiceNow has a fifty-two week low of $113.13 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The firm had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.53 billion. During the same period last year, the firm earned $0.73 earnings per share. The business’s revenue for the quarter was up 20.7% on a year-over-year basis. On average, sell-side analysts anticipate that ServiceNow will post 8.93 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director owned 47,930 shares of the company’s stock, valued at $7,745,488. This represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the firm’s stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total transaction of $431,735.76. Following the sale, the insider owned 15,000 shares in the company, valued at approximately $2,481,240. The trade was a 14.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Richardson Financial Services Inc. lifted its stake in ServiceNow by 50.0% in the second quarter. Richardson Financial Services Inc. now owns 33 shares of the information technology services provider’s stock valued at $33,000 after acquiring an additional 11 shares during the last quarter. Brady Martz Wealth Solutions LLC raised its holdings in shares of ServiceNow by 1.3% in the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock valued at $775,000 after purchasing an additional 11 shares during the period. Magnus Financial Group LLC raised its holdings in shares of ServiceNow by 1.9% in the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock valued at $542,000 after purchasing an additional 11 shares during the period. Avidian Wealth Enterprises LLC lifted its stake in ServiceNow by 2.5% in the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock valued at $417,000 after purchasing an additional 11 shares during the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors grew its holdings in ServiceNow by 2.1% during the second quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 575 shares of the information technology services provider’s stock worth $591,000 after purchasing an additional 12 shares during the period. 87.18% of the stock is owned by institutional investors and hedge funds.

ServiceNow News Summary

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.