Erste Group Bank Reduces Earnings Estimates for ServiceNow

ServiceNow, Inc. (NYSE:NOW) – Equities researchers at Erste Group Bank dropped their FY2027 EPS estimates for ServiceNow in a note issued to investors on Wednesday, February 18th. Erste Group Bank analyst S. Lingnau now expects that the information technology services provider will post earnings of $3.20 per share for the year, down from their prior forecast of $3.21. The consensus estimate for ServiceNow’s current full-year earnings is $8.93 per share.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. The company 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 business’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.73 earnings per share.

Several other brokerages also recently weighed in on NOW. BNP Paribas Exane decreased their target price on ServiceNow from $186.00 to $120.00 and set a “neutral” rating for the company in a research report on Thursday, January 22nd. Deutsche Bank Aktiengesellschaft set a $180.00 price target on ServiceNow in a research report on Thursday, January 29th. Sanford C. Bernstein restated an “outperform” rating on shares of ServiceNow in a report on Thursday, January 29th. BTIG Research reiterated a “buy” rating and set a $200.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Citigroup upped their target price on shares of ServiceNow from $235.00 to $237.00 and gave the company a “buy” rating in a research note on Friday, January 30th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $192.06.

ServiceNow Stock Down 2.9%

Shares of ServiceNow stock opened at $104.22 on Monday. The company has a fifty day moving average price of $131.62 and a 200 day moving average price of $161.65. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. ServiceNow has a twelve month low of $98.00 and a twelve month high of $211.48. The stock has a market cap of $109.02 billion, a price-to-earnings ratio of 62.48, a price-to-earnings-growth ratio of 1.76 and a beta of 0.98.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently modified their holdings of NOW. Kilter Group LLC acquired a new stake in ServiceNow in the 2nd quarter valued at approximately $25,000. IAG Wealth Partners LLC grew its stake in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares in the last quarter. Noble Wealth Management PBC increased its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 128 shares during the period. Millstone Evans Group LLC raised its stake in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares in the last quarter. Finally, CBIZ Investment Advisory Services LLC raised its stake in shares of ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 135 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

Insider Activity

In other ServiceNow news, insider Paul Fipps sold 9,641 shares of the firm’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares of the company’s stock, valued at $1,245,419.01. This trade represents a 45.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares in the company, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 19,526 shares of company stock worth $2,467,814 over the last ninety days. Insiders own 0.34% of the company’s stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: CEO Bill McDermott bought roughly $3 million of NOW shares on the open market — a high‑visibility insider purchase that signals management confidence and likely helped limit the sell‑off. ServiceNow (NOW) CEO McDermott Bought $3 Million Worth Company Shares
• Positive Sentiment: BNP Paribas analysis flags valuation upside in select SaaS names (including ServiceNow) when adjusting for stock‑based compensation — a positive analyst/data point for medium‑term buyers. BNP Paribas analyzes SaaS valuations … sees upside in ServiceNow
• Positive Sentiment: ServiceNow management (President & COO Amit Zavery) reiterated that AI adoption is driving enterprise demand for the Now Platform — supportive messaging for revenue/booking momentum expectations. ServiceNow Sees AI Adoption Driving Enterprise Growth
• Neutral Sentiment: Tequity Advisors named a ServiceNow leader/M&A advisor — a sector hire that is unlikely to move the stock materially but indicates continued deal‑market interest. Tequity Advisors Welcomes Thomas Moewe as ServiceNow Leader, M&A Advisor
• Negative Sentiment: Director/insider Paul Fipps sold 9,641 shares (~$1.02M) on Feb. 18 — insider selling can be viewed negatively by traders even when not uncommon for tax/liquidity reasons. Paul Fipps Sells 9,641 Shares of ServiceNow Stock
• Negative Sentiment: Options flow shows a large, unusual buyer interest in puts (over 100k contracts recently) — elevated put volume signals hedging or directional bearish bets that can pressure near‑term sentiment.
• Negative Sentiment: Broader “SaaSpocalypse” / software‑stock rotation persists — high‑profile managers exiting software and media coverage of the sector slump are keeping downward pressure on NOW despite company‑specific positives. Why one of tech’s top fund managers just abandoned software stocks

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.