ServiceNow (NYSE:NOW) Trading Down 3.1% Following Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s share price fell 3.1% during trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $216.00 to $188.00. The Goldman Sachs Group currently has a buy rating on the stock. ServiceNow traded as low as $96.96 and last traded at $97.4080. 19,594,547 shares were traded during mid-day trading, an increase of 6% from the average session volume of 18,520,998 shares. The stock had previously closed at $100.55.

A number of other equities analysts have also commented on the company. DA Davidson reaffirmed a “buy” rating and issued a $220.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. BMO Capital Markets cut their price objective on ServiceNow from $175.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Deutsche Bank Aktiengesellschaft set a $180.00 price objective on ServiceNow in a research note on Thursday, January 29th. HSBC cut their price objective on ServiceNow from $266.40 to $226.00 and set a “buy” rating on the stock in a research note on Friday, January 30th. Finally, Jefferies Financial Group cut their price objective on ServiceNow from $230.00 to $175.00 and set a “buy” rating on the stock in a research note on Friday, January 23rd. Three analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $187.46.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the transaction, the director directly owned 46,430 shares of the company’s stock, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 9,641 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the sale, the insider owned 11,757 shares of the company’s stock, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 16,237 shares of company stock valued at $1,697,162. 0.34% of the stock is currently owned by company insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Goldman Sachs keeps a buy rating on NOW, which provides institutional support for the shares despite recent volatility. Goldman Sachs Sticks to Its Buy Rating for ServiceNow
• Positive Sentiment: Industry checks suggest the Microsoft/Salesforce/ServiceNow sell‑off is overdone as CIOs move AI from experimentation to deployment — a near‑term narrative that supports upside if execution follows. Microsoft, Salesforce, ServiceNow Sell-Off Is Overdone: Dan Ives
• Positive Sentiment: New commercial momentum and partnerships (DXC multi‑year AI engagement; launch of Naitiv, an AI‑native ServiceNow consultancy) highlight enterprise demand and ecosystem expansion that could lift adoption and revenue over time. DXC Partners with ServiceNow on a New Wave of AI-first Enterprise Transformation Naitiv Launches as the First AI-Native ServiceNow Consultancy
• Positive Sentiment: Notable investors (e.g., Stephanie Link) adding to ServiceNow signals conviction from some active managers amid the pullback. Trade Tracker: Stephanie Link buys Marvell, more ServiceNow and sells Chevron
• Neutral Sentiment: Coverage pieces note software stocks are broadly discounted and compare NOW to peers like Snowflake — framing the pullback as both risk and potential buying opportunity depending on investor horizon. Should Investors Buy ServiceNow Stock Instead of Snowflake Stock?
• Neutral Sentiment: Analysts at Erste Group made a very small FY2027 EPS tweak — a modest data point rather than a major catalyst for direction near term.
• Negative Sentiment: BTIG cut its price target to $185 (from $200), signaling increased scrutiny of FY26 revenue growth; price‑target cuts reduce near‑term upside expectations. ServiceNow Price Target Cut to $185 by BTIG
• Negative Sentiment: Goldman also trimmed its price target (reported coverage), and the stock recently hit a 52‑week low — concrete indicators that analyst sentiment and market positioning have turned cautious. Servicenow stock hits 52-week low at 97.96 USD Goldman Sachs adjusts price target on ServiceNow to 188
• Negative Sentiment: Real‑time market coverage notes the share price dipped in the latest session amid the sector rout, reinforcing momentum‑driven selling pressure. ServiceNow (NOW) Stock Dips While Market Gains: Key Facts

Institutional Investors Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently modified their holdings of NOW. IAG Wealth Partners LLC increased its holdings in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after acquiring 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 acquiring an additional 128 shares in the last quarter. Millstone Evans Group LLC increased its holdings 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 acquiring an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its holdings 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 acquiring an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC bought a new stake in shares of ServiceNow during the fourth quarter valued at approximately $25,000. Institutional investors own 87.18% of the company’s stock.

ServiceNow Stock Performance

The stock has a market cap of $101.89 billion, a P/E ratio of 58.40, a P/E/G ratio of 1.71 and a beta of 1.01. The company has a fifty day moving average price of $108.49 and a 200 day moving average price of $145.21. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results 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. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter in the prior year, the company posted $0.73 earnings per share. ServiceNow’s revenue was up 20.7% compared to the same quarter last year. On average, equities analysts expect 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.