ServiceNow (NYSE:NOW) Shares Down 7.6% Following Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s share price fell 7.6% during trading on Friday after UBS Group downgraded the stock from a buy rating to a neutral rating. UBS Group now has a $100.00 price target on the stock, down from their previous price target of $170.00. ServiceNow traded as low as $81.24 and last traded at $83.0010. 58,438,148 shares traded hands during trading, an increase of 200% from the average session volume of 19,459,131 shares. The stock had previously closed at $89.81.

A number of other equities research analysts also recently weighed in on NOW. BTIG Research reduced their target price on ServiceNow from $200.00 to $185.00 and set a “buy” rating on the stock in a report on Tuesday. Needham & Company LLC reaffirmed a “buy” rating and issued a $155.00 target price on shares of ServiceNow in a report on Thursday, February 5th. TD Cowen reduced their target price on ServiceNow from $200.00 to $185.00 and set a “buy” rating on the stock in a report on Thursday, January 29th. Capital One Financial reduced their target price on ServiceNow from $188.00 to $161.00 and set an “overweight” rating on the stock in a report on Friday, January 16th. Finally, Guggenheim raised ServiceNow from a “sell” rating to a “neutral” rating in a report on Tuesday, December 16th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $187.06.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 3,696 shares of the firm’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total transaction of $376,141.92. Following the sale, the insider owned 8,061 shares of the company’s stock, valued at $820,367.97. This trade represents a 31.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider directly owned 26,314 shares in the company, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 16,237 shares of company stock valued at $1,697,162 in the last 90 days. 0.34% of the stock is owned by corporate insiders.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow rolled out an AI-native platform across its product portfolio and unveiled features like Context Engine and Build Agent skills — a strategic move to embed agentic AI and defend its workflow/control-plane positioning. ServiceNow Puts AI At The Center With DXC Agentic Partnership
• Positive Sentiment: ServiceNow deepened enterprise references via a partnership with DXC to deploy agentic AI at scale — this helps show early customer traction for the new AI-native stack. ServiceNow Puts AI At The Center With DXC Agentic Partnership
• Neutral Sentiment: Some analysts and outlets still view NOW as a long-term AI/automation play or a buy-the-dip candidate; Stifel and other commentators highlight backlog rebuilding and double-digit revenue growth as supportive fundamentals. Stifel Bullish on ServiceNow
• Negative Sentiment: UBS downgraded NOW to Neutral and cut its price target sharply (from $170 to $100), citing emerging budget pressures in non‑AI software spending and rising use of lighter workflow tools — the note is the main near-term sell catalyst. ServiceNow faces more cautious outlook as UBS cites AI-driven budget pressures
• Negative Sentiment: Broader software-sector panic after new agentic AI model releases (Anthropic/OpenAI) triggered heavy selling across SaaS names, and ServiceNow has been singled out as vulnerable to disruption — amplifying the selloff. Worries Over AI Competition Pummel Software Stocks
• Negative Sentiment: Multiple analyst downgrades and target cuts (UBS, Erste, BTIG and others) plus high-volume selling have pushed NOW to 52-week lows and steep YTD losses, creating technical downside pressure even as some investors call the shares oversold. ServiceNow Stock Craters 19%

Institutional Investors Weigh In On ServiceNow

Several hedge funds have recently modified their holdings of the company. J. Derek Lewis & Associates Inc. acquired a new stake in shares of ServiceNow during the 4th quarter valued at $238,000. Stance Capital LLC lifted its holdings in ServiceNow by 456.7% during the 4th quarter. Stance Capital LLC now owns 8,050 shares of the information technology services provider’s stock worth $1,233,000 after buying an additional 6,604 shares during the period. Rockefeller Capital Management L.P. lifted its holdings in ServiceNow by 649.2% during the 4th quarter. Rockefeller Capital Management L.P. now owns 515,470 shares of the information technology services provider’s stock worth $78,965,000 after buying an additional 446,667 shares during the period. Bank of New Hampshire lifted its holdings in ServiceNow by 401.9% during the 4th quarter. Bank of New Hampshire now owns 9,275 shares of the information technology services provider’s stock worth $1,421,000 after buying an additional 7,427 shares during the period. Finally, Fund Advisors of America Inc FL acquired a new position in ServiceNow during the 4th quarter worth about $507,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Price Performance

The stock has a market capitalization of $86.00 billion, a price-to-earnings ratio of 49.76, a P/E/G ratio of 1.51 and a beta of 1.01. The company has a fifty day simple moving average of $107.27 and a 200 day simple moving average of $144.08. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.89 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.73 EPS. Equities research analysts forecast that ServiceNow, Inc. will post 8.93 EPS for the current fiscal 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.