ServiceNow (NYSE:NOW) Shares Down 1.4% After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) shares were down 1.4% during mid-day trading on Tuesday after BMO Capital Markets lowered their price target on the stock from $170.00 to $120.00. BMO Capital Markets currently has an outperform rating on the stock. ServiceNow traded as low as $87.12 and last traded at $87.81. Approximately 23,377,652 shares changed hands during trading, an increase of 19% from the average daily volume of 19,693,533 shares. The stock had previously closed at $89.06.

NOW has been the topic of several other research reports. TD Cowen lowered their price target on shares of ServiceNow from $200.00 to $185.00 and set a “buy” rating on the stock in a research report on Thursday, January 29th. Argus raised shares of ServiceNow to a “strong-buy” rating in a research report on Wednesday, February 4th. Stifel Nicolaus lowered their price target on shares of ServiceNow from $180.00 to $135.00 and set a “buy” rating on the stock in a research report on Thursday, April 2nd. Truist Financial set a $175.00 price target on shares of ServiceNow in a research report on Thursday, February 5th. Finally, KeyCorp lowered their price target on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, ServiceNow has an average rating of “Moderate Buy” and a consensus target price of $183.93.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, 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 value of $147,994.00. Following the transaction, the insider owned 26,314 shares of the company’s stock, valued at $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Paul Fipps sold 9,641 shares of the company’s stock in a transaction dated 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 in the company, valued at $1,245,419.01. The trade was a 45.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 16,237 shares of company stock valued at $1,697,162 over the last 90 days. 0.34% of the stock is owned by insiders.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Qlik partnership to surface governed enterprise data and analytics inside ServiceNow workflows — strengthens NOW’s play to be an “enterprise AI nerve center,” which supports long-term revenue and platform stickiness. Read More.
• Positive Sentiment: TrustCloud integration brings AI-driven cyber risk automation into the ServiceNow platform — incremental security use-cases and GTM motions can expand platform adoption. Read More.
• Positive Sentiment: Cadena named #1 ServiceNow SAM partner for 2026 and recognized for AI-augmented delivery — partner momentum helps execution of large enterprise deployments. Read More.
• Positive Sentiment: Mizuho lists ServiceNow among its top software picks ahead of earnings — an institutional vote of confidence that can support demand if macro/earnings tone improves. Read More.
• Neutral Sentiment: SaaS-wide dip-buying and macro headlines are driving rotation across cloud/software names — some intraday moves in peers (Cloudflare, Pegasystems, Shopify, etc.) create noisy comparables for NOW. Read More.
• Neutral Sentiment: Broader AI/compute frenzy headlines (CoreWeave, Data Center plays) are reshaping sector flows; ServiceNow benefits indirectly from enterprise AI thematic interest but isn’t a pure-play compute/value chain name. Read More.
• Negative Sentiment: BMO cut its price target from $170 to $120 (still “outperform”) — the target reset narrows upside and likely pressured near-term sentiment. Read More.
• Negative Sentiment: RBC also lowered its target to $121 while keeping an outperform — another analyst target reduction adding to sell-side caution. Read More.
• Negative Sentiment: UBS cut NOW to Neutral — an explicit downgrade from a major bank weighs on discretionary institutional demand. Read More.
• Negative Sentiment: Recent bearish commentary pieces highlight valuation concerns and argue the correction could continue — contributes to selling pressure despite growth/AI narratives. Read More.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Cohen Klingenstein LLC increased its stake in shares of ServiceNow by 400.0% during the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock worth $1,532,000 after buying an additional 8,000 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of ServiceNow by 385.9% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider’s stock worth $398,202,000 after buying an additional 2,064,440 shares during the period. Focus Financial Network Inc. increased its stake in shares of ServiceNow by 286.1% during the fourth quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider’s stock worth $8,219,000 after buying an additional 39,756 shares during the period. Telos Capital Management Inc. increased its stake in shares of ServiceNow by 706.0% during the fourth quarter. Telos Capital Management Inc. now owns 50,940 shares of the information technology services provider’s stock worth $7,803,000 after buying an additional 44,620 shares during the period. Finally, Natural Investments LLC increased its stake in shares of ServiceNow by 332.0% during the fourth quarter. Natural Investments LLC now owns 16,453 shares of the information technology services provider’s stock worth $2,520,000 after buying an additional 12,644 shares during the period. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Price Performance

The stock’s 50 day moving average is $106.27 and its two-hundred day moving average is $142.12. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. The stock has a market capitalization of $90.99 billion, a PE ratio of 52.64, a price-to-earnings-growth ratio of 1.49 and a beta of 1.01.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, topping 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 analyst estimates of $3.53 billion. During the same period in the prior year, the firm earned $0.73 earnings per share. The business’s quarterly revenue was up 20.7% compared to the same quarter last year. As a group, sell-side analysts forecast that ServiceNow, Inc. will post 8.93 earnings per share 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.