ServiceNow (NYSE:NOW) Stock Price Down 2% Following Analyst Downgrade

Shares of ServiceNow, Inc. (NYSE:NOW) traded down 2% during trading on Tuesday 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 $99.50 and last traded at $100.3560. 11,684,101 shares changed hands during trading, a decline of 37% from the average session volume of 18,500,639 shares. The stock had previously closed at $102.42.

Other equities analysts also recently issued research reports about the company. BMO Capital Markets lowered their price target on ServiceNow from $175.00 to $170.00 and set an “outperform” rating on the stock in a report on Thursday, January 29th. HSBC lowered their price target on ServiceNow from $266.40 to $226.00 and set a “buy” rating on the stock in a report on Friday, January 30th. UBS Group set a $115.00 price target on ServiceNow in a report on Thursday, January 29th. DA Davidson restated a “buy” rating and issued a $220.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Macquarie Infrastructure lowered their price objective on shares of ServiceNow from $172.00 to $140.00 and set a “neutral” rating on the stock in a research note on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $187.46.

Insider Buying and Selling

In related news, insider Paul Fipps sold 9,641 shares of the firm’s stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total value 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the transaction, the insider directly owned 26,314 shares of the company’s stock, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 16,237 shares of company stock valued at $1,697,162 over the last ninety days. 0.34% of the stock is owned by company insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Large enterprise partnership — DXC Technology announced a multiyear agreement to use the ServiceNow AI Platform to modernize core operations, a tangible enterprise-level win that supports future revenue and AI adoption. DXC Partners with ServiceNow
• Positive Sentiment: Partner ecosystem expansion — Naitiv launched as an AI-native consultancy built around ServiceNow, led by former ServiceNow executives; this deepens the partner network and targets industry-specific AI deployments (Property & Casualty insurance). Naitiv Launches
• Positive Sentiment: Institutional/investor buying signal — On CNBC’s Trade Tracker, portfolio manager Stephanie Link was reported buying more ServiceNow, which may provide short‑term buying support and signal conviction among some active managers. Stephanie Link Buys ServiceNow
• Neutral Sentiment: Value investors still holding — BNP notes value-oriented investors are maintaining positions in names including ServiceNow despite AI debate, indicating some long-term conviction but not immediate catalysts. Value Investors Holding
• Negative Sentiment: Analyst price-target cuts — Goldman Sachs trimmed its target from $216 to $188 (maintained Buy) and BTIG cut its target to $185 from $200; these headline changes increase downside risk and feed short-term selling pressure. Goldman Sachs Adjusts Price Target
• Negative Sentiment: Analyst caution on growth outlook — BTIG and other brokers cite scrutiny of FY26 revenue-growth guidance and Stifel has moved more cautious (while still Buy), highlighting investor concern about near‑term execution and growth deceleration. BTIG Price Target Cut
• Negative Sentiment: Governance headline — Reporting that the CEO’s compensation rose significantly in 2025 can be a near-term reputational drag for investors focused on cost discipline and stewardship. CEO Compensation Increase

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in shares of ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the period. State Street Corp lifted its holdings in shares of ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after acquiring an additional 25,517,218 shares during the period. Geode Capital Management LLC lifted its holdings in shares of ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the period. Finally, Morgan Stanley lifted its holdings in shares of ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after acquiring an additional 17,514,679 shares during the period. 87.18% of the stock is owned by institutional investors.

ServiceNow Stock Performance

The company has a market capitalization of $104.97 billion, a P/E ratio of 60.17, a PEG ratio of 1.71 and a beta of 1.01. The stock has a fifty day simple moving average of $109.13 and a 200-day simple moving average of $145.54. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW) last issued 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. The company had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business’s revenue was up 20.7% on a year-over-year basis. During the same period last year, the business earned $0.73 earnings per share. Equities analysts forecast 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.