Erste Group Bank Lowers Earnings Estimates for ServiceNow

ServiceNow, Inc. (NYSE:NOW) – Equities researchers at Erste Group Bank lowered their FY2027 EPS estimates for ServiceNow in a report issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now forecasts that the information technology services provider will earn $3.19 per share for the year, down from their prior estimate of $3.20. The consensus estimate for ServiceNow’s current full-year earnings is $8.93 per share.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating 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 company had revenue of $3.57 billion during 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% on a year-over-year basis.

A number of other analysts have also commented on the stock. Wells Fargo & Company reduced their price objective on shares of ServiceNow from $225.00 to $185.00 and set an “overweight” rating for the company in a research note on Tuesday, March 31st. TD Cowen reduced their price objective on shares of ServiceNow from $200.00 to $185.00 and set a “buy” rating for the company in a research note on Thursday, January 29th. Benchmark started coverage on shares of ServiceNow in a research note on Wednesday, April 1st. They set a “buy” rating and a $125.00 price objective for the company. Jefferies Financial Group reduced their price objective on shares of ServiceNow from $230.00 to $175.00 and set a “buy” rating for the company in a research note on Friday, January 23rd. Finally, UBS Group set a $115.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus target price of $187.46.

ServiceNow Price Performance

NOW stock opened at $97.41 on Wednesday. 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 one year low of $96.96 and a one year high of $211.48. The firm has a market capitalization of $101.89 billion, a PE ratio of 58.40, a P/E/G ratio of 1.71 and a beta of 1.01. The firm has a 50-day moving average of $108.49 and a two-hundred day moving average of $145.21.

Institutional Trading of ServiceNow

A number of hedge funds have recently made changes to their positions in NOW. Brighton Jones LLC lifted its position in shares of ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after purchasing an additional 30 shares in the last quarter. Sivia Capital Partners LLC increased its holdings in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after buying an additional 34 shares during the last quarter. United Bank increased its holdings in ServiceNow by 15.5% in the second quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after buying an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. increased its holdings in ServiceNow by 2.2% in the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after buying an additional 42 shares during the last quarter. Finally, Gamco Investors INC. ET AL increased its holdings in ServiceNow by 0.4% in the second quarter. Gamco Investors INC. ET AL now owns 4,787 shares of the information technology services provider’s stock worth $4,921,000 after buying an additional 21 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares of the company’s stock, valued at $4,697,323.10. This represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider directly owned 26,314 shares of the company’s stock, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 16,237 shares of company stock valued at $1,697,162 over the last three months. 0.34% of the stock is owned by corporate 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

About ServiceNow

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.