ServiceNow (NYSE:NOW) Raised to Strong-Buy at Argus

ServiceNow (NYSE:NOW) was upgraded by research analysts at Argus to a “strong-buy” rating in a report released on Wednesday,Zacks.com reports.

Several other research analysts have also issued reports on NOW. Sanford C. Bernstein restated an “outperform” rating on shares of ServiceNow in a research report on Thursday, January 29th. Needham & Company LLC reissued a “buy” rating and set a $155.00 price objective on shares of ServiceNow in a research note on Thursday. TD Cowen decreased 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 for the company in a report on Friday, January 16th. Finally, Deutsche Bank Aktiengesellschaft set a $180.00 price target on ServiceNow in a research note on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, ServiceNow has a consensus rating of “Moderate Buy” and an average target price of $193.01.

ServiceNow Price Performance

NYSE:NOW opened at $102.88 on Wednesday. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The business’s 50-day moving average price is $145.63 and its 200 day moving average price is $168.60. ServiceNow has a 52-week low of $101.72 and a 52-week high of $211.48. The firm has a market cap of $107.61 billion, a P/E ratio of 61.68, a PEG ratio of 1.88 and a beta of 0.97.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share 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 the consensus estimate of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. ServiceNow’s revenue was up 20.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.73 EPS. As a group, sell-side analysts predict that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Jacqueline P. Canney sold 470 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total transaction of $77,745.52. Following the completion of the sale, the insider directly owned 15,135 shares in the company, valued at approximately $2,503,571.16. This trade represents a 3.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Gina Mastantuono sold 2,075 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $170.00, for a total transaction of $352,750.00. Following the completion of the transaction, the chief financial officer owned 61,140 shares in the company, valued at approximately $10,393,800. This represents a 3.28% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 15,310 shares of company stock worth $2,533,585. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC increased its position in ServiceNow by 1.1% in the 4th 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 during the last quarter. Sivia Capital Partners LLC grew its stake in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after buying an additional 34 shares in the last quarter. Cornerstone Advisory LLC raised its position in ServiceNow by 13.8% during the second quarter. Cornerstone Advisory LLC now owns 264 shares of the information technology services provider’s stock valued at $271,000 after acquiring an additional 32 shares in the last quarter. Tectonic Advisors LLC raised its position in ServiceNow by 36.0% during the second quarter. Tectonic Advisors LLC now owns 835 shares of the information technology services provider’s stock valued at $858,000 after acquiring an additional 221 shares in the last quarter. Finally, Leo Wealth LLC acquired a new stake in ServiceNow in the second quarter valued at approximately $268,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Needham reaffirmed a Buy on NOW and set a $155 price target, citing strong adoption of Now Assist and AI-driven growth — an upgrade-style catalyst that supports upside potential if execution continues to track. ServiceNow: Strong Now Assist Adoption and AI-Driven Growth Create Attractive Buy Entry Point
• Positive Sentiment: Partnership with Anthropic deepens ServiceNow’s AI platform strategy, strengthening product differentiation and enterprise AI roadmap — a medium-term positive for revenue/retention. ServiceNow Deepens AI Platform Strategy With Anthropic Partnership
• Positive Sentiment: Bernstein flagged NOW as a discounted large-cap growth name, suggesting valuation support for long-term investors if near-term volatility stabilizes. Why Bernstein Calls ServiceNow (NOW) a Discount Large-Cap Growth Stock
• Neutral Sentiment: BTIG and others debate whether recent weakness is a buying opportunity or sign of structural risk; views point to a polarized market — this fuels volatility but not a clear directional verdict. Software ‘SaaSpocalypse:’ BTIG Sees Salesforce, ServiceNow Rebound, But Jim Cramer Warns Of Permanent AI Obsolescence
• Neutral Sentiment: Zacks notes NOW is a trending stock — increased attention can amplify moves in either direction depending on next catalysts (earnings, product announcements, sector flow). ServiceNow, Inc. (NOW) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: MarketBeat/Fool coverage highlights that NOW plunged amid a sectorwide rout — broad software selling and momentum chasing are the immediate drivers of the stock’s decline. Why ServiceNow Tumbled by Almost 8% on Thursday
• Negative Sentiment: The broader “SaaSpocalypse” narrative and articles highlighting tech stocks being cut in half are pressuring investor sentiment toward SaaS names like NOW. The SaaSpocalypse Has Cut These Stocks In Half
• Negative Sentiment: Security research flagged exploitable AI agents tied to Microsoft and ServiceNow, raising short-term operational and reputational risk that could amplify downside until clarified. Microsoft and ServiceNow’s exploitable agents reveal a growing – and preventable – AI security crisis
• Negative Sentiment: High-profile criticism (Jim Cramer pieces) and headlines about AI fears hammering software stocks are feeding momentum selling in NOW despite company-level positives. Jim Cramer on ServiceNow: “This Stock Has Become a Nightmare”

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.