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

Shares of ServiceNow, Inc. (NYSE:NOW) fell 2% during mid-day 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 mid-day 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 research analysts have also issued research reports about the company. Weiss Ratings restated a “hold (c)” rating on shares of ServiceNow in a research note on Thursday, January 22nd. Robert W. Baird set a $175.00 price objective on ServiceNow in a research note on Thursday, January 29th. Truist Financial set a $175.00 price objective on ServiceNow in a research note on Thursday, February 5th. Macquarie Infrastructure lowered their price objective on ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Finally, Wells Fargo & Company lowered their price objective on ServiceNow from $225.00 to $185.00 and set an “overweight” rating for the company in a research note on Tuesday, March 31st. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of “Moderate Buy” and an average price target of $187.46.

Insider Transactions at ServiceNow

In other news, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction that occurred 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 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the transaction, the director owned 46,430 shares of the company’s stock, valued at approximately $4,697,323.10. The trade was a 3.13% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is currently owned by corporate insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Portfolio manager Stephanie Link increased her ServiceNow stake, a vote of confidence from an active value investor that can support demand for shares. Trade Tracker: Stephanie Link buys Marvell, more ServiceNow and sells Chevron
• Positive Sentiment: DXC Technology signed a multi‑year agreement to use the ServiceNow AI platform to modernize enterprise operations — a large‑scale partnership that supports future revenue and AI monetization. DXC Partners With ServiceNow on a New Wave of AI-first Enterprise Transformation
• Positive Sentiment: Former ServiceNow leaders launched Naitiv, an AI‑native ServiceNow consultancy targeting enterprise AI transformations (notable for channel expansion and potential to accelerate ServiceNow implementations). ServiceNow Partner Community Expands With Formation Of Naitiv
• Neutral Sentiment: Analysis pieces argue ServiceNow may now look undervalued after the selloff and that value investors remain holders despite AI concerns — these narratives can attract bargain hunters but are speculative until results/revisions. Assessing Whether ServiceNow (NOW) Still Looks Undervalued After Recent Weak Share Price Performance
• Neutral Sentiment: Be aware of ticker confusion: NowVertical (TSXV: NOW) press releases referencing contract expansions are for a different company and can create noise in searches. NowVertical Expands Strategic Engagement
• Negative Sentiment: BTIG trimmed its price target to $185 (from $200) while keeping a Buy — a sign analysts are lowering near‑term expectations and that upside is being re‑priced. ServiceNow Price Target Cut to $185 by BTIG
• Negative Sentiment: Goldman Sachs lowered its price target to $188 (from $216) but maintained a Buy — another notable downgrade in upside that likely pressured the stock. Goldman Sachs Adjusts Price Target on ServiceNow
• Negative Sentiment: Stifel has grown more cautious on ServiceNow (while keeping a Buy), reflecting concern about growth trajectory and investor sentiment after a sharp YTD drop — that caution contributes to selling pressure. Why Stifel Turned More Cautious on ServiceNow
• Negative Sentiment: Corporate governance/optics risk: coverage notes the CEO’s compensation rose ~40% in 2025, which can draw negative investor attention amid weak share performance. ServiceNow CEO Saw Compensation Jump Nearly 40% in 2025
• Negative Sentiment: Upcoming earnings are flagged as a crucial test; with guidance under scrutiny, the report could amplify volatility in either direction. ServiceNow Shares Face Crucial Test with Upcoming Earnings Report

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in NOW. IAG Wealth Partners LLC grew its position in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 18 shares in the last quarter. Noble Wealth Management PBC grew its position in shares of ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 128 shares in the last quarter. Millstone Evans Group LLC grew its position in shares of ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its holdings in shares of ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new stake in shares of ServiceNow in the 4th quarter worth approximately $25,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Trading Down 2.0%

The firm has a market cap of $104.97 billion, a P/E ratio of 60.17, a P/E/G ratio of 1.71 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a fifty day moving average of $109.76 and a 200-day moving average of $146.19.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. The business 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 revenue was up 20.7% on a year-over-year basis. During the same quarter last year, the business posted $0.73 EPS. Equities research analysts forecast that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

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.