ServiceNow (NYSE:NOW) Stock Price Down 3.5% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW)’s share price traded down 3.5% during trading on Thursday . The company traded as low as $91.53 and last traded at $92.1480. 47,633,826 shares traded hands during trading, an increase of 99% from the average session volume of 23,881,861 shares. The stock had previously closed at $95.46.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s Q2 results showed robust growth, with revenue up about 24% year over year and subscription revenue accelerating, reinforcing that demand for its platform remains strong. Article Title
• Positive Sentiment: Management raised guidance and highlighted AI momentum, including AI contract value topping $1 billion and expanding enterprise adoption, which supports the case for continued growth. Article Title
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after earnings, reflecting renewed confidence in ServiceNow’s outlook and valuation upside. Article Title
• Positive Sentiment: New partnerships and channel expansions, including deals with Experian, TeamViewer, and Exclusive Networks, suggest broader adoption of ServiceNow’s AI and cybersecurity offerings. Article Title
• Neutral Sentiment: Investors are also watching mixed signals from insider and institutional trading, with some large funds trimming positions even as others add shares; this appears more like portfolio rebalancing than a clear fundamental warning. Article Title
• Negative Sentiment: Despite the earnings beat, some commentary says the stock’s rally may be vulnerable if AI disruption fears return, especially around usage-based pricing and long-term software demand. Article Title

Wall Street Analysts Forecast Growth

NOW has been the topic of several analyst reports. BTIG Research reissued a “buy” rating and issued a $150.00 target price on shares of ServiceNow in a research note on Wednesday. Morgan Stanley set a $180.00 target price on ServiceNow in a research report on Tuesday. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a research note on Friday, July 17th. Bank of America assumed coverage on shares of ServiceNow in a research report on Monday, May 18th. They issued a “buy” rating and a $130.00 price target on the stock. Finally, BMO Capital Markets lifted their price objective on shares of ServiceNow from $115.00 to $118.00 and gave the stock an “outperform” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $143.39.

ServiceNow Price Performance

The company has a current ratio of 0.70, a quick ratio of 0.84 and a debt-to-equity ratio of 0.43. The firm has a market cap of $101.83 billion, a P/E ratio of 61.73, a PEG ratio of 1.54 and a beta of 0.96. The company has a fifty day moving average price of $104.77 and a two-hundred day moving average price of $107.70.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.ServiceNow’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.81 EPS. Equities analysts anticipate that ServiceNow, Inc. will post 2.33 earnings per share for the current year.

Insider Activity

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director directly owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,144 shares of company stock worth $1,730,097 over the last quarter. 0.34% of the stock is currently owned by company insiders.

Institutional Trading of ServiceNow

Institutional investors have recently modified their holdings of the company. Covenant Asset Management LLC raised its stake in ServiceNow by 169.2% in the 4th quarter. Covenant Asset Management LLC now owns 20,863 shares of the information technology services provider’s stock valued at $3,196,000 after acquiring an additional 13,114 shares during the period. Norges Bank bought a new position in ServiceNow during the fourth quarter worth $2,020,992,000. World Investment Advisors increased its holdings in shares of ServiceNow by 411.7% in the fourth quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider’s stock valued at $7,346,000 after purchasing an additional 38,583 shares during the last quarter. Cohen Klingenstein LLC increased its holdings in shares of ServiceNow by 400.0% in the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock valued at $1,532,000 after purchasing an additional 8,000 shares during the last quarter. Finally, Moors & Cabot Inc. raised its position in shares of ServiceNow by 387.7% in the fourth quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider’s stock valued at $6,990,000 after purchasing an additional 36,274 shares during the period. 87.18% of the stock is currently owned by institutional investors.

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.