ServiceNow (NYSE:NOW) Stock Gets Price Target Reduction from Wells Fargo & Company

ServiceNow (NYSE:NOW) had its price target trimmed by Wells Fargo & Company from $190.00 to $175.00 in a report issued on Thursday morning,Benzinga reports. They currently have an overweight rating on the information technology services provider’s stock.

A number of other brokerages also recently weighed in on NOW. Robert W. Baird set a $185.00 price target on shares of ServiceNow in a report on Thursday. Benchmark restated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. UBS Group reaffirmed an “underweight” rating on shares of ServiceNow in a research report on Thursday. Zacks Research cut shares of ServiceNow from a “hold” rating to a “strong sell” rating in a research note on Monday, October 19th. Finally, Piper Sandler reiterated an “overweight” rating and issued a $175.00 target price on shares of ServiceNow in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $154.50.

ServiceNow Stock Down 4.1%

NOW opened at $105.12 on Thursday. ServiceNow has a 1-year low of $81.24 and a 1-year high of $189.53. The company has a current ratio of 0.72, a quick ratio of 0.70 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $109.11 billion, a price-to-earnings ratio of 75.63, a P/E/G ratio of 1.94 and a beta of 0.99. The business has a 50 day moving average of $138.71 and a 200-day moving average of $115.45.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The company had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.09 billion. During the same period last year, the firm posted $4.82 EPS. The company’s revenue was up 20.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that ServiceNow will post 2.14 earnings per share for the current year.

Insider Activity at ServiceNow

In related news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares of the company’s stock, valued at $5,960,645. This represents a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Paul Fipps sold 2,034 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider owned 18,305 shares of the company’s stock, valued at approximately $2,706,760.35. This represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 14,081 shares of company stock valued at $1,937,904 over the last quarter. 0.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Several large investors have recently modified their holdings of NOW. BlackRock Inc. bought a new position in ServiceNow in the second quarter valued at about $9,536,615,000. State Street Corp raised its holdings in ServiceNow by 2.0% during the 2nd quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider’s stock worth $4,868,514,000 after purchasing an additional 979,726 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in ServiceNow by 16.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,638,071 shares of the information technology services provider’s stock worth $1,651,828,000 after purchasing an additional 2,362,606 shares during the last quarter. Amundi raised its holdings in ServiceNow by 60.9% during the 1st quarter. Amundi now owns 11,479,098 shares of the information technology services provider’s stock worth $1,200,140,000 after purchasing an additional 4,346,722 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its position in ServiceNow by 6.5% during the 1st quarter. Bank of New York Mellon Corp now owns 8,526,931 shares of the information technology services provider’s stock valued at $891,491,000 after purchasing an additional 518,263 shares during the period. 87.18% of the stock is currently owned by institutional investors.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported 20.5% year-over-year revenue growth, supported by subscription demand, and raised its 2026 artificial-intelligence contract target to $1.7 billion. Management and bullish analysts argue that AI adoption could accelerate growth in 2027. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts continue to rate NOW Buy or Overweight despite reducing their price targets. JPMorgan, Piper Sandler, Wells Fargo and Oppenheimer still see substantial long-term upside, suggesting the sell-off may have been excessive. ServiceNow stock is on track for its largest drop on record
• Positive Sentiment: A new partnership with BDO Canada will help organizations govern AI and automate operations using ServiceNow’s platform, providing potential support for future enterprise demand. BDO Canada partners with ServiceNow
• Neutral Sentiment: ServiceNow’s CEO has defended the company’s valuation and long-term opportunity, while a reported $3 million insider stock purchase may signal management confidence. However, such commentary has not offset investor concerns about guidance. ServiceNow CEO makes striking unicorn claim
• Negative Sentiment: The primary catalyst for the sell-off was management’s forecast for slower fourth-quarter current remaining performance obligation growth—about 18.5%, below the approximately 21.5% revenue-growth outlook. Because cRPO represents contracted future revenue, investors viewed the gap as a warning that demand may be weakening. ServiceNow Guides to Slower Backlog Growth
• Negative Sentiment: Third-quarter adjusted earnings of $1.00 per share fell short of the $1.02 consensus estimate. The miss, combined with concerns that AI could disrupt traditional software pricing and demand, overshadowed the revenue beat and higher AI target. ServiceNow shares plunge after earnings
• Negative Sentiment: Investors are also monitoring ServiceNow’s roughly $7.5 billion debt load and rising interest costs, while a shareholder investigation into potential securities-law violations adds reputational and legal uncertainty. ServiceNow’s Debt and Interest Costs Jump

About ServiceNow

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.