Argus Forecasts Strong Price Appreciation for ServiceNow (NYSE:NOW) Stock

Key Points

• Argus raised ServiceNow’s price target to $170 from $134 and maintained a “Buy” rating, implying 23.06% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $146.46.
• ServiceNow reported quarterly earnings and revenue above analyst expectations, with revenue increasing 24% year over year to $3.99 billion. The company is also expanding its AI strategy through products such as AI Workflow Factory and Autonomous Engineer.
• The stock carries a high valuation, including a P/E ratio of 86.34, while insiders have sold shares worth about $1.94 million over the past 90 days. Continued growth in AI adoption and execution may be needed to justify the premium valuation.

ServiceNow (NYSE:NOW - Get Free Report) had its price target upped by equities research analysts at Argus from $134.00 to $170.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the information technology services provider's stock. Argus' price objective would indicate a potential upside of 23.06% from the company's previous close.

Several other brokerages also recently issued reports on NOW. Weiss Ratings upgraded ServiceNow from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, August 20th. Needham & Company LLC increased their target price on ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a report on Friday, September 11th. Guggenheim upgraded ServiceNow from a "neutral" rating to a "buy" rating and set a $125.00 target price for the company in a research note on Wednesday, July 1st. Bank of America lifted their price target on ServiceNow from $130.00 to $150.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on shares of ServiceNow from $135.00 to $155.00 and gave the stock a "buy" rating in a research report on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $146.46.

ServiceNow Price Performance

NYSE:NOW opened at $138.14 on Wednesday. The firm has a market cap of $142.84 billion, a PE ratio of 86.34, a price-to-earnings-growth ratio of 2.50 and a beta of 0.99. ServiceNow has a 12 month low of $81.24 and a 12 month high of $192.97. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company's 50-day moving average price is $131.24 and its two-hundred day moving average price is $111.77.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. The company had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company's revenue was up 24.0% on a year-over-year basis. During the same quarter last year, the business posted $0.81 earnings per share. On average, equities analysts anticipate that ServiceNow will post 2.22 EPS for the current fiscal year.

Insider Activity

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the company's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. This represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the company's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction of $365,850.00. Following the transaction, the director owned 43,990 shares in the company, valued at approximately $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 14,081 shares of company stock valued at $1,937,904 over the last 90 days. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Hedge funds and other institutional investors have recently bought and sold shares of the business. Howard Hughes Medical Institute lifted its stake in shares of ServiceNow by 404.5% in the 4th quarter. Howard Hughes Medical Institute now owns 222 shares of the information technology services provider's stock valued at $34,000 after purchasing an additional 178 shares during the period. Cornerstone Financial Management LLC grew its stake in shares of ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 107 shares during the period. CrossGen Wealth LLC bought a new stake in ServiceNow in the first quarter valued at about $29,000. Caitong International Asset Management Co. Ltd lifted its stake in ServiceNow by 4,157.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 298 shares of the information technology services provider's stock valued at $46,000 after buying an additional 291 shares during the period. Finally, Marquette Asset Management LLC lifted its stake in ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after buying an additional 129 shares during the period. 87.18% of the stock is owned by institutional investors.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: UBS raised its price target after channel checks indicated stable-to-improving third-quarter demand. The firm cited stronger interest in AI and security and increased its estimates for current remaining performance obligations and subscription-revenue growth by 50 basis points. UBS expects a normal guidance beat rather than an outsized surprise. ServiceNow demand trends show improvement as UBS raises price target
• Positive Sentiment: ServiceNow launched AI Workflow Factory and Autonomous Engineer, designed to identify automation opportunities and build, operate and extend AI-powered workflows across enterprises. The products strengthen the company’s effort to monetize agentic AI and address fragmented legacy systems. ServiceNow launches AI Workflow Factory
• Positive Sentiment: Analyst commentary highlighted potential momentum in AI consumption, while recent reports said ServiceNow has surpassed $1 billion in AI contract value and that roughly half of net-new revenue is now non-seat-based. That shift could expand monetization beyond traditional user licenses. ServiceNow AI adoption and enterprise spending
• Neutral Sentiment: New integrations, including Work4Flow and LogicMonitor’s agent-to-agent capabilities, may improve ServiceNow’s ecosystem and practical AI deployment, but the reports did not provide material financial guidance. Work4Flow and LogicMonitor deepen AI investigations
• Negative Sentiment: ServiceNow trades at a substantial premium to Salesforce on cash-flow measures, and some customers remain uncertain about AI-enabled products and pricing. With a high valuation, the stock may require continued strong growth and execution to justify its multiple. Salesforce vs. ServiceNow AI software comparison

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company's products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.