BTIG Research Has Lowered Expectations for ServiceNow (NYSE:NOW) Stock Price

Key Points

• BTIG Research lowered ServiceNow’s price target from $170 to $150 while maintaining a “buy” rating, implying roughly 0.3% upside from the stock’s current price. Analysts overall maintain a “Moderate Buy” consensus with an average target of $155.90.
• ServiceNow reported third-quarter revenue of $4.11 billion, up 20.5% year over year and slightly above estimates, but EPS of $1.00 missed the $1.02 consensus. Concerns about weaker guidance, valuation and the pace of AI monetization continue to weigh on investor sentiment.
• Institutional investors own 87.18% of ServiceNow’s shares, while insiders have sold approximately $1.94 million worth of stock over the past 90 days.

ServiceNow (NYSE:NOW - Get Free Report) had its target price decreased by investment analysts at BTIG Research from $170.00 to $150.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the information technology services provider's stock. BTIG Research's target price suggests a potential upside of 0.30% from the stock's current price.

A number of other research firms also recently issued reports on NOW. Morgan Stanley reiterated an "overweight" rating and set a $160.00 price objective on shares of ServiceNow in a report on Thursday. JPMorgan Chase & Co. boosted their target price on ServiceNow from $145.00 to $150.00 and gave the company an "overweight" rating in a research note on Thursday, July 23rd. Yorkville Ives assumed coverage on ServiceNow in a research note on Monday, October 5th. They issued an "outperform" rating and a $160.00 target price on the stock. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ServiceNow in a research report on Monday, August 3rd. Finally, TD Cowen upped their target price on shares of ServiceNow from $140.00 to $165.00 and gave the company a "buy" rating in a report on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus target price of $155.90.

ServiceNow Price Performance

NOW stock opened at $149.55 on Thursday. The stock has a 50-day moving average price of $139.55 and a two-hundred day moving average price of $115.79. ServiceNow has a 1 year low of $81.24 and a 1 year high of $192.97. The stock has a market cap of $154.63 billion, a PE ratio of 93.47, a price-to-earnings-growth ratio of 2.92 and a beta of 0.99. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). The firm had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The business's revenue for the quarter was up 20.5% on a year-over-year basis. During the same quarter last year, the firm earned $4.82 earnings per share. Equities analysts forecast that ServiceNow will post 2.23 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction that occurred on 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 sale, the insider directly owned 30,042 shares of the company's stock, valued at approximately $4,145,796. The trade was a 20.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available 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 that occurred on Thursday, August 27th. The stock was 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 of the company's stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by corporate insiders.

Institutional Trading of ServiceNow

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of ServiceNow during the second quarter valued at $9,536,615,000. Bank of New York Mellon Corp acquired a new position in shares of ServiceNow during the second quarter worth $712,573,000. Legal & General Group Plc bought a new stake in shares of ServiceNow in the second quarter worth $641,888,000. Bank of America Corp DE bought a new stake in shares of ServiceNow in the second quarter worth $627,355,000. Finally, Deutsche Bank AG acquired a new stake in ServiceNow in the second quarter valued at $595,157,000. Institutional investors and hedge funds own 87.18% of the company's stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Revenue and subscription growth remained strong. Third-quarter revenue rose 20.5% year over year to $4.11 billion, exceeding the $4.09 billion consensus estimate. Subscription revenue increased 21% to $3.99 billion. ServiceNow Reports Third Quarter 2026 Financial Results
• Positive Sentiment: AI partnerships and customer adoption support the long-term story. ServiceNow expanded its partnership with OpenAI to connect AI reasoning with governed enterprise workflows, cybersecurity and agentic development. HPE also selected ServiceNow for a five-year, AI-powered support-services agreement. ServiceNow and OpenAI Partnership
• Positive Sentiment: Some analysts see substantial upside. Piper Sandler reaffirmed its overweight rating with a $175 price target, while JPMorgan and another prominent Wall Street firm reportedly see meaningful appreciation potential if ServiceNow’s AI monetization accelerates. MarketWatch Analyst Commentary
• Neutral Sentiment: New AI initiatives have not yet resolved investor skepticism. ServiceNow launched a Control Tower Alliance with companies including Anthropic, AWS and Cisco to help enterprises deploy AI safely, but investors remain focused on measurable revenue and backlog acceleration. ServiceNow Control Tower Alliance
• Negative Sentiment: Earnings and guidance disappointed. Adjusted earnings of $1.00 per share missed the $1.02 consensus estimate, ending a six-quarter earnings-beat streak. Fourth-quarter revenue guidance reportedly came in below Wall Street expectations, intensifying concerns about slowing demand and backlog growth. ServiceNow Shares Sink on Earnings Miss and Weak Outlook
• Negative Sentiment: Valuation and sector fears amplify the reaction. With ServiceNow trading at a high earnings multiple, investors are demanding stronger evidence that AI will accelerate—not cannibalize—software revenue. The selloff also pressured software-focused ETFs and other technology stocks. ServiceNow Weak Forecast and Wall Street Reaction

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.

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