ServiceNow (NYSE:NOW) Stock Rating Reaffirmed as Buy by Argus

Key Points

• Argus reaffirmed its Buy rating on ServiceNow and set a $170 price target, implying 60.44% potential upside from the prior close.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a Moderate Buy consensus and an average target price of $154.50, despite some divergent ratings.
• ServiceNow’s latest quarter showed 20.5% year-over-year revenue growth to $4.11 billion, slightly above estimates, but EPS of $1.00 missed expectations; insiders have also sold roughly $1.94 million of stock over the past 90 days.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "buy" rating reiterated by Argus in a research note issued on Tuesday, Benzinga reports. They currently have a $170.00 price target on the information technology services provider's stock. Argus's target price would indicate a potential upside of 60.44% from the stock's previous close.

NOW has been the subject of a number of other research reports. Yorkville Ives assumed coverage on ServiceNow in a research report on Monday, October 5th. They set an "outperform" rating and a $160.00 price target for the company. Robert W. Baird set a $185.00 target price on ServiceNow in a report on Thursday. CLSA initiated coverage on ServiceNow in a research report on Monday, July 20th. They issued an "underperform" rating and a $72.00 target price on the stock. BMO Capital Markets upped their target price on ServiceNow from $115.00 to $118.00 and gave the company an "outperform" rating in a research report on Thursday, July 23rd. Finally, Wells Fargo & Company cut their price target on shares of ServiceNow from $190.00 to $175.00 and set an "overweight" rating on the stock in a report on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus target price of $154.50.

ServiceNow Stock Up 0.8%

NYSE:NOW opened at $105.96 on Tuesday. The company's 50-day simple moving average is $138.25 and its 200-day simple moving average is $115.29. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $184.43. The stock has a market capitalization of $109.56 billion, a P/E ratio of 76.23, a P/E/G ratio of 2.75 and a beta of 0.99.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly 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). The business had revenue of $4.11 billion for the quarter, compared to analyst estimates of $4.09 billion. ServiceNow had a return on equity of 15.38% and a net margin of 9.36%. The business's revenue for the quarter was up 20.5% on a year-over-year basis. During the same period in the previous year, the company posted $4.82 earnings per share. On average, equities analysts anticipate that ServiceNow will post 2.14 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other news, insider Paul Fipps sold 2,034 shares of ServiceNow stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the business's stock in a transaction 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 completion of the transaction, the insider owned 30,042 shares of the company's stock, valued at approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NOW. Cornerstone Financial Management LLC increased its position in shares of ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock valued at $25,000 after buying an additional 107 shares in the last quarter. Marquette Asset Management LLC increased its holdings in ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock worth $30,000 after acquiring an additional 129 shares in the last quarter. Kilter Group LLC acquired a new position in ServiceNow during the second quarter worth $31,000. Solstein Capital LLC purchased a new position in ServiceNow during the second quarter valued at $35,000. Finally, Pathway Financial Advisers LLC purchased a new position in ServiceNow during the third quarter valued at $38,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s expanding customer base, steady revenue growth and accelerating demand for AI-driven workflow solutions support the bullish case. The company has also demonstrated more consistent top-line growth than UiPath, with no sequential revenue declines reported over the past two years. Why ServiceNow Stock Is a Buy Now ServiceNow vs. UiPath: Consistent Revenue Growth
• Positive Sentiment: The Control Tower Alliance, formed with partners including OpenAI, NVIDIA, AWS, Cisco and Anthropic, strengthens ServiceNow’s position in enterprise AI governance. Expanded work with OpenAI, Google Cloud and Hewlett Packard Enterprise could create additional demand for AI workflows, security and support products. ServiceNow Rolls Out Control Tower Alliance
• Positive Sentiment: Some analysts view the post-earnings decline as a buying opportunity, citing ServiceNow’s growth outlook, cash-generation potential and long-term AI opportunity. ServiceNow: The Post-Earnings Dip Is a Major Opportunity
• Neutral Sentiment: Compared with Adobe, ServiceNow offers faster revenue growth through AI-powered workflow automation and enterprise integrations, but Adobe remains more profitable. This highlights both NOW’s growth appeal and its premium valuation risk. Adobe vs. ServiceNow
• Negative Sentiment: The main pressure came from the earnings reaction: quarterly revenue of $4.11 billion exceeded expectations slightly, but EPS missed estimates, while increased investments to accelerate AI adoption and business-model changes caused a notable decline in operating margins. Top 5 Analyst Questions From ServiceNow’s Q3 Earnings Call
• Negative Sentiment: Broader concerns that agentic AI could reduce the value of seat-based software subscriptions have intensified growth and valuation fears across the software sector, making ServiceNow a prominent test case for the theme. ServiceNow and Agentic-AI Software Concerns

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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