ServiceNow's (NOW) "Outperform" Rating Reaffirmed at Oppenheimer

Key Points

• Oppenheimer reaffirmed its “Outperform” rating on ServiceNow and set a $165 price target, implying approximately 10.33% upside from the reported $149.55 share price.
• Analyst sentiment remains broadly positive: ServiceNow has a “Moderate Buy” consensus rating and an average price target of $155.90, with targets from other firms ranging up to $175.
• ServiceNow’s revenue rose 20.5% year over year to $4.11 billion, exceeding estimates, but quarterly EPS of $1.00 slightly missed consensus and concerns remain about its high valuation and AI-related growth expectations.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "outperform" rating restated by investment analysts at Oppenheimer in a report issued on Thursday, Benzinga reports. They presently have a $165.00 price target on the information technology services provider's stock. Oppenheimer's price target would suggest a potential upside of 10.33% from the company's current price.

NOW has been the topic of several other reports. Jefferies Financial Group set a $145.00 target price on ServiceNow in a report on Thursday. Benchmark restated a "buy" rating on shares of ServiceNow in a report on Friday, July 17th. Piper Sandler reaffirmed an "overweight" rating and issued a $175.00 price target on shares of ServiceNow in a research report on Thursday. Guggenheim restated a "buy" rating and set a $175.00 price objective (up from $125.00) on shares of ServiceNow in a research note on Friday, October 23rd. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $160.00 target price on shares of ServiceNow in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow has an average rating of "Moderate Buy" and an average target price of $155.90.

ServiceNow Price Performance

NOW stock opened at $149.55 on Thursday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The firm has a 50 day moving average price of $139.55 and a 200-day moving average price of $115.79. ServiceNow has a 52-week low of $81.24 and a 52-week high of $192.97. The firm has a market capitalization of $154.63 billion, a price-to-earnings ratio of 93.47, a PEG ratio of 2.92 and a beta of 0.99.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.02 by ($0.02). The company had revenue of $4.11 billion during the quarter, compared to analysts' expectations of $4.09 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The business's quarterly revenue was up 20.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.82 EPS. Equities research analysts forecast that ServiceNow will post 2.23 EPS 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 value of $300,767.58. Following the completion of the sale, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Paul Chamberlain sold 2,700 shares of the business's stock in a transaction that occurred on 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 directly owned 43,990 shares of the company's stock, valued at $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. In the last 90 days, insiders have sold 14,081 shares of company stock worth $1,937,904. Company insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. BlackRock Inc. purchased a new stake in shares of ServiceNow in the 2nd quarter worth $9,536,615,000. State Street Corp lifted its position in ServiceNow by 2.0% during the second quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider's stock valued at $4,868,514,000 after purchasing an additional 979,726 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in ServiceNow by 16.6% during the second 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 valued at $1,651,828,000 after purchasing an additional 2,362,606 shares in the last quarter. Amundi grew its holdings in ServiceNow by 60.9% during the first quarter. Amundi now owns 11,479,098 shares of the information technology services provider's stock valued at $1,200,140,000 after purchasing an additional 4,346,722 shares during the period. Finally, Bank of New York Mellon Corp grew its holdings in ServiceNow by 6.5% during the first 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. Institutional investors own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

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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