TD Cowen Issues Positive Forecast for ServiceNow (NYSE:NOW) Stock Price

Key Points

• TD Cowen raised ServiceNow’s price target to $165 from $140 and maintained a “buy” rating, implying 15.89% upside. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $150.15.
• ServiceNow reported quarterly EPS of $0.90 versus the $0.86 estimate, while revenue reached $3.99 billion, up 24% year over year and ahead of expectations.
• The stock was trading at $142.37, with a market capitalization of $147.21 billion and a high P/E ratio of 89.27. Insiders sold shares recently, while institutional investors own 87.18% of the company.

ServiceNow (NYSE:NOW - Get Free Report) had its target price increased by research analysts at TD Cowen from $140.00 to $165.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a "buy" rating on the information technology services provider's stock. TD Cowen's price target suggests a potential upside of 15.89% from the stock's current price.

Other equities research analysts have also recently issued reports about the stock. Piper Sandler reiterated an "overweight" rating and issued a $140.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Weiss Ratings upgraded ServiceNow from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. BMO Capital Markets boosted their price target on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. JPMorgan Chase & Co. upped their price target on ServiceNow from $145.00 to $150.00 and gave the stock an "overweight" rating in a research note on Thursday, July 23rd. Finally, Needham & Company LLC upped their price target on ServiceNow from $115.00 to $155.00 and gave the stock a "buy" rating in a research note on Friday, September 11th. One equities 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 issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $150.15.

ServiceNow Trading Up 1.7%

NYSE:NOW opened at $142.37 on Thursday. The company has a market capitalization of $147.21 billion, a P/E ratio of 89.27, a P/E/G ratio of 2.55 and a beta of 0.99. The stock's 50 day moving average price is $134.23 and its 200 day moving average price is $113.12. 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 52 week low of $81.24 and a 52 week high of $192.97.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. During the same period in the previous year, the company earned $0.81 earnings per share. The company's revenue was up 24.0% compared to the same quarter last year. On average, research analysts forecast that ServiceNow will post 2.22 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jacqueline P. Canney sold 7,847 shares of the firm's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total value 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. This trade represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed 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 business's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the transaction, the director directly owned 43,990 shares of the company's stock, valued at $5,960,645. This represents a 5.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 14,081 shares of company stock valued at $1,937,904 in the last quarter. Insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Perpetual Ltd boosted its stake in ServiceNow by 12.3% during the 3rd quarter. Perpetual Ltd now owns 6,215 shares of the information technology services provider's stock valued at $833,000 after purchasing an additional 682 shares during the last quarter. Moody National Bank Trust Division lifted its holdings in shares of ServiceNow by 3.9% in the third quarter. Moody National Bank Trust Division now owns 13,038 shares of the information technology services provider's stock valued at $1,747,000 after purchasing an additional 484 shares in the last quarter. Central Pacific Bank Trust Division lifted its holdings in shares of ServiceNow by 7.0% in the third quarter. Central Pacific Bank Trust Division now owns 19,131 shares of the information technology services provider's stock valued at $2,564,000 after purchasing an additional 1,259 shares in the last quarter. Defender Capital LLC. bought a new position in shares of ServiceNow in the third quarter valued at approximately $268,000. Finally, First Financial Bank Trust Division bought a new position in shares of ServiceNow in the third quarter valued at approximately $5,511,000. 87.18% of the stock is owned by institutional investors.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s revenue has grown faster year over year than Salesforce’s over the past eight quarters, with consistent sequential gains and no notable seasonal declines. The trend reinforces the company’s position as a high-growth enterprise software provider. Salesforce vs. ServiceNow revenue trends
• Positive Sentiment: Oppenheimer indicated that ServiceNow is well positioned for a favorable third-quarter outcome, citing encouraging channel checks. It also raised its price target, while another analyst called NOW a top software pick with potential growth acceleration into fiscal 2027 from AI, security and usage-based products. ServiceNow favorable Q3 outlook
• Positive Sentiment: ServiceNow and Stagwell announced a three-year collaboration to modernize enterprise marketing. The arrangement gives ServiceNow access to Stagwell’s agencies and AI-powered operating system, potentially expanding workflow usage and customer adoption. Stagwell and ServiceNow collaboration
• Positive Sentiment: ServiceNow’s AI business has reached a milestone that analysts view as a possible new billion-dollar growth engine, adding to the investment case despite the recent selloff. ServiceNow AI growth engine
• Neutral Sentiment: ServiceNow denied reports that it was pursuing AI customer-support startup Decagon. The denial removes immediate takeover speculation, but investors remain focused on whether the company will continue making large acquisitions after its recent multibillion-dollar deals. Jefferies maintained a buy rating and a $140 target. ServiceNow denies Decagon acquisition interest
• Negative Sentiment: Comparisons with Salesforce favor CRM on earnings-estimate revisions, AI growth and valuation, potentially limiting NOW’s relative appeal. ServiceNow also trades at a premium valuation—roughly 73 times earnings—so investors need stronger cash-flow growth to justify the multiple. Salesforce versus ServiceNow AI stock 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.

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