Wells Fargo & Company Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

Key Points

• Wells Fargo lowered ServiceNow’s price target to $175 from $190 while maintaining an “overweight” rating, implying 55.09% upside from the prior close.
• ServiceNow’s shares fell $37.29 to $112.84 after quarterly earnings of $1.00 per share missed estimates, although revenue rose 20.5% year over year to $4.11 billion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $155.55, but concerns over valuation, weaker guidance and the pace of AI monetization are weighing on investors.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective reduced by research analysts at Wells Fargo & Company from $190.00 to $175.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the information technology services provider's stock. Wells Fargo & Company's price target would indicate a potential upside of 55.09% from the company's previous close.

A number of other analysts have also commented on NOW. Yorkville Ives started coverage on ServiceNow in a research note on Monday, October 5th. They issued an "outperform" rating and a $160.00 price target for the company. CLSA initiated coverage on ServiceNow in a research report on Monday, July 20th. They issued an "underperform" rating and a $72.00 target price for the company. Robert W. Baird set a $185.00 price objective on shares of ServiceNow in a report on Thursday. DA Davidson set a $170.00 target price on shares of ServiceNow and gave the stock a "buy" rating in a research note on Monday, July 20th. Finally, Weiss Ratings upgraded ServiceNow from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $155.55.

ServiceNow Price Performance

NYSE NOW traded down $37.29 on Thursday, hitting $112.84. The stock had a trading volume of 25,087,048 shares, compared to its average volume of 21,324,746. The company has a market capitalization of $116.68 billion, a price-to-earnings ratio of 69.67, a price-to-earnings-growth ratio of 2.92 and a beta of 0.99. ServiceNow has a 52-week low of $81.24 and a 52-week high of $192.97. The firm has a 50-day moving average of $139.55 and a 200-day moving average of $115.79. 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 (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.02). The business had revenue of $4.11 billion for 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 firm's revenue for the quarter was up 20.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $4.82 EPS. Equities analysts expect that ServiceNow will post 2.23 EPS for the current year.

Insider Buying and Selling

In other news, insider Paul Fipps sold 2,034 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $147.87, for a total transaction of $300,767.58. Following the sale, the insider owned 18,305 shares in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jacqueline P. Canney sold 7,847 shares of the company's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the sale, the insider owned 30,042 shares in the company, valued at approximately $4,145,796. This represents a 20.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,081 shares of company stock worth $1,937,904 in the last three months. 0.34% of the stock is owned by insiders.

Institutional Trading of ServiceNow

A number of hedge funds have recently added to or reduced their stakes in NOW. Columbia Bank raised its holdings in ServiceNow by 9.5% during the third quarter. Columbia Bank now owns 18,670 shares of the information technology services provider's stock worth $2,502,000 after buying an additional 1,612 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of ServiceNow in the third quarter valued at $65,477,000. ProShare Advisors LLC increased its stake in shares of ServiceNow by 1.0% in the third quarter. ProShare Advisors LLC now owns 197,106 shares of the information technology services provider's stock worth $26,414,000 after purchasing an additional 1,964 shares in the last quarter. Vise Technologies Inc. raised its position in shares of ServiceNow by 26.1% in the third quarter. Vise Technologies Inc. now owns 52,722 shares of the information technology services provider's stock valued at $7,065,000 after purchasing an additional 10,898 shares during the period. Finally, Investment Partners LTD. bought a new position in shares of ServiceNow in the third quarter worth $268,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

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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