ServiceNow, Inc. (NYSE:NOW) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• ServiceNow has a “Moderate Buy” consensus rating from 42 brokerages, with 36 buy ratings and an average 12-month price target of $146.51. Recent targets range from $140 to $174.
• The company reported quarterly revenue of $3.99 billion, up 24% year over year, and EPS of $0.90, exceeding analyst expectations.
• ServiceNow benefits from demand for workflow automation and AI capabilities, but its premium valuation—about 86 times earnings—and competition from Salesforce and Microsoft remain key risks.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the forty-two brokerages that are currently covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, three have given a hold recommendation, thirty-six have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $146.5122.

A number of research analysts have weighed in on NOW shares. Oppenheimer reaffirmed an "outperform" rating and set a $140.00 price target (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Bank of America increased their target price on ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. BTIG Research upped their price target on shares of ServiceNow from $150.00 to $170.00 and gave the stock a "buy" rating in a research note on Tuesday, September 8th. Weiss Ratings raised shares of ServiceNow from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, August 20th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $140.00 price target on shares of ServiceNow in a research report on Thursday, July 23rd.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Cantor Fitzgerald raised its price target from $141 to $174 and maintained an “overweight” rating, implying substantial upside from the recent trading level. The upgrade reflects confidence in ServiceNow’s enterprise software growth and AI strategy. Cantor Fitzgerald Boosts ServiceNow Price Target
• Positive Sentiment: ServiceNow continues to benefit from strong demand for workflow-automation software, cross-selling across its customer base and partnerships aimed at expanding AI capabilities. These factors could help sustain growth as enterprises invest in productivity and digital transformation. NOW Rides on Strong Workflow Demand
• Neutral Sentiment: Analyst opinion remains divided because ServiceNow is attempting to position itself as a major AI-software disruptor while facing intensifying competition from Salesforce and Microsoft. The wide range of bullish and bearish views highlights uncertainty over how quickly AI will translate into incremental revenue and earnings. Bull v. Bear: NOW Seeks to Become Disruptor
• Negative Sentiment: ServiceNow’s valuation remains a concern for value-oriented investors. A comparison with TD SYNNEX underscores that NOW trades more on premium growth expectations than traditional value metrics, leaving the stock vulnerable if growth or AI monetization disappoints. SNX vs. NOW: Which Stock Is the Better Value Option?

Insiders Place Their Bets

In other news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jacqueline P. Canney sold 7,847 shares of the business'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 transaction of $1,082,886.00. Following the transaction, the insider directly owned 30,042 shares in the company, valued at $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 14,081 shares of company stock worth $1,937,904. Corporate insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. bought a new position in ServiceNow during the second quarter valued at approximately $9,536,615,000. State Street Corp raised its holdings in shares of ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of ServiceNow by 404.8% during the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock valued at $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of ServiceNow by 16.6% in 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 worth $1,651,828,000 after buying an additional 2,362,606 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of ServiceNow during the 4th quarter worth about $2,020,992,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Price Performance

NOW stock opened at $137.75 on Tuesday. The firm has a market cap of $142.43 billion, a P/E ratio of 86.09, a PEG ratio of 2.49 and a beta of 0.97. The stock's 50 day moving average price is $123.90 and its 200 day moving average price is $110.30. ServiceNow has a 1 year low of $81.24 and a 1 year high of $194.73. 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 released 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. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm's quarterly revenue was up 24.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS. On average, sell-side analysts expect that ServiceNow will post 2.22 earnings per share for the current fiscal year.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that provides digital workflow and automation solutions. Its Now Platform enables organizations to manage and connect business processes across information technology, customer service, human resources, finance, legal operations and other departments.

The company's products and services include IT service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance management, strategic portfolio management and application development tools.

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