156,280 ServiceNow, Inc. $NOW Shares Sold by VIRGINIA RETIREMENT SYSTEMS ET Al

Key Points

• Virginia Retirement Systems reduced its ServiceNow position by 54.9% in the third quarter, selling 156,280 shares and retaining 128,522 shares valued at approximately $17.2 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported 20.5% year-over-year revenue growth to $4.11 billion, but adjusted EPS of $1.00 missed estimates and management forecast slower fourth-quarter current remaining performance obligation growth, fueling investor concerns about future demand.
• NOW shares opened at $105.12, down 4.1%, while analysts maintained a “Moderate Buy” consensus with an average price target of $154.50. Bullish views on AI-driven growth contrast with concerns over valuation, debt and the company’s slowing backlog outlook.

VIRGINIA RETIREMENT SYSTEMS ET Al lessened its position in ServiceNow, Inc. (NYSE:NOW - Free Report) by 54.9% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 128,522 shares of the information technology services provider's stock after selling 156,280 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al's holdings in ServiceNow were worth $17,223,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in NOW. Bank of Nova Scotia grew its stake in shares of ServiceNow by 53.3% during the 1st quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider's stock worth $106,436,000 after purchasing an additional 353,749 shares during the period. Sapient Capital LLC increased its holdings in shares of ServiceNow by 266.0% in the 2nd quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider's stock valued at $7,710,000 after purchasing an additional 56,444 shares in the last quarter. Meeder Advisory Services Inc. purchased a new position in shares of ServiceNow in the 2nd quarter valued at about $2,881,000. Vestor Capital LLC lifted its stake in shares of ServiceNow by 38,987.2% in the first quarter. Vestor Capital LLC now owns 122,343 shares of the information technology services provider's stock valued at $12,791,000 after purchasing an additional 122,030 shares during the period. Finally, Cardano Risk Management B.V. lifted its stake in shares of ServiceNow by 6.9% in the second quarter. Cardano Risk Management B.V. now owns 484,785 shares of the information technology services provider's stock valued at $48,129,000 after purchasing an additional 31,119 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported 20.5% year-over-year revenue growth, supported by subscription demand, and raised its 2026 artificial-intelligence contract target to $1.7 billion. Management and bullish analysts argue that AI adoption could accelerate growth in 2027. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts continue to rate NOW Buy or Overweight despite reducing their price targets. JPMorgan, Piper Sandler, Wells Fargo and Oppenheimer still see substantial long-term upside, suggesting the sell-off may have been excessive. ServiceNow stock is on track for its largest drop on record
• Positive Sentiment: A new partnership with BDO Canada will help organizations govern AI and automate operations using ServiceNow’s platform, providing potential support for future enterprise demand. BDO Canada partners with ServiceNow
• Neutral Sentiment: ServiceNow’s CEO has defended the company’s valuation and long-term opportunity, while a reported $3 million insider stock purchase may signal management confidence. However, such commentary has not offset investor concerns about guidance. ServiceNow CEO makes striking unicorn claim
• Negative Sentiment: The primary catalyst for the sell-off was management’s forecast for slower fourth-quarter current remaining performance obligation growth—about 18.5%, below the approximately 21.5% revenue-growth outlook. Because cRPO represents contracted future revenue, investors viewed the gap as a warning that demand may be weakening. ServiceNow Guides to Slower Backlog Growth
• Negative Sentiment: Third-quarter adjusted earnings of $1.00 per share fell short of the $1.02 consensus estimate. The miss, combined with concerns that AI could disrupt traditional software pricing and demand, overshadowed the revenue beat and higher AI target. ServiceNow shares plunge after earnings
• Negative Sentiment: Investors are also monitoring ServiceNow’s roughly $7.5 billion debt load and rising interest costs, while a shareholder investigation into potential securities-law violations adds reputational and legal uncertainty. ServiceNow’s Debt and Interest Costs Jump

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. KeyCorp reiterated an "underweight" rating and set a $110.00 price target (up from $85.00) on shares of ServiceNow in a research report on Thursday. UBS Group restated an "underweight" rating on shares of ServiceNow in a report on Thursday. Sanford C. Bernstein restated an "outperform" rating and issued a $266.00 price target on shares of ServiceNow in a report on Tuesday, October 20th. Citigroup dropped their price objective on ServiceNow from $170.00 to $157.00 and set a "buy" rating for the company in a research note on Thursday. Finally, Guggenheim reiterated a "buy" rating and set a $175.00 target price (up from $125.00) on shares of ServiceNow in a research report on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $154.50.

ServiceNow Trading Down 4.1%

Shares of NOW stock opened at $105.12 on Friday. The company has a market capitalization of $109.11 billion, a price-to-earnings ratio of 75.63, a PEG ratio of 1.94 and a beta of 0.99. The company has a current ratio of 0.72, a quick ratio of 0.70 and a debt-to-equity ratio of 0.42. The firm has a 50-day moving average price of $138.71 and a 200 day moving average price of $115.45. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $189.53.

ServiceNow (NYSE:NOW - Get Free Report) last announced its 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 firm had revenue of $4.11 billion for the quarter, compared to analyst estimates of $4.09 billion. ServiceNow had a return on equity of 15.17% and a net margin of 9.36%. The firm's revenue was up 20.5% compared to the same quarter last year. During the same quarter last year, the business posted $4.82 EPS. Research analysts forecast that ServiceNow, Inc. will post 2.14 earnings per share for the current fiscal year.

Insider Buying and Selling

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction 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 transaction, the director owned 43,990 shares in the company, valued at $5,960,645. This trade represents a 5.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jacqueline Canney sold 7,847 shares of the stock in a transaction on 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 completion of the transaction, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 14,081 shares of company stock valued at $1,937,904. Insiders own 0.34% of the company's stock.

ServiceNow Company Profile

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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