Arizona State Retirement System Raises Position in ServiceNow, Inc. $NOW

Key Points

• Arizona State Retirement System boosted its stake in ServiceNow by 384.2% in Q4, acquiring an additional 232,340 shares to hold 292,807 shares worth about $44.9 million.
• ServiceNow beat Q1 revenue expectations and raised its annual subscription-revenue outlook—management cited strong adoption of its AI products and deeper Google Cloud partnership as growth drivers (Q1 revenue $3.77B; EPS $0.97).
• Despite the beat, the completed Armis acquisition and related costs (estimated ~75 bps FY headwind; ~125 bps in Q2), plus delayed large deals in the Middle East and analyst price-target cuts, spooked investors and sent the stock down about 17.7%.

Arizona State Retirement System boosted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 384.2% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 292,807 shares of the information technology services provider's stock after buying an additional 232,340 shares during the period. Arizona State Retirement System's holdings in ServiceNow were worth $44,855,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of NOW. IAG Wealth Partners LLC lifted its position in ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 18 shares during the period. Noble Wealth Management PBC lifted its position in ServiceNow by 400.0% during the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 128 shares during the period. Lodestone Wealth Management LLC purchased a new position in ServiceNow during the 4th quarter valued at about $26,000. Albion Financial Group UT lifted its position in ServiceNow by 400.0% during the 4th quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider's stock valued at $26,000 after acquiring an additional 136 shares during the period. Finally, Avion Wealth lifted its position in ServiceNow by 256.0% during the 4th quarter. Avion Wealth now owns 178 shares of the information technology services provider's stock valued at $27,000 after acquiring an additional 128 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 revenue beat and company raised its annual subscription-revenue outlook, with management citing strong adoption of ServiceNow’s AI products as a growth driver. Earnings Beat & Raise
• Positive Sentiment: Strategic momentum: deeper Google Cloud partnership and CEO comments emphasize AI-led product traction that could drive recurring revenue and long-term monetization. Google Cloud Partnership
• Neutral Sentiment: Armis acquisition completed (adds cyber‑exposure capability), a strategic tuck‑in that expands the product set but increases near‑term integration/expense complexity. Armis Acquisition
• Negative Sentiment: Management warned the Armis deal and acquisition-related costs will weigh on margins (roughly +75 bps FY headwind; ~125 bps in Q2), spooking investors focused on near‑term profitability. Margin Headwind
• Negative Sentiment: Geopolitical impact: ServiceNow cited delayed large deals in the Middle East (Iran conflict) that trimmed subscription growth this quarter — investors treated the disruption as a material near‑term revenue risk. Deal Delays from Iran War
• Negative Sentiment: Wall Street reaction: multiple firms cut price targets and some trimmed forecasts after the call; that wave of downgrades magnified selling pressure. Analyst Price‑Target Cuts
• Negative Sentiment: Sector contagion and positioning: ServiceNow’s miss‑/guidance mix reignited AI-disruption fears across software names, triggering a broad selloff and higher short interest that increased volatility. Sector Selloff

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on NOW shares. Royal Bank Of Canada lowered their price target on shares of ServiceNow from $150.00 to $121.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. HSBC lowered their price target on ServiceNow from $226.00 to $171.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. Oppenheimer set a $130.00 price target on ServiceNow and gave the stock an "outperform" rating in a research report on Wednesday, April 15th. BNP Paribas Exane raised ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price target for the company in a research report on Monday, March 16th. Finally, The Goldman Sachs Group lowered their price target on ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a research report on Thursday. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $147.68.

Insider Buying and Selling at ServiceNow

In related news, insider Paul Fipps sold 3,696 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the sale, the insider directly owned 8,061 shares of the company's stock, valued at approximately $820,367.97. This represents a 31.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider directly owned 26,314 shares of the company's stock, valued at $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 16,237 shares of company stock valued at $1,697,162. Insiders own 0.34% of the company's stock.

ServiceNow Stock Down 17.7%

Shares of NOW stock opened at $84.85 on Friday. ServiceNow, Inc. has a 12 month low of $81.24 and a 12 month high of $211.48. The stock has a market cap of $87.92 billion, a P/E ratio of 50.57, a P/E/G ratio of 1.73 and a beta of 1.01. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The company has a 50 day simple moving average of $105.18 and a two-hundred day simple moving average of $138.45.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting analysts' consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. During the same period in the prior year, the company earned $0.81 earnings per share. The firm's revenue was up 22.1% on a year-over-year basis. On average, research analysts expect that ServiceNow, Inc. will post 2.49 earnings per share for the current year.

ServiceNow Profile

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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