Arrowstreet Capital Limited Partnership Grows Stock Position in ServiceNow, Inc. $NOW

Key Points

• Arrowstreet Capital dramatically increased its ServiceNow stake by 675.2% in the fourth quarter, buying more than 1.3 million additional shares and ending with about 1.5 million shares valued at roughly $229.5 million.
• ServiceNow reported Q1 earnings and revenue that matched or slightly topped expectations, with EPS of $0.97 and revenue of $3.77 billion, while revenue rose 22.1% year over year.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and an average price target of $141.85, even though several firms recently trimmed their individual targets.

Arrowstreet Capital Limited Partnership lifted its stake in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 675.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,497,914 shares of the information technology services provider's stock after purchasing an additional 1,304,675 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.14% of ServiceNow worth $229,465,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. IAG Wealth Partners LLC raised its stake in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its position in ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 128 shares in the last quarter. Millstone Evans Group LLC raised its position in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its position in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC purchased a new position in ServiceNow in the fourth quarter worth $25,000. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Up 0.2%

ServiceNow stock opened at $102.34 on Monday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market capitalization of $105.51 billion, a price-to-earnings ratio of 60.99, a price-to-earnings-growth ratio of 1.69 and a beta of 0.94. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The stock's fifty day moving average is $99.80 and its two-hundred day moving average is $119.74.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. The company had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.ServiceNow's revenue was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.81 earnings per share. Analysts predict that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Analyst Ratings Changes

NOW has been the subject of several research analyst reports. Needham & Company LLC reiterated a "buy" rating and issued a $115.00 price objective on shares of ServiceNow in a research report on Tuesday, May 5th. Benchmark initiated coverage on ServiceNow in a research report on Wednesday, April 1st. They issued a "buy" rating and a $125.00 price objective for the company. The Goldman Sachs Group cut their price objective on ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft cut their price objective on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $135.00 price objective (down from $175.00) on shares of ServiceNow in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $141.85.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director owned 44,930 shares of the company's stock, valued at approximately $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 28,071 shares of company stock worth $2,529,956 over the last ninety days. 0.34% of the stock is currently owned by company insiders.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow lifted its 2026 AI revenue target to $1.5 billion, signaling that demand for Now Assist is strong and that customers are expanding AI deployments and spending more on the platform. Can Strong Demand in Now Assist Boost ServiceNow's AI Revenue Growth?
• Positive Sentiment: IBM and ServiceNow announced a partnership aimed at helping enterprises modernize legacy IT systems and scale agentic AI, which could support longer-term adoption of ServiceNow’s workflow automation and AI tools. IBM And ServiceNow Target Enterprise AI Scale While Seeding Future Talent
• Positive Sentiment: Analysts and commentators highlighted ServiceNow as a potential AI winner in the second half of 2026, reinforcing the market’s view that the company could benefit from rising enterprise AI spending. The AI Trade Nobody Is Making Right Now -- and Why It Could Be 2026's Best Opportunity
• Neutral Sentiment: ServiceNow and IBM also drew attention for targeting legacy IT modernization, but the immediate impact on the stock is likely more strategic than near-term financial. ServiceNow, IBM team up to target legacy IT
• Negative Sentiment: The stock has also been under pressure from profit-taking and a broader selloff in software names, which has weighed on sentiment despite the company’s AI growth narrative. What's Going On With ServiceNow Stock Thursday?
• Negative Sentiment: Reports of additional Bay Area tech job cuts added to concerns about the broader enterprise software and technology labor backdrop, though this is not specific to ServiceNow’s core results. ServiceNow, Salesforce, other tech firms reveal more Bay Area job cuts

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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