Baird Financial Group Inc. Acquires 86,616 Shares of ServiceNow, Inc. $NOW

Key Points

• Baird Financial Group increased its ServiceNow stake by 20.9% in the second quarter, purchasing 86,616 additional shares and bringing its holdings to 500,418 shares valued at approximately $49.7 million. Institutional investors collectively own 87.18% of the company.
• ServiceNow reported quarterly EPS of $0.90, beating estimates of $0.86, while revenue rose 24% year over year to $3.99 billion. The stock was trading down 2.4%, despite continued expectations for strong growth.
• Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $144.73, although premium valuation, competition, execution risks and recent insider selling remain concerns.

Baird Financial Group Inc. grew its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 20.9% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 500,418 shares of the information technology services provider's stock after purchasing an additional 86,616 shares during the period. Baird Financial Group Inc.'s holdings in ServiceNow were worth $49,681,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. XY Planning Network Inc. acquired a new position in shares of ServiceNow during the 2nd quarter worth about $214,000. Allworth Financial LP increased its position in shares of ServiceNow by 28.7% in the second quarter. Allworth Financial LP now owns 32,043 shares of the information technology services provider's stock valued at $3,181,000 after acquiring an additional 7,146 shares during the last quarter. Vulcan Value Partners LLC increased its position in shares of ServiceNow by 7.7% in the second quarter. Vulcan Value Partners LLC now owns 574,811 shares of the information technology services provider's stock valued at $57,067,000 after acquiring an additional 40,994 shares during the last quarter. Arizona State Retirement System increased its position in shares of ServiceNow by 2.1% in the second quarter. Arizona State Retirement System now owns 290,245 shares of the information technology services provider's stock valued at $28,816,000 after acquiring an additional 6,040 shares during the last quarter. Finally, Waverly Advisors LLC raised its holdings in ServiceNow by 0.7% during the second quarter. Waverly Advisors LLC now owns 110,680 shares of the information technology services provider's stock worth $10,988,000 after acquiring an additional 748 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Stronger competitive positioning: ServiceNow’s acquisition of Sweep is intended to sharpen its challenge to Salesforce by expanding workflow and customer-management capabilities. The deal could support broader platform adoption and strengthen ServiceNow’s AI strategy. ServiceNow Sharpens Its Salesforce Attack With Sweep Acquisition
• Positive Sentiment: Analyst price-target increase: BTIG raised its target for NOW to $170 from $150 and maintained a “Buy” rating, signaling confidence in the company’s growth prospects and potential upside. BTIG Raises ServiceNow Price Target
• Positive Sentiment: AI growth narrative remains intact: Recent analysis highlights strong subscription growth, expanding enterprise demand and ServiceNow’s ability to outperform the broader “SaaSpocalypse” fears surrounding AI disruption. The company’s Q2 revenue also rose about 24% year over year, according to the provided background. ServiceNow: A Gem Beating The SaaSpocalypse Narrative
• Positive Sentiment: Industry recognition and ecosystem support: ServiceNow was named a finalist for an AFP Pinnacle Award, while Deloitte was recognized as a leader in ServiceNow implementation services. These developments reinforce the platform’s enterprise credibility and partner ecosystem. Finalists Named for the AFP 2026 Pinnacle Awards
• Neutral Sentiment: Management commentary is in focus: ServiceNow’s Goldman Sachs Communacopia + Technology Conference appearance may provide investors with additional details on AI monetization, customer demand and the Sweep acquisition, but the supplied transcript listing contains no specific new guidance. ServiceNow Presents at Goldman Sachs Conference
• Negative Sentiment: Valuation and execution risks remain: Analysts note that stiff competition, possible margin pressure and a premium valuation could limit further gains after the stock’s recent rally. ServiceNow Jumps 25% in 3 Months
• Negative Sentiment: Insider selling may weigh on sentiment: The provided data shows seven insider sales and no purchases over the past six months, potentially raising caution about near-term valuation despite the company’s operational momentum.

ServiceNow Trading Down 2.4%

ServiceNow stock opened at $131.04 on Thursday. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week 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. The stock has a market capitalization of $135.50 billion, a P/E ratio of 81.90, a PEG ratio of 2.45 and a beta of 0.97. The stock has a 50-day simple moving average of $119.24 and a 200 day simple moving average of $108.56.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same quarter in the prior year, the company earned $0.81 earnings per share. The business's revenue for the quarter was up 24.0% compared to the same quarter last year. Analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages recently commented on NOW. Robert W. Baird increased their price target on ServiceNow from $118.00 to $125.00 and gave the company an "outperform" rating in a research report on Thursday, July 23rd. Bank of America boosted their price target on ServiceNow from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. Royal Bank Of Canada reiterated an "outperform" rating and set a $130.00 price objective on shares of ServiceNow in a research note on Thursday, July 23rd. Wells Fargo & Company reissued an "overweight" rating and issued a $175.00 price objective (up from $160.00) on shares of ServiceNow in a report on Wednesday, August 12th. Finally, TD Cowen reissued a "buy" rating and issued a $140.00 target price on shares of ServiceNow in a research note on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $144.73.

Insider Buying and Selling

In related news, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the sale, the director owned 43,990 shares in the company, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline Canney sold 7,847 shares of the firm's stock in a transaction 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 sale, the insider directly owned 30,042 shares of the company's stock, valued at $4,145,796. This represents a 20.71% decrease in their position. The SEC filing for this sale provides additional information. 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 valued at $1,937,904. 0.34% of the stock is owned by insiders.

ServiceNow Profile

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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