California State Teachers Retirement System Has $160.23 Million Holdings in ServiceNow, Inc. $NOW

Key Points

• CalSTRS reduced its ServiceNow position by 2.8% in the first quarter, selling 43,369 shares and retaining 1.53 million shares valued at approximately $160.23 million. Institutional investors own 87.18% of the company.
• ServiceNow reported quarterly revenue of $3.99 billion, up 24% year over year, and EPS of $0.90, exceeding estimates of $0.86. AI offerings generated more than $1 billion in annual contract value, supporting the company’s growth outlook.
• Analysts maintain a generally positive view, with the stock rated “Moderate Buy” and an average price target of $143.39 versus a recent price of $110.55. However, its elevated P/E ratio and restructuring-related job cuts highlight valuation and execution risks.

California State Teachers Retirement System trimmed its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 2.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,532,567 shares of the information technology services provider's stock after selling 43,369 shares during the period. California State Teachers Retirement System owned 0.15% of ServiceNow worth $160,230,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Wealth Watch Advisors INC acquired a new stake in ServiceNow in the 3rd quarter valued at about $29,000. Kelleher Financial Advisors acquired a new position in ServiceNow during the third quarter worth approximately $50,000. Pin Oak Investment Advisors Inc. increased its position in ServiceNow by 20.7% during the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider's stock worth $123,000 after buying an additional 23 shares during the last quarter. Jupiter Wealth Management LLC bought a new stake in ServiceNow in the second quarter valued at approximately $154,000. Finally, CBIZ Investment Advisory Services LLC raised its stake 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 valued at $25,000 after buying an additional 135 shares during the period. 87.18% of the stock is owned by institutional investors.

ServiceNow Price Performance

Shares of NYSE NOW opened at $110.55 on Wednesday. The firm has a market cap of $114.30 billion, a P/E ratio of 69.09, a price-to-earnings-growth ratio of 1.86 and a beta of 0.96. The business's 50 day moving average is $104.99 and its 200-day moving average is $106.84. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $201.15.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings results 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 business had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the previous year, the company posted $0.81 EPS. The firm's quarterly revenue was up 24.0% on a year-over-year basis. Equities research analysts predict that ServiceNow, Inc. will post 2.24 earnings per share for the current year.

Insider Activity

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the sale, the insider owned 12,072 shares in the company, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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. Also, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director owned 30,090 shares of the company's stock, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 19,144 shares of company stock valued at $1,730,097. 0.34% of the stock is owned by company insiders.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s second-quarter performance remains a key bullish argument: revenue grew 24% year over year to $3.99 billion, earnings exceeded estimates, large-deal activity accelerated, and management raised its full-year outlook. The company also reported more than $1 billion in annual contract value from its AI offerings. Is the Market Mispricing ServiceNow's AI Future?
• Positive Sentiment: Analysts and investors are increasingly viewing ServiceNow as an AI beneficiary rather than an AI-disruption victim. Its workflow automation platform, enterprise AI products, and potential shift toward consumption-based pricing could create additional revenue as customers deploy more AI-driven work. ServiceNow Is Building an AI Business for Enterprises
• Positive Sentiment: The company’s expanding cybersecurity business is being highlighted as another potential growth engine beyond AI, while a new integration from IP Fabric could strengthen ServiceNow’s configuration-management database offering and customer value proposition. ServiceNow’s Q2 Earnings Showed It’s More Than an AI Stock
• Neutral Sentiment: ServiceNow remains a popular “value” and turnaround discussion among analysts after falling substantially this year. The stock’s valuation is more attractive than before, but its elevated earnings multiple means investors still require sustained growth and successful AI monetization. ServiceNow's Revenue Growth Is Accelerating
• Negative Sentiment: ServiceNow cut hundreds of jobs as part of a global restructuring and efficiency push. While the reductions may improve operating discipline and align with CEO Bill McDermott’s focus on streamlining workflows, they also signal cost pressures and broader uncertainty across the software sector. ServiceNow Cuts Jobs Amid Global Restructuring and AI Focus

Wall Street Analyst Weigh In

Several brokerages have recently commented on NOW. Evercore reiterated an "outperform" rating and set a $160.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. Raymond James Financial dropped their price target on ServiceNow from $160.00 to $130.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Cantor Fitzgerald lifted their price objective on shares of ServiceNow from $122.00 to $141.00 and gave the stock an "overweight" rating in a research report on Monday, July 20th. UBS Group set a $248.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Finally, Mizuho dropped their price objective on shares of ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and an average target price of $143.39.

ServiceNow Company 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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