Jennison Associates LLC Purchases 6,213,762 Shares of ServiceNow, Inc. $NOW

Key Points

• Jennison Associates LLC increased its stake in ServiceNow by 280.1%, buying 6,213,762 shares to own 8,432,389 shares (0.81% of the company) worth about $1.29 billion at quarter-end, and institutional ownership stands around 87.18%.
• Q1 results showed revenue of $3.77 billion (beating $3.75B) and EPS of $0.97 in line with estimates, with subscription revenue up ~22% YoY and management raising the FY2026 subscription outlook, underscoring recurring revenue and AI monetization potential.
• Despite the fundamentals, shares have plunged YTD and some analysts cut targets (consensus rating "Moderate Buy" with a $146.65 target), while recent insider selling (25,164 shares sold in the last 90 days) contributes to near-term negative sentiment.

Jennison Associates LLC grew its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 280.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,432,389 shares of the information technology services provider's stock after acquiring an additional 6,213,762 shares during the period. Jennison Associates LLC owned 0.81% of ServiceNow worth $1,291,758,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the stock. Trifecta Capital Advisors LLC grew its stake in ServiceNow by 358.6% in the 4th quarter. Trifecta Capital Advisors LLC now owns 42,090 shares of the information technology services provider's stock worth $6,448,000 after acquiring an additional 32,912 shares in the last quarter. State of New Jersey Common Pension Fund D grew its stake in ServiceNow by 387.0% in the 4th quarter. State of New Jersey Common Pension Fund D now owns 354,005 shares of the information technology services provider's stock worth $54,230,000 after acquiring an additional 281,311 shares in the last quarter. Prentice Wealth Management LLC grew its stake in ServiceNow by 432.9% in the 4th quarter. Prentice Wealth Management LLC now owns 1,897 shares of the information technology services provider's stock worth $291,000 after acquiring an additional 1,541 shares in the last quarter. US Bancorp DE grew its stake in ServiceNow by 395.5% in the 4th quarter. US Bancorp DE now owns 1,036,435 shares of the information technology services provider's stock worth $158,772,000 after acquiring an additional 827,256 shares in the last quarter. Finally, Canandaigua National Bank & Trust Co. grew its stake in ServiceNow by 511.7% in the 4th quarter. Canandaigua National Bank & Trust Co. now owns 7,610 shares of the information technology services provider's stock worth $1,166,000 after acquiring an additional 6,366 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. BNP Paribas Exane upgraded shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 target price on the stock in a research note on Monday, March 16th. Argus dropped their target price on shares of ServiceNow from $180.00 to $134.00 and set a "buy" rating on the stock in a research note on Friday, April 24th. Needham & Company LLC dropped their target price on shares of ServiceNow from $155.00 to $115.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. BMO Capital Markets dropped their target price on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Finally, BTIG Research restated a "buy" rating and issued a $185.00 target price on shares of ServiceNow in a research note on Monday, April 20th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, ServiceNow has an average rating of "Moderate Buy" and a consensus target price of $146.65.

Insider Buying and Selling at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the transaction, the insider owned 29,531 shares in the company, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,164 shares of company stock valued at $2,497,021 in the last ninety days. Company insiders own 0.34% of the company's stock.

ServiceNow Price Performance

NYSE NOW opened at $86.56 on Thursday. 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's 50 day moving average price is $103.83 and its 200-day moving average price is $135.59. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $211.48. The company has a market cap of $89.25 billion, a PE ratio of 51.37, a P/E/G ratio of 1.59 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (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 firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period last year, the firm earned $0.81 earnings per share. The company's quarterly revenue was up 22.1% on a year-over-year basis. Sell-side analysts forecast that ServiceNow, Inc. will post 2.37 EPS for the current fiscal year.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 results showed healthy subscription momentum (≈22% YoY subscription growth) and management raised FY2026 subscription outlook, reinforcing recurring revenue strength and AI monetization potential. ServiceNow Announces Financial Results for Q1 2026
• Positive Sentiment: Real‑world agentic AI deployments (example: TridentCare) and a deeper AI collaboration with Google Cloud signal enterprise adoption across telecom, retail and ITSM — supports upsells, larger ACVs and long‑run revenue expansion. ServiceNow AI Partnerships Test Workflow Stickiness As Shares Slide
• Positive Sentiment: Several analysts and commentators are pitching NOW as a buy‑the‑dip opportunity (double‑bottom thesis), citing durable subscription economics, strong free cash flow and runway for buybacks/M&A. ServiceNow: Buy This Double Bottom
• Neutral Sentiment: ISG reports and partner recognitions (Atos, Genpact, Zaelab) show a maturing ecosystem standardizing ServiceNow as a governed AI/workflow platform — positive for long‑term adoption but incremental to near‑term revenue. Atos recognized as a Leader in ISG’s Provider Lens® 2026
• Neutral Sentiment: New partner integrations (healthcare partnerships, ERP integrations) expand addressable market and regulatory fit but require execution to convert into material revenue. Simplify Alpha Partners With ServiceNow
• Negative Sentiment: Market reaction has been harsh: shares plunged YTD and fell further after earnings despite the beat — valuation compression and rotation into pure‑play AI winners are weighing on the stock. Salesforce vs. ServiceNow: Which AI Stock Is the Better Buy?
• Negative Sentiment: Insider selling disclosed: Jacqueline P. Canney sold ~8,927 shares at ≈$89.60, which can add short‑term negative sentiment. Insider SEC Filing

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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