ServiceNow, Inc. $NOW Stake Raised by Soltis Investment Advisors LLC

Key Points

• Soltis Investment Advisors increased its ServiceNow holdings by 29.7% in the third quarter, bringing its position to 58,015 shares valued at approximately $7.8 million. Institutional investors collectively own 87.18% of the stock.
• ServiceNow reported third-quarter revenue of $4.11 billion, up 20.5% year over year, but adjusted EPS of $1.00 slightly missed estimates. Slower expected backlog growth and concerns about converting AI contracts into sustained earnings have pressured investor sentiment.
• The stock opened at $109.83, well below its 50-day moving average of $139.20, while analysts maintain a consensus “Moderate Buy” rating and an average price target of $154.50. AI partnerships, including an expanded agreement with OpenAI, remain a key potential growth driver.

Soltis Investment Advisors LLC raised its holdings in ServiceNow, Inc. (NYSE:NOW - Free Report) by 29.7% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 58,015 shares of the information technology services provider's stock after buying an additional 13,277 shares during the quarter. Soltis Investment Advisors LLC's holdings in ServiceNow were worth $7,775,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Founders Financial Securities LLC raised its holdings in ServiceNow by 43.4% in the 3rd quarter. Founders Financial Securities LLC now owns 7,711 shares of the information technology services provider's stock worth $1,033,000 after purchasing an additional 2,334 shares in the last quarter. United Asset Strategies Inc. lifted its position in shares of ServiceNow by 2.2% in the 3rd quarter. United Asset Strategies Inc. now owns 147,940 shares of the information technology services provider's stock worth $19,825,000 after purchasing an additional 3,254 shares during the period. Choreo LLC lifted its position in shares of ServiceNow by 5.3% in the 3rd quarter. Choreo LLC now owns 39,350 shares of the information technology services provider's stock worth $5,273,000 after purchasing an additional 1,969 shares during the period. China Universal Asset Management Co. Ltd. bought a new stake in shares of ServiceNow during the 3rd quarter valued at about $1,902,000. Finally, Childress Capital Advisors LLC boosted its stake in shares of ServiceNow by 4.3% during the 3rd quarter. Childress Capital Advisors LLC now owns 4,014 shares of the information technology services provider's stock valued at $538,000 after purchasing an additional 164 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Stock Down 26.8%

NYSE:NOW opened at $109.83 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The firm's 50-day moving average price is $139.20 and its 200-day moving average price is $115.64. The company has a market capitalization of $113.56 billion, a PE ratio of 79.01, a P/E/G ratio of 2.75 and a beta of 0.99. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $192.97.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.02 by ($0.02). ServiceNow had a net margin of 9.36% and a return on equity of 15.38%. The business had revenue of $4.11 billion for the quarter, compared to analysts' expectations of $4.09 billion. During the same period last year, the business earned $4.82 earnings per share. The company's revenue was up 20.5% on a year-over-year basis. On average, equities analysts predict that ServiceNow, Inc. will post 2.23 EPS for the current fiscal year.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow reported third-quarter revenue of $4.11 billion, up 20.5% year over year, driven by subscription revenue of $3.99 billion and continued demand for AI products. Management also raised its 2026 AI contract target to $1.7 billion. NOW Q3 Earnings Lag Estimates, Revenues Rise on Subscription Growth
• Positive Sentiment: The company expanded its partnership with OpenAI to bring AI agents, governed workflows, cybersecurity capabilities and agentic development tools to enterprise customers. It also announced a five-year agreement for HPE’s Cloud & AI support services. ServiceNow and OpenAI accelerate enterprise AI
• Positive Sentiment: Several firms continue to see long-term upside. JPMorgan raised its target to $160, while Piper Sandler, Wells Fargo, Oppenheimer and others retained positive ratings despite reducing some targets. ServiceNow stock is on track for its largest drop on record
• Neutral Sentiment: The expanded AI opportunity may support future growth, but investors are weighing whether ServiceNow can convert large AI contracts into sustained revenue and earnings while maintaining cash-flow flexibility.
• Negative Sentiment: Adjusted EPS was $1.00, below the $1.02 consensus and down from the prior-year comparison cited in company coverage. Acquisition-related costs contributed to the miss. ServiceNow Lags Q3 Earnings Estimates
• Negative Sentiment: The main concern was forward demand: fourth-quarter guidance implies contracted backlog growth of about 18.5%, slower than expected and below the projected 21.5% revenue growth rate. Investors viewed the bookings outlook as an early warning for future sales.
• Negative Sentiment: Renewed fears that AI could pressure traditional software vendors were amplified by competition from startups such as Serval, which raised $150 million at a $3 billion valuation to challenge ServiceNow.
• Negative Sentiment: Analysts also flagged ServiceNow’s roughly $7.52 billion debt load and rising interest costs as risks to financial flexibility, adding to the earnings and valuation concerns. ServiceNow's Debt and Interest Costs Jump

Insiders Place Their Bets

In other ServiceNow news, insider Jacqueline Canney sold 7,847 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the transaction, the insider owned 30,042 shares of the company's stock, valued at approximately $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the transaction, the insider directly owned 18,305 shares of the company's stock, valued at $2,706,760.35. This represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NOW. Barclays set a $152.00 price target on shares of ServiceNow and gave the company an "overweight" rating in a research report on Thursday. KeyCorp restated an "underweight" rating and issued a $110.00 price objective (up from $85.00) on shares of ServiceNow in a report on Thursday. Jefferies Financial Group set a $145.00 price objective on ServiceNow in a research report on Thursday. Weiss Ratings upgraded ServiceNow from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Finally, Zacks Research lowered ServiceNow from a "hold" rating to a "strong sell" rating in a research report on Monday, October 19th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $154.50.

ServiceNow Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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