Sumitomo Mitsui Trust Group Inc. Acquires 2,064,440 Shares of ServiceNow, Inc. $NOW

Key Points

• Sumitomo Mitsui Trust Group boosted its stake in ServiceNow by 385.9% in Q4, buying 2,064,440 shares to hold 2,599,397 shares (about 0.25% of the company) valued at roughly $398.2 million.
• ServiceNow is rolling out an AI-native platform and partnered with DXC to deploy agentic AI at scale, but the stock has faced heavy selling, multiple analyst downgrades (UBS cut its target to $100) and technical pressure, driving shares toward 52-week lows (recent open ~$83).
• Financially, ServiceNow beat Q4 expectations with $0.92 EPS vs. $0.89 expected and $3.57B revenue (up 20.7% YoY), while analysts remain mixed on the outlook despite continued top-line growth.

Sumitomo Mitsui Trust Group Inc. boosted its holdings in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 385.9% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 2,599,397 shares of the information technology services provider's stock after purchasing an additional 2,064,440 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.25% of ServiceNow worth $398,202,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. IAG Wealth Partners LLC lifted its stake in 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 increased its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 128 shares in the last quarter. Lodestone Wealth Management LLC acquired a new position in shares of ServiceNow during the fourth quarter worth $26,000. Albion Financial Group UT increased its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider's stock worth $26,000 after buying an additional 136 shares in the last quarter. Finally, Bogart Wealth LLC increased its holdings in shares of ServiceNow by 93.8% during the third quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider's stock worth $29,000 after buying an additional 15 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Stock Performance

NYSE NOW opened at $83.00 on Friday. The company has a market capitalization of $86.00 billion, a price-to-earnings ratio of 49.76, a PEG ratio of 1.39 and a beta of 1.01. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $211.48. The stock has a fifty day simple moving average of $107.27 and a 200 day simple moving average of $143.79. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating analysts' consensus estimates of $0.89 by $0.03. The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.ServiceNow's quarterly revenue was up 20.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.73 earnings per share. Sell-side analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current year.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow rolled out an AI-native platform across its product portfolio and unveiled features like Context Engine and Build Agent skills — a strategic move to embed agentic AI and defend its workflow/control-plane positioning. ServiceNow Puts AI At The Center With DXC Agentic Partnership
• Positive Sentiment: ServiceNow deepened enterprise references via a partnership with DXC to deploy agentic AI at scale — this helps show early customer traction for the new AI-native stack. ServiceNow Puts AI At The Center With DXC Agentic Partnership
• Neutral Sentiment: Some analysts and outlets still view NOW as a long-term AI/automation play or a buy-the-dip candidate; Stifel and other commentators highlight backlog rebuilding and double-digit revenue growth as supportive fundamentals. Stifel Bullish on ServiceNow
• Negative Sentiment: UBS downgraded NOW to Neutral and cut its price target sharply (from $170 to $100), citing emerging budget pressures in non‑AI software spending and rising use of lighter workflow tools — the note is the main near-term sell catalyst. ServiceNow faces more cautious outlook as UBS cites AI-driven budget pressures
• Negative Sentiment: Broader software-sector panic after new agentic AI model releases (Anthropic/OpenAI) triggered heavy selling across SaaS names, and ServiceNow has been singled out as vulnerable to disruption — amplifying the selloff. Worries Over AI Competition Pummel Software Stocks
• Negative Sentiment: Multiple analyst downgrades and target cuts (UBS, Erste, BTIG and others) plus high-volume selling have pushed NOW to 52-week lows and steep YTD losses, creating technical downside pressure even as some investors call the shares oversold. ServiceNow Stock Craters 19%

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares in the company, valued at $4,697,323.10. This represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Paul Fipps sold 3,696 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares of the company's stock, valued at $820,367.97. The trade was a 31.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 16,237 shares of company stock worth $1,697,162 over the last three months. Company insiders own 0.34% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. BTIG Research lowered their price target on shares of ServiceNow from $200.00 to $185.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Royal Bank Of Canada lowered their price target on shares of ServiceNow from $185.00 to $150.00 and set an "outperform" rating for the company in a report on Monday, February 9th. Robert W. Baird set a $175.00 price target on shares of ServiceNow in a report on Thursday, January 29th. Arete Research set a $200.00 price target on shares of ServiceNow in a report on Tuesday, January 6th. Finally, KeyCorp lowered their price target on shares of ServiceNow from $155.00 to $115.00 and set an "underweight" rating for the company in a report on Thursday, January 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $187.06.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.