Teacher Retirement System of Texas Boosts Stock Position in ServiceNow, Inc. $NOW

Key Points

• Teacher Retirement System of Texas increased its stake in ServiceNow by 583.1% in Q4, adding 272,323 shares to hold 319,025 shares worth about $48.87 million.
• ServiceNow beat/meet Q1 expectations with $3.77B revenue (up 22.1%) and $0.97 EPS, raised its annual subscription-revenue outlook on strong AI demand, but warned the Armis acquisition and Middle East deal delays will weigh on near-term margins and drove stock volatility.
• Wall Street has trimmed several price targets (recent cuts into the $140–$188 range) but the consensus remains a Moderate Buy with an average target of $170.51; institutional investors own ~87.18% of the shares while insiders have slightly reduced holdings.

Teacher Retirement System of Texas grew its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 583.1% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 319,025 shares of the information technology services provider's stock after purchasing an additional 272,323 shares during the period. Teacher Retirement System of Texas' holdings in ServiceNow were worth $48,871,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also made changes to their positions in the stock. Confluence Wealth Services Inc. grew its position in shares of ServiceNow by 347.4% in the fourth quarter. Confluence Wealth Services Inc. now owns 2,975 shares of the information technology services provider's stock valued at $456,000 after purchasing an additional 2,310 shares in the last quarter. EPG Wealth Management LLC grew its position in shares of ServiceNow by 412.5% in the fourth quarter. EPG Wealth Management LLC now owns 9,650 shares of the information technology services provider's stock valued at $1,478,000 after purchasing an additional 7,767 shares in the last quarter. HB Wealth Management LLC grew its position in shares of ServiceNow by 463.2% in the fourth quarter. HB Wealth Management LLC now owns 58,870 shares of the information technology services provider's stock valued at $9,018,000 after purchasing an additional 48,418 shares in the last quarter. Davidson Capital Management Inc. grew its position in shares of ServiceNow by 413.7% in the fourth quarter. Davidson Capital Management Inc. now owns 18,104 shares of the information technology services provider's stock valued at $2,773,000 after purchasing an additional 14,580 shares in the last quarter. Finally, United Asset Strategies Inc. grew its position in shares of ServiceNow by 409.1% in the fourth quarter. United Asset Strategies Inc. now owns 117,572 shares of the information technology services provider's stock valued at $18,011,000 after purchasing an additional 94,478 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Weiss Ratings lowered ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday. The Goldman Sachs Group lowered their price objective on ServiceNow from $216.00 to $188.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. TD Cowen lowered their price objective on ServiceNow from $185.00 to $140.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. Piper Sandler lowered their price objective on ServiceNow from $200.00 to $140.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $200.00 price objective on shares of ServiceNow in a research report on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and an average target price of $170.51.

ServiceNow Stock Up 3.0%

NYSE:NOW opened at $103.16 on Thursday. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock's fifty day moving average is $105.55 and its two-hundred day moving average is $138.83. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $211.48. The stock has a market capitalization of $106.89 billion, a price-to-earnings ratio of 61.85, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts' consensus estimates of $0.97. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The company had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. During the same period in the prior year, the firm earned $4.04 earnings per share. The firm's revenue was up 22.1% compared to the same quarter last year. Research analysts anticipate that ServiceNow, Inc. will post 2.49 EPS for the current year.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction on Thursday, February 12th. The stock was 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 $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 Securities & Exchange Commission, which is available at the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider owned 26,314 shares in the company, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,237 shares of company stock worth $1,697,162 over the last ninety days. Corporate insiders own 0.34% of the company's stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 results showed solid revenue growth and ServiceNow raised its annual subscription-revenue outlook, citing strong enterprise adoption of its AI products — a driver for longer-term revenue expansion. ServiceNow boosts annual subscription revenue outlook on strong AI software demand
• Positive Sentiment: Strategic moves broaden product reach: ServiceNow closed the Armis acquisition (adds OT/IoT and agentless asset visibility) and deepened ties with Google Cloud while landing customer wins (e.g., TridentCare) — these support cross-sell and AI/security revenue opportunities. ServiceNow inches up after it closes Armis acquisition ServiceNow and Google Cloud unite AI agents for autonomous enterprise operations
• Neutral Sentiment: Management reiterated that AI boosts productivity (CEO expects to hold headcount flat), which could improve operating leverage over time but leaves short-term margin and execution questions open. AI will boost productivity so ServiceNow won't have to backfill open jobs, CEO says
• Negative Sentiment: Near-term margin pressure: ServiceNow warned the Armis deal will dent operating margins (~75 bps full year; ~125 bps in Q2), which was a key reason the stock sold off after hours. Margin guidance concerns are a primary driver of recent volatility. ServiceNow Posts Revenue Growth, But Says Armis Deal Will Weigh on Margins
• Negative Sentiment: Middle East conflict has delayed several large deals, creating a reported ~75 bps revenue headwind in Q1 and contributing to cautious guidance and investor disappointment. Management expects those deals to close later in the year, so impact is timing-related. ServiceNow flags Middle East deal delays, shares crash
• Negative Sentiment: Sector and sentiment pressure: broader AI-disruption fears and elevated short interest in ServiceNow amplified the reaction to mixed guidance/ margin news, prompting sharp intraday moves in NOW and other software names. US software stocks slide as IBM, ServiceNow results reignite AI disruption fears

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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