Vanguard Group Inc. Boosts Holdings in ServiceNow, Inc. $NOW

Key Points

• Vanguard Group boosted its stake in ServiceNow by 404.5% in Q4 to 101,963,384 shares (a 9.82% ownership worth $15.62 billion), and other institutions also ramped up positions, leaving institutional ownership at about 87.18%.
• ServiceNow beat Q1 revenue and EPS (revenue $3.77B, +22.1%; EPS $0.97) and is accelerating AI adoption while closing the $7.75B Armis acquisition and deepening Google Cloud ties, but analysts cut some price targets and flagged acquisition costs, margin/guidance issues, Middle East deal delays and rising short interest; the consensus rating is a Moderate Buy with an average target of $146.65 while the stock trades near $90.

Vanguard Group Inc. boosted its position in shares of ServiceNow, Inc. (NYSE:NOW - Free Report) by 404.5% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 101,963,384 shares of the information technology services provider's stock after acquiring an additional 81,752,460 shares during the period. Vanguard Group Inc. owned 9.82% of ServiceNow worth $15,619,771,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently bought and sold shares of NOW. Nordea Investment Management AB lifted its position in ServiceNow by 388.7% during the fourth quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider's stock valued at $720,325,000 after acquiring an additional 3,743,087 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of ServiceNow by 385.9% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock worth $398,202,000 after buying an additional 2,064,440 shares during the last quarter. Alphinity Investment Management Pty Ltd raised its holdings in shares of ServiceNow by 402.9% in the fourth quarter. Alphinity Investment Management Pty Ltd now owns 2,246,957 shares of the information technology services provider's stock worth $344,211,000 after buying an additional 1,800,113 shares during the last quarter. WELLCOME TRUST LTD THE as trustee of the WELLCOME TRUST raised its holdings in shares of ServiceNow by 400.0% in the fourth quarter. WELLCOME TRUST LTD THE as trustee of the WELLCOME TRUST now owns 2,250,000 shares of the information technology services provider's stock worth $344,678,000 after buying an additional 1,800,000 shares during the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of ServiceNow by 11,128.7% in the fourth quarter. SG Americas Securities LLC now owns 1,805,467 shares of the information technology services provider's stock worth $276,579,000 after buying an additional 1,789,388 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Analyst Ratings Changes

NOW has been the subject of a number of research analyst reports. Jefferies Financial Group reaffirmed a "buy" rating and issued a $135.00 price target (down from $175.00) on shares of ServiceNow in a report on Thursday. Macquarie Infrastructure decreased their price target on shares of ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a report on Thursday, January 29th. KeyCorp set a $85.00 price target on shares of ServiceNow and gave the stock an "underweight" rating in a report on Thursday. BTIG Research reaffirmed a "buy" rating and issued a $185.00 price target on shares of ServiceNow in a report on Monday, April 20th. Finally, TD Cowen reaffirmed a "buy" rating and issued a $140.00 price target on shares of ServiceNow in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $146.65.

ServiceNow Stock Up 6.3%

NYSE:NOW opened at $90.09 on Friday. The firm has a market capitalization of $93.34 billion, a P/E ratio of 53.69, a PEG ratio of 1.42 and a beta of 1.01. ServiceNow, Inc. has a 1-year low of $81.24 and a 1-year high of $211.48. The company's fifty day moving average price is $104.84 and its 200-day moving average price is $137.51. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 1.00.

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 for the quarter, hitting analysts' consensus estimates of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business's quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.81 earnings per share. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 2.49 EPS for the current year.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company fundamentals and AI traction remain supportive — ServiceNow beat revenue/earnings views for Q1 and highlighted accelerating AI product adoption (Now Assist / AI agents) that management says will drive long‑term growth. ServiceNow Reports First Quarter 2026 Financial Results
• Positive Sentiment: Strategic moves boost the product and security stack — ServiceNow closed the $7.75B Armis acquisition (extends security capabilities) and deepened Google Cloud AI partnerships, which support cross‑sell and AI workflow positioning. Armis acquisition Google Cloud partnership
• Neutral Sentiment: Mixed analyst reactions — Several firms reaffirmed buy/overweight ratings (some even raised PTs), but many cut targets after the quarter; consensus still leaves upside from current levels, reflecting disagreement over near‑term vs. long‑term outlook. Analyst coverage
• Negative Sentiment: Geopolitical deal delays hit near‑term growth — Management said Middle East conflict delayed several large deal closings (≈75 bps revenue headwind in Q1), and that pushed investors to downgrade near‑term growth expectations. Middle East deal delays
• Negative Sentiment: Margin and guidance concerns — Investors focused on acquisition costs (Armis) and a softer margin outlook/full‑year subscription guidance that many viewed as disappointing, triggering the sector‑wide selloff. Margin/guidance coverage
• Negative Sentiment: Short interest jumped — Short interest rose ~30% in April to ~38.95M shares (~3.8% of shares), increasing potential downside pressure and volatility if bearish sentiment persists.

Insider Transactions at ServiceNow

In other news, 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 sale, the insider owned 8,061 shares in the company, valued at $820,367.97. This represents a 31.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction 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 sale, the director owned 46,430 shares in the company, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. 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 90 days. 0.34% of the stock is currently owned by company insiders.

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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