William Blair Investment Management LLC Buys 1,774,770 Shares of ServiceNow, Inc. $NOW

Key Points

• William Blair Investment Management sharply increased its ServiceNow stake by 474.5% in the fourth quarter, buying 1.77 million additional shares and bringing its holdings to 2.15 million shares worth about $329.2 million.
• Several other large institutional investors also boosted their positions, and 87.18% of ServiceNow shares are held by institutions, signaling broad professional ownership of the stock.
• ServiceNow reported Q1 earnings of $0.97 per share and revenue of $3.77 billion, both in line with or slightly above expectations, while analysts currently maintain a Moderate Buy consensus with an average price target of $141.85.

William Blair Investment Management LLC lifted its stake in ServiceNow, Inc. (NYSE:NOW - Free Report) by 474.5% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,148,780 shares of the information technology services provider's stock after acquiring an additional 1,774,770 shares during the period. ServiceNow accounts for 0.9% of William Blair Investment Management LLC's portfolio, making the stock its 13th largest position. William Blair Investment Management LLC owned 0.21% of ServiceNow worth $329,172,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp grew its stake in ServiceNow by 1.4% during the 3rd quarter. State Street Corp now owns 9,454,699 shares of the information technology services provider's stock worth $8,700,970,000 after buying an additional 131,080 shares during the last quarter. Jennison Associates LLC grew its stake in ServiceNow by 280.1% during the 4th quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock worth $1,291,758,000 after buying an additional 6,213,762 shares during the last quarter. Nordea Investment Management AB grew its stake in ServiceNow by 388.7% during the 4th quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider's stock worth $720,325,000 after buying an additional 3,743,087 shares during the last quarter. Finally, Pictet Asset Management Holding SA grew its stake in ServiceNow by 613.4% during the 4th quarter. Pictet Asset Management Holding SA now owns 3,840,262 shares of the information technology services provider's stock worth $588,326,000 after buying an additional 3,301,962 shares during the last quarter. 87.18% of the stock is owned by institutional investors.

ServiceNow Stock Up 2.4%

ServiceNow stock opened at $102.13 on Friday. 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 business's 50-day simple moving average is $98.74 and its two-hundred day simple moving average is $126.13. The company has a market cap of $105.29 billion, a PE ratio of 60.86, a PEG ratio of 1.85 and a beta of 0.82. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.81 EPS. Equities analysts anticipate that ServiceNow, Inc. will post 2.35 EPS for the current year.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Recent coverage argues that ServiceNow’s broader AI roadmap and new workflow products are helping drive investor optimism, with one report saying fresh AI initiatives and analyst support helped lift the shares. ServiceNow Rally Builds Around Broader AI Strategy
• Positive Sentiment: Bank of America reportedly reinstated coverage with a Buy rating and a $130 price target, reinforcing the view that ServiceNow could benefit as an AI workflow recovery story. Why ServiceNow (NOW) Is Still an AI Workflow Recovery Bet
• Positive Sentiment: Another article highlights ServiceNow as a “mispriced” AI beneficiary, pointing to strong subscription growth, healthy free-cash-flow margins, and expanding enterprise adoption of its agentic AI tools. ServiceNow: The Big Mispriced Tollbooth For Agentic AI
• Positive Sentiment: Market commentary notes that ServiceNow has outperformed since its last earnings report, with investors still looking for upside from earnings estimate trends and AI-related growth expectations. Why Is ServiceNow (NOW) Up 17.6% Since Last Earnings Report?
• Positive Sentiment: Additional valuation-focused coverage grouped ServiceNow with other software names that may be trading at compelling levels despite continued growth forecasts, supporting the bullish case for the stock. Intuit Drops 63%: Are Software Stocks Deep Value or a Trap?
• Neutral Sentiment: Citic Securities lowered its price target on ServiceNow to $140 from $168 but kept a Buy rating, which tempers but does not reverse the constructive outlook. Citic Securities adjusts ServiceNow price target

Analysts Set New Price Targets

NOW has been the topic of several research analyst reports. KeyCorp set a $85.00 target price on ServiceNow and gave the stock an "underweight" rating in a research note on Thursday, April 23rd. Capital One Financial boosted their target price on ServiceNow from $105.00 to $120.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 5th. Piper Sandler dropped their target price on ServiceNow from $200.00 to $140.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. HSBC dropped their target price on ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a research note on Thursday, April 16th. Finally, Canaccord Genuity Group dropped their target price on ServiceNow from $200.00 to $145.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Two research 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 given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $141.85.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the business's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the sale, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. The trade was a 35.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,767 shares of company stock worth $2,906,098 in the last 90 days. 0.34% of the stock is 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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