Mizuho Lowers ServiceNow (NYSE:NOW) Price Target to $140.00

Key Points

• Mizuho cut its price target on ServiceNow from $150 to $140 but kept an "outperform" rating, with the new target implying roughly a 61.47% upside from the stock's prior close.
• Although ServiceNow beat Q1 revenue estimates and raised its subscription outlook on stronger AI demand, the stock plunged to $86.71 after earnings as several analysts trimmed price targets and management warned the Armis acquisition and delayed Middle East deals would pressure near-term margins and revenue timing.
• Despite the selloff, the consensus remains a "Moderate Buy" with an average analyst price target of $155.86, institutional investors own about 87% of shares, and insiders have recently sold modest stakes.

ServiceNow (NYSE:NOW - Get Free Report) had its price target decreased by stock analysts at Mizuho from $150.00 to $140.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage presently has an "outperform" rating on the information technology services provider's stock. Mizuho's target price indicates a potential upside of 61.47% from the stock's previous close.

NOW has been the subject of several other reports. Truist Financial cut their target price on shares of ServiceNow from $125.00 to $120.00 and set a "buy" rating for the company in a research report on Thursday. TD Cowen dropped their price target on ServiceNow from $185.00 to $140.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Stifel Nicolaus cut their price objective on ServiceNow from $135.00 to $120.00 and set a "buy" rating for the company in a report on Thursday. BNP Paribas Exane upgraded ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price objective on the stock in a research report on Monday, March 16th. Finally, Oppenheimer set a $130.00 price objective on ServiceNow and gave the company an "outperform" rating in a report on Wednesday, April 15th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $155.86.

ServiceNow Price Performance

NOW traded down $16.36 on Thursday, reaching $86.71. The company had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. ServiceNow has a 52-week low of $81.24 and a 52-week high of $211.48. The company has a market cap of $89.84 billion, a price-to-earnings ratio of 52.17, a P/E/G ratio of 1.68 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The business has a 50 day simple moving average of $105.55 and a 200 day simple moving average of $138.83.

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. The business had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The business's quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.04 EPS. As a group, sell-side analysts anticipate that ServiceNow will post 2.49 EPS for the current year.

Insider Transactions at ServiceNow

In other news, insider Kevin Thomas Mcbride sold 1,400 shares of the business's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares of the company's stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the sale, the director owned 46,430 shares of the company's stock, valued at $4,697,323.10. This represents a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 16,237 shares of company stock worth $1,697,162. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in 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 during the last quarter. State Street Corp boosted its holdings in shares of ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of ServiceNow by 371.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC grew its stake in shares of ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after purchasing an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley increased its holdings in ServiceNow by 335.6% during the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares during the period. 87.18% of the stock is currently owned by institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

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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