Morgan Stanley Lowers ServiceNow (NYSE:NOW) Price Target to $180.00

Key Points

• Morgan Stanley lowered its price target on ServiceNow to $180 (from $210) but kept an "overweight" rating, a level that the firm says implies roughly 107% upside versus the stock's prior close.
• ServiceNow beat Q1 revenue expectations and raised its annual subscription outlook as AI demand lifted subscription growth (~22% YoY), yet the shares plunged about 15.8% to $86.81 amid investor worries over the Armis acquisition's margin headwind (≈75 bp FY, 125 bp Q2), Middle East deal delays, and analyst price-target cuts that boosted short interest.
• Analysts remain broadly positive overall — the consensus is a "Moderate Buy" with an average target near $155.86, though individual targets vary widely across firms.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective lowered by research analysts at Morgan Stanley from $210.00 to $180.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage currently has an "overweight" rating on the information technology services provider's stock. Morgan Stanley's price target points to a potential upside of 107.34% from the stock's previous close.

A number of other analysts also recently weighed in on the stock. Argus raised shares of ServiceNow to a "strong-buy" rating in a research report on Wednesday, February 4th. TD Cowen cut their price objective on shares of ServiceNow from $185.00 to $140.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Evercore restated an "outperform" rating and issued a $175.00 price target (down from $225.00) on shares of ServiceNow in a research note on Thursday, January 29th. BTIG Research reiterated a "buy" rating and set a $185.00 price objective on shares of ServiceNow in a research note on Monday. Finally, Oppenheimer set a $130.00 price target on ServiceNow and gave the company an "outperform" rating in a report on Wednesday, April 15th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $155.86.

ServiceNow Stock Down 15.8%

Shares of NYSE:NOW traded down $16.26 during trading on Thursday, hitting $86.81. The stock had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. ServiceNow has a 12 month low of $81.24 and a 12 month high of $211.48. The company has a market capitalization of $89.95 billion, a PE ratio of 52.17, a PEG ratio of 1.68 and a beta of 1.01. The firm's fifty day moving average is $105.55 and its 200 day moving average is $138.83. 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 released 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 company had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm's revenue was up 22.1% on a year-over-year basis. During the same period in the previous year, the company posted $4.04 earnings per share. Analysts anticipate that ServiceNow will post 2.49 EPS for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at $4,697,323.10. This trade represents a 3.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares of the company's stock, valued at $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 16,237 shares of company stock worth $1,697,162. Company insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently modified their holdings of NOW. Brighton Jones LLC grew its holdings in shares of ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock worth $2,919,000 after acquiring an additional 30 shares during the period. Sivia Capital Partners LLC lifted its holdings in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock valued at $861,000 after acquiring an additional 34 shares during the period. United Bank boosted its position in ServiceNow by 15.5% in the second quarter. United Bank now owns 1,519 shares of the information technology services provider's stock worth $1,562,000 after purchasing an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. grew its stake in shares of ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after purchasing an additional 42 shares during the period. Finally, Nebula Research & Development LLC grew its stake in shares of ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock valued at $931,000 after purchasing an additional 609 shares during the period. 87.18% of the stock is owned by institutional investors.

Key Headlines Impacting ServiceNow

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

About ServiceNow

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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