Needham & Company LLC Cuts ServiceNow (NYSE:NOW) Price Target to $115.00

Key Points

• Needham & Company cut its price target on ServiceNow from $155 to $115 but maintained a "buy" rating, with the new target implying roughly an 11.48% upside from the prior close.
• The analyst consensus remains broadly positive — ServiceNow has a "Moderate Buy" average rating and an average target of $170.51 — even as several firms (including Goldman and Macquarie) have trimmed their targets recently.
• Q1 performance showed revenue up 22.1% and EPS meeting estimates, and management raised its subscription-revenue outlook on strong AI demand, but the Armis acquisition and delayed Middle East deals are expected to weigh on near-term margins and have driven recent stock volatility.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective dropped by analysts at Needham & Company LLC from $155.00 to $115.00 in a report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the information technology services provider's stock. Needham & Company LLC's target price would indicate a potential upside of 11.48% from the company's previous close.

Other equities analysts have also issued research reports about the company. Jefferies Financial Group reissued a "buy" rating on shares of ServiceNow in a report on Thursday. Benchmark assumed coverage on ServiceNow in a report on Wednesday, April 1st. They issued a "buy" rating and a $125.00 target price on the stock. Truist Financial set a $125.00 target price on ServiceNow in a report on Wednesday, April 15th. The Goldman Sachs Group dropped their target price on ServiceNow from $216.00 to $188.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Finally, Macquarie Infrastructure dropped their target price on ServiceNow from $172.00 to $140.00 and set a "neutral" rating on the stock in a report on Thursday, January 29th. Three investment 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $170.51.

ServiceNow Stock Up 3.0%

ServiceNow stock opened at $103.16 on Thursday. ServiceNow has a twelve month low of $81.24 and a twelve month high of $211.48. The stock's fifty day simple moving average is $105.55 and its 200-day simple moving average is $138.83. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $106.89 billion, a P/E ratio of 61.85, a P/E/G ratio of 1.68 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate 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 return on equity of 18.54% and a net margin of 13.16%.ServiceNow's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $4.04 earnings per share. As a group, equities analysts expect that ServiceNow will post 2.49 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Paul Fipps sold 9,641 shares of the company's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the completion of the transaction, the insider owned 11,757 shares in the company, valued at $1,245,419.01. This represents a 45.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company'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 completion of the transaction, 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 position. The disclosure for this sale is available in the SEC filing. Insiders sold 16,237 shares of company stock worth $1,697,162 over the last 90 days. Corporate insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

Hedge funds have recently made changes to their positions in the business. IAG Wealth Partners LLC boosted its stake in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares during the period. Noble Wealth Management PBC boosted its stake in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 128 shares during the period. Millstone Evans Group LLC boosted its stake in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after buying an additional 132 shares during the period. CBIZ Investment Advisory Services LLC boosted its stake in shares of ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after buying an additional 135 shares during the period. Finally, Blueline Advisors LLC acquired a new stake in shares of ServiceNow during the fourth quarter worth about $25,000. Institutional investors and hedge funds own 87.18% of the company's stock.

Trending Headlines about ServiceNow

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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