ServiceNow (NYSE:NOW) Shares Up 10.1% - Here's What Happened

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was up 10.1% on Thursday . The stock traded as high as $139.32 and last traded at $138.4960. Approximately 27,398,358 shares changed hands during mid-day trading, an increase of 17% from the average session volume of 23,434,109 shares. The stock had previously closed at $125.80.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Positive sector read-through: Salesforce’s stronger-than-expected quarterly performance, raised outlook and new AI initiatives boosted confidence in enterprise software demand and helped lift ServiceNow and other SaaS stocks. Why ServiceNow Rallied Today
• Positive Sentiment: AI is increasingly viewed as a growth opportunity: Reports highlighted ServiceNow’s agentic AI momentum, more than $1 billion in AI annual contract value and the potential for its AI Control Tower to create new revenue streams. Enterprise customers appear to be adding AI tools to existing workflows rather than replacing core platforms. Agentic AI Adoption Boosts NOW's Growth Prospects Against MSFT & CRM
• Positive Sentiment: Technical and analyst support improved: ServiceNow was reported to have cleared an early buy point as fears of a “SaaSpocalypse” faded. Recent analyst targets include values as high as $150, while the company’s latest reported quarter showed approximately $4 billion in revenue, up about 24% year over year. ServiceNow, IBD Stock Of The Day, Clears Early Buy Point
• Neutral Sentiment: New partnerships and integrations, including Pricefx’s AI-powered deal-optimization tools on the ServiceNow platform and Tech Mahindra’s expanded AI collaboration, reinforce the ecosystem but are longer-term catalysts rather than immediate earnings drivers. Pricefx Announces Integration with ServiceNow
• Negative Sentiment: Risks remain from elevated valuation, substantial recent volatility and mixed institutional positioning. Recent data also showed more insider sales than purchases, which could temper enthusiasm if the sector rally loses momentum. Momentum, Leveraged Trading Keep Software Stocks on Roller Coaster

Analyst Ratings Changes

Several research firms have recently weighed in on NOW. UBS Group set a $248.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. BMO Capital Markets increased their price objective on ServiceNow from $115.00 to $118.00 and gave the stock an "outperform" rating in a research note on Thursday, July 23rd. The Goldman Sachs Group restated a "buy" rating on shares of ServiceNow in a report on Monday, August 3rd. TD Cowen reaffirmed a "buy" rating and set a $140.00 target price on shares of ServiceNow in a research report on Monday, August 17th. Finally, Citic Securities lowered their target price on ServiceNow from $168.00 to $140.00 and set a "buy" rating for the company in a report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $144.24.

ServiceNow Stock Up 10.1%

The company has a market cap of $143.20 billion, a P/E ratio of 86.56, a P/E/G ratio of 2.23 and a beta of 0.94. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The business's 50 day moving average is $110.48 and its 200 day moving average is $106.06.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. During the same quarter last year, the firm earned $0.81 EPS. The business's revenue for the quarter was up 24.0% on a year-over-year basis. As a group, equities analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the transaction, the director owned 46,690 shares in the company, valued at $5,864,264. The trade was a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Brown Financial Advisors boosted its stake in ServiceNow by 18.0% in the second quarter. Brown Financial Advisors now owns 11,937 shares of the information technology services provider's stock valued at $1,185,000 after acquiring an additional 1,821 shares in the last quarter. Advus Financial Partners LLC boosted its position in shares of ServiceNow by 71.7% in the 2nd quarter. Advus Financial Partners LLC now owns 3,763 shares of the information technology services provider's stock worth $374,000 after purchasing an additional 1,572 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of ServiceNow in the 2nd quarter worth $28,275,000. California State Teachers Retirement System grew its stake in ServiceNow by 9,980.9% during the 2nd quarter. California State Teachers Retirement System now owns 154,496,061 shares of the information technology services provider's stock worth $15,338,369,000 after buying an additional 152,963,494 shares during the last quarter. Finally, Ameritas Advisory Services LLC increased its position in ServiceNow by 376.8% during the 2nd quarter. Ameritas Advisory Services LLC now owns 14,857 shares of the information technology services provider's stock valued at $1,475,000 after buying an additional 11,741 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

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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