ServiceNow (NYSE:NOW) Shares Up 2.9% - What's Next?

Key Points

• ServiceNow shares rose 2.9% to $109.09 in mid-day trading, while volume was 36% below its average.
• Latest quarterly revenue reached $4.11 billion, up 20.5% year over year, but adjusted earnings of $1.00 per share narrowly missed estimates of $1.02.
• Analysts’ consensus remains “Moderate Buy,” with a $154.50 average price target, but investors face concerns about weaker backlog guidance, AI-related spending and potential pressure on per-seat pricing.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) rose 2.9% during mid-day trading on Tuesday. The company traded as high as $109.26 and last traded at $109.0910. Approximately 13,935,081 shares traded hands during trading, a decline of 36% from the average session volume of 21,630,889 shares. The stock had previously closed at $106.01.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Argus reaffirmed its Buy rating and set a $170 price target, citing potential upside from current levels. Other bullish commentary points to ServiceNow’s growing customer base and demand for AI-powered workflow automation. Argus price target and outlook Why ServiceNow Stock Is a Buy Now
• Positive Sentiment: ServiceNow is expanding its enterprise AI push through its Control Tower Alliance and partnerships with major technology companies. The initiatives could strengthen its role in helping businesses deploy and govern AI, though investors will look for evidence they translate into growth. ServiceNow launches Control Tower Alliance
• Neutral Sentiment: ServiceNow’s Q3 revenue was about $4.1 billion, but the company is increasing AI investment and shifting toward outcome-based pricing. Those moves may support adoption over time, but their near-term effects on costs, margins, and revenue visibility remain key questions. How higher AI spending will impact ServiceNow
• Negative Sentiment: The main pressure is concern over weaker fourth-quarter backlog guidance, which has fueled doubts about future growth and contributed to a steep recent decline. Investors are also worried that agentic AI could challenge per-seat software pricing and that higher AI-related spending and business-model changes could weigh on profitability. ServiceNow selloff and analyst target cuts Analyst questions from ServiceNow’s Q3 call

Analysts Set New Price Targets

Several brokerages have commented on NOW. Stifel Nicolaus set a $160.00 target price on shares of ServiceNow and gave the stock a "buy" rating in a report on Tuesday, October 6th. Mizuho set a $165.00 target price on shares of ServiceNow in a report on Thursday, October 29th. Wells Fargo & Company decreased their price target on shares of ServiceNow from $190.00 to $175.00 and set an "overweight" rating on the stock in a research report on Thursday, October 29th. KeyCorp reissued an "underweight" rating and issued a $110.00 price target (up from $85.00) on shares of ServiceNow in a research report on Thursday, October 29th. Finally, JPMorgan Chase & Co. boosted their price target on shares of ServiceNow from $150.00 to $160.00 and gave the company an "overweight" rating in a research report on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus price target of $154.50.

ServiceNow Price Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The company's 50-day simple moving average is $138.25 and its 200-day simple moving average is $115.29. The stock has a market capitalization of $113.24 billion, a price-to-earnings ratio of 78.48, a P/E/G ratio of 2.75 and a beta of 1.00.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.02). ServiceNow had a net margin of 9.36% and a return on equity of 15.38%. The firm had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. During the same period in the prior year, the business earned $4.82 earnings per share. ServiceNow's quarterly revenue was up 20.5% compared to the same quarter last year. Research analysts forecast that ServiceNow, Inc. will post 2.14 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the sale, the director directly owned 43,990 shares in the company, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the transaction, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,081 shares of company stock valued at $1,937,904 over the last three months. Corporate insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cornerstone Financial Management LLC grew its position in shares of ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 107 shares during the period. Marquette Asset Management LLC lifted its holdings in ServiceNow by 75.0% during the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock valued at $30,000 after buying an additional 129 shares in the last quarter. Kilter Group LLC bought a new stake in shares of ServiceNow in the 2nd quarter valued at about $31,000. Solstein Capital LLC bought a new stake in shares of ServiceNow in the 2nd quarter valued at about $35,000. Finally, Pathway Financial Advisers LLC purchased a new position in shares of ServiceNow in the 3rd quarter valued at approximately $38,000. Institutional investors own 87.18% of the company's stock.

About ServiceNow

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company's products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.

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