ServiceNow (NYSE:NOW) Stock Price Up 1.5% Following Analyst Upgrade

Key Points

• Argus raised ServiceNow’s price target from $134 to $170 and maintained a buy rating, helping shares rise 1.5% to about $139.92 in midday trading.
• Analyst sentiment remains favorable, with 35 buy ratings and a consensus “Moderate Buy” rating; the consensus price target is $146.46.
• ServiceNow’s latest quarter exceeded expectations, with $0.90 in EPS and $3.99 billion in revenue, up 24% year over year. However, the stock’s premium valuation and potential AI competition remain key risks, while insiders have sold roughly $1.94 million of shares over the past 90 days.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares were up 1.5% during mid-day trading on Thursday after Argus raised their price target on the stock from $134.00 to $170.00. Argus currently has a buy rating on the stock. ServiceNow traded as high as $142.51 and last traded at $139.9210. Approximately 11,275,272 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 21,871,850 shares. The stock had previously closed at $137.87.

Other equities analysts also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft lifted their price target on shares of ServiceNow from $135.00 to $155.00 and gave the company a "buy" rating in a report on Monday, September 21st. Weiss Ratings upgraded shares of ServiceNow from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, August 20th. Citigroup restated a "market outperform" rating on shares of ServiceNow in a research note on Tuesday. Oppenheimer reaffirmed an "outperform" rating and issued a $140.00 target price (up from $130.00) on shares of ServiceNow in a report on Wednesday, July 15th. Finally, UBS Group reissued a "neutral" rating and set a $150.00 price target (up from $110.00) on shares of ServiceNow in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $146.46.

Insider Buying and Selling at ServiceNow

In other news, Director Paul Chamberlain sold 2,700 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares in the company, valued at $5,960,645. This trade represents a 5.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of ServiceNow stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the sale, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This trade represents 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. In the last ninety days, insiders have sold 14,081 shares of company stock worth $1,937,904. Insiders own 0.34% of the company's stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Argus raised its price target for ServiceNow from $134 to $170 and maintained a “buy” rating, citing potential upside as investor sentiment toward the company improves. ServiceNow Stock Price Target Raised at Argus
• Positive Sentiment: UBS reported that third-quarter demand trends appear stable to improving, with growing interest in AI and security products supporting ServiceNow’s growth outlook. ServiceNow demand trends show improvement as UBS raises price target
• Positive Sentiment: Raleigh, North Carolina, is using ServiceNow’s AI agents to reduce IT service-desk costs by 66%, providing a concrete example of productivity gains that could help drive public-sector and enterprise adoption. Raleigh reduces IT service desk costs with ServiceNow AI agents
• Positive Sentiment: ServiceNow’s Armis cybersecurity business partnered with Core6 to extend cyber-exposure monitoring to storage and backup systems, broadening the company’s security product opportunity. Core6 announces partnership with Armis from ServiceNow
• Positive Sentiment: Bundesliga selected ServiceNow as its official CRM partner after reporting that its platform resolved 89% of fan questions at first contact, offering another reference customer for the company’s CRM expansion. Bundesliga expands use of ServiceNow CRM
• Neutral Sentiment: ServiceNow will report third-quarter 2026 results after the market closes on October 28. The announcement creates a near-term catalyst, with results and management commentary on AI demand likely to determine the next major move. ServiceNow third-quarter 2026 earnings announcement
• Negative Sentiment: Zacks highlighted that ServiceNow shares remain vulnerable to AI competition and valuation concerns; despite long-term adoption and cybersecurity opportunities, the stock’s premium earnings multiple leaves less room for disappointment. NOW is overvalued at 28.92 times P/E

Institutional Trading of ServiceNow

A number of large investors have recently added to or reduced their stakes in NOW. Cornerstone Financial Management LLC increased its position in ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 107 shares during the last quarter. CrossGen Wealth LLC bought a new position in ServiceNow during the first quarter valued at $29,000. Marquette Asset Management LLC grew its stake in shares of ServiceNow by 75.0% in the 2nd quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider's stock worth $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 worth about $31,000. Finally, Howard Hughes Medical Institute raised its position in shares of ServiceNow by 404.5% during the 4th quarter. Howard Hughes Medical Institute now owns 222 shares of the information technology services provider's stock valued at $34,000 after buying an additional 178 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

ServiceNow Trading Up 1.5%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The stock's fifty day moving average is $131.68 and its 200 day moving average is $111.95. The stock has a market cap of $144.68 billion, a P/E ratio of 87.45, a P/E/G ratio of 2.53 and a beta of 0.99.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. The company had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The firm's revenue for the quarter was up 24.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 earnings per share. As a group, equities research analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company's products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.

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