Royal Bank Of Canada Reiterates "Outperform" Rating for ServiceNow (NYSE:NOW)

Key Points

• Royal Bank of Canada reiterated an "Outperform" rating on ServiceNow with a $121 price target, implying roughly a 33% upside from the stock's current level.
• Analyst actions are mixed but the consensus remains a "Moderate Buy" with a $146.35 average target; management also reiterated an aggressive long-term goal to grow subscription revenue toward ~$30B by 2030 and said Now Assist has surpassed ~$750M ACV, underpinning the AI monetization narrative.
• ServiceNow shares traded down to $90.69 (about -1.4%); the company reported $0.97 EPS (in line) and revenue of $3.77B (up 22.1% YoY), while insiders have reduced positions recently and institutional ownership is about 87%.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "outperform" rating reiterated by Royal Bank Of Canada in a note issued to investors on Tuesday,Benzinga reports. They presently have a $121.00 price target on the information technology services provider's stock. Royal Bank Of Canada's price target would indicate a potential upside of 33.42% from the company's current price.

NOW has been the subject of a number of other research reports. Argus lowered their target price on ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research note on Friday, April 24th. Mizuho lowered their target price on ServiceNow from $150.00 to $140.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. Raymond James Financial lowered their target price on ServiceNow from $160.00 to $130.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. JPMorgan Chase & Co. lowered their target price on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. Finally, Sanford C. Bernstein raised their target price on ServiceNow from $219.00 to $226.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $146.35.

ServiceNow Trading Down 1.4%

NYSE NOW traded down $1.28 on Tuesday, hitting $90.69. The company's stock had a trading volume of 10,477,051 shares, compared to its average volume of 21,158,486. ServiceNow has a 52-week low of $81.24 and a 52-week high of $211.48. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The company's 50-day simple moving average is $103.45 and its 200 day simple moving average is $134.58. The firm has a market cap of $93.50 billion, a P/E ratio of 54.17, a PEG ratio of 1.61 and a beta of 0.82.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting the consensus estimate of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter last year, the business posted $0.81 EPS. The business's revenue was up 22.1% on a year-over-year basis. Research analysts predict that ServiceNow will post 2.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's 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 transaction, the insider owned 26,314 shares of the company's stock, valued at $2,781,652.94. This trade represents a 5.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul Fipps sold 9,641 shares of the firm's stock in a transaction that occurred 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 transaction, the insider directly owned 11,757 shares of the company's stock, valued at approximately $1,245,419.01. This trade represents a 45.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 25,164 shares of company stock worth $2,497,021 in the last 90 days. Corporate insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

A number of institutional investors and hedge funds have recently modified their holdings of the business. Harel Insurance Investments & Financial Services Ltd. increased its holdings in shares of ServiceNow by 12.1% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 3,645 shares of the information technology services provider's stock worth $379,000 after purchasing an additional 392 shares in the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group bought a new stake in shares of ServiceNow in the 1st quarter worth $5,018,000. Ethos Financial Group LLC increased its holdings in shares of ServiceNow by 46.1% in the 1st quarter. Ethos Financial Group LLC now owns 2,425 shares of the information technology services provider's stock worth $254,000 after purchasing an additional 765 shares in the last quarter. Signet Financial Management LLC increased its holdings in shares of ServiceNow by 1.3% in the 1st quarter. Signet Financial Management LLC now owns 14,987 shares of the information technology services provider's stock worth $1,567,000 after purchasing an additional 189 shares in the last quarter. Finally, Sigma Planning Corp increased its holdings in shares of ServiceNow by 16.8% in the 1st quarter. Sigma Planning Corp now owns 18,765 shares of the information technology services provider's stock worth $1,962,000 after purchasing an additional 2,694 shares in the last quarter. Institutional investors own 87.18% of the company's stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Several firms raised price targets or reiterated buy/outperform ratings after analyst/Investor Day commentary, signaling renewed buy-side conviction (Evercore to $150, Capital One to $120, Barclays raised to $134; Citi and BTIG also bullish). These upgrades support upside expectations for the stock. Evercore price-target raise
• Positive Sentiment: Enterprise partnerships and product integrations announced around Knowledge26 (Cloudera zero-copy connector, Ataccama data-quality integration, Novaworks HR system built on Now, Thrive platform updates) strengthen ServiceNow’s position as an AI/workflow platform and help expand addressable market and adoption. Cloudera connector Ataccama integration
• Positive Sentiment: Management reiterated an aggressive long-term target (doubling subscription revenue toward ~$30B by 2030) and highlighted Now Assist surpassing ~$750M ACV — metrics that underpin long-term growth/monetization of AI offerings. Business Insider revenue target
• Neutral Sentiment: Investor/Analyst Day focused on AI product innovation, pricing and monetization; these are strategic positives but materialization depends on execution and timing. Investor Day preview
• Neutral Sentiment: CEO comments on an active M&A cadence aim to reassure investors but leave open questions on integration and ROI timing. CEO acquisitions comments
• Negative Sentiment: Wolfe Research cut its price target (from $175 to $125), citing conservative guidance and delayed on‑premise deals in some regions — a reminder that near-term execution risks and regional deal timing can pressure sentiment. Wolfe Research lowered PT
• Negative Sentiment: Broader “SaaSocalypse”/AI-displacement worries and sector re-rating have weighed on valuation multiples despite product progress, contributing to today’s weaker price action. TipRanks on SaaS concerns

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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