Sanford C. Bernstein Issues Positive Forecast for ServiceNow (NYSE:NOW) Stock Price

Key Points

• Sanford C. Bernstein raised its price target on ServiceNow to $226 and maintained an "outperform" rating, implying roughly a 160.65% upside
• ServiceNow beat Q1 expectations with $3.77B revenue and subscription revenue up ~22% YoY, and raised its annual subscription outlook on stronger AI demand, but the Armis acquisition and Middle East deal delays are expected to pressure margins (~75 bps FY, ~125 bps Q2), contributing to a stock drop to $86.71.

ServiceNow (NYSE:NOW - Get Free Report) had its price target raised by investment analysts at Sanford C. Bernstein from $219.00 to $226.00 in a research report issued on Thursday,MarketScreener reports. The firm currently has an "outperform" rating on the information technology services provider's stock. Sanford C. Bernstein's price objective indicates a potential upside of 160.65% from the stock's previous close.

Other research analysts have also issued reports about the stock. Evercore cut their target price on shares of ServiceNow from $175.00 to $140.00 and set an "outperform" rating for the company in a research report on Thursday. Macquarie Infrastructure dropped their price target on ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a research note on Thursday, January 29th. Morgan Stanley cut their price objective on ServiceNow from $210.00 to $180.00 and set an "overweight" rating for the company in a report on Thursday. Wall Street Zen lowered ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Canaccord Genuity Group decreased their price objective on ServiceNow from $200.00 to $145.00 and set a "buy" rating on the stock in a report on Thursday. Three analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus price target of $155.86.

ServiceNow Stock Performance

NYSE NOW traded down $16.36 during trading on Thursday, hitting $86.71. 17,589,364 shares of the company's stock traded hands, compared to its average volume of 20,024,004. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The stock has a market capitalization of $89.84 billion, a price-to-earnings ratio of 52.17, a PEG ratio of 1.68 and a beta of 1.01. ServiceNow has a 12-month low of $81.24 and a 12-month high of $211.48. The business has a 50 day moving average of $105.55 and a 200-day moving average of $138.83.

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 (EPS) for the quarter, meeting analysts' consensus estimates of $0.97. The company 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%.The firm's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period in the previous year, the company posted $4.04 EPS. As a group, equities research analysts anticipate that ServiceNow will post 2.49 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, insider Kevin Thomas Mcbride sold 1,400 shares of the business's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider directly owned 26,314 shares of the company's stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul Fipps sold 9,641 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the sale, the insider directly owned 11,757 shares in the company, valued at $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 16,237 shares of company stock valued at $1,697,162. Corporate insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. IAG Wealth Partners LLC boosted its stake in shares of ServiceNow by 200.0% in the 3rd 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 last quarter. Noble Wealth Management PBC increased its position in ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 128 shares during the last quarter. Millstone Evans Group LLC lifted its holdings in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 132 shares during the period. CBIZ Investment Advisory Services LLC lifted its holdings in ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after acquiring an additional 135 shares during the period. Finally, Blueline Advisors LLC purchased a new position in ServiceNow in the fourth quarter worth about $25,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

About ServiceNow

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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