ServiceNow, Inc. (NYSE:NOW) Short Interest Update

Key Points

• Short interest surged: Short interest rose 30.3% in April to 38,945,953 shares (about 3.8% of shares short) with a days‑to‑cover ratio of 1.5, reflecting increased bearish positioning.
• Fundamentals mixed with sentiment headwinds: ServiceNow reported Q1 revenue of $3.77B (+22.1% YoY) and EPS of $0.97 while raising its FY2026 subscription outlook, yet the stock has seen a sharp YTD decline and several brokerages have trimmed target prices.
• Insider selling and price weakness: Insiders sold 25,164 shares in the past 90 days (insiders own 0.34%), and shares traded down to $88.97 amid valuation compression (P/E ~53) and broader investor rotation.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) saw a large increase in short interest during the month of April. As of April 15th, there was short interest totaling 38,945,953 shares, an increase of 30.3% from the March 31st total of 29,878,635 shares. Based on an average daily volume of 25,350,720 shares, the days-to-cover ratio is currently 1.5 days. Currently, 3.8% of the company's shares are short sold.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the sale, the director directly owned 46,430 shares of the company's stock, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider directly owned 26,314 shares in the company, valued at approximately $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 25,164 shares of company stock valued at $2,497,021. Company insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Magnus Financial Group LLC raised its holdings in ServiceNow by 1.9% during the third quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider's stock worth $542,000 after buying an additional 11 shares during the last quarter. Avidian Wealth Enterprises LLC raised its holdings in ServiceNow by 2.5% during the third quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider's stock worth $417,000 after buying an additional 11 shares during the last quarter. Yoder Wealth Management Inc. raised its holdings in ServiceNow by 4.6% during the third quarter. Yoder Wealth Management Inc. now owns 272 shares of the information technology services provider's stock worth $250,000 after buying an additional 12 shares during the last quarter. Meridian Wealth Advisors LLC raised its holdings in ServiceNow by 2.2% during the third quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock worth $508,000 after buying an additional 12 shares during the last quarter. Finally, Chemistry Wealth Management LLC raised its stake in shares of ServiceNow by 4.6% in the third quarter. Chemistry Wealth Management LLC now owns 298 shares of the information technology services provider's stock worth $274,000 after purchasing an additional 13 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on NOW. The Goldman Sachs Group cut their target price on ServiceNow from $188.00 to $163.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Weiss Ratings lowered ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, April 21st. UBS Group set a $150.00 target price on ServiceNow in a research report on Thursday, April 23rd. BMO Capital Markets cut their target price on ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a research report on Thursday, April 23rd. Finally, Sanford C. Bernstein upped their target price on ServiceNow from $219.00 to $226.00 and gave the company an "outperform" rating in a research report on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and an average target price of $146.65.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Enterprise AI deployments and partner tie‑ups (example: TridentCare autonomous workflows) and deeper collaboration with Google Cloud signal real customer adoption that should support larger deals, renewals and AI monetization over time. ServiceNow AI Partnerships Test Workflow Stickiness As Shares Slide
• Positive Sentiment: Q1 results showed ~22% subscription growth and management raised FY2026 subscription outlook, supporting the narrative that AI-driven pricing and upsells are expanding average deal sizes and recurring revenue. NOW's AI-Driven Subscription Growth Accelerates
• Positive Sentiment: Some analysts and commentators view the post‑earnings sell‑off as overdone and are promoting buy‑the‑dip / double‑bottom cases, citing durable subscription economics and free cash flow that support M&A and buybacks. ServiceNow: Buy This Double Bottom
• Neutral Sentiment: Ecosystem momentum: ISG recognition of partners (Genpact, Zaelab) and case studies (U.S. firms standardizing ServiceNow for governed AI/workflow) expand long‑term adoption but are incremental near‑term revenue drivers. U.S. Firms Boost ServiceNow’s Impact with AI, Transparency
• Neutral Sentiment: New partner integrations (healthcare partnership with Simplify Alpha, European AI sovereignty initiatives) broaden addressable market and regulatory fit but require execution to convert into material revenue. Simplify Alpha Partners With ServiceNow
• Negative Sentiment: Despite the beat and lifted guidance, the stock has faced a sharp YTD decline as investors rotate into pure‑play AI names; valuation compression and concerns about near‑term margin/headwind dynamics are weighing on the multiple. What's Going on With ServiceNow Stock?
• Negative Sentiment: Insider selling was disclosed (Jacqueline Canney sold ~8,927 shares at ~$89.60), which can add short‑term sentiment pressure even if single transactions aren't proof of long‑term outlook change. Insider SEC Filing

ServiceNow Stock Down 1.7%

Shares of NOW stock traded down $1.52 on Wednesday, reaching $88.97. 18,372,468 shares of the company were exchanged, compared to its average volume of 21,250,809. The company has a 50-day moving average of $104.21 and a 200-day moving average of $135.92. ServiceNow has a one year low of $81.24 and a one year high of $211.48. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The company has a market cap of $91.73 billion, a price-to-earnings ratio of 53.02, a PEG ratio of 1.59 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the prior year, the business earned $0.81 EPS. The firm's revenue for the quarter was up 22.1% on a year-over-year basis. Analysts anticipate that ServiceNow will post 2.37 earnings per share for the current year.

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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