ServiceNow (NYSE:NOW) Given "Buy" Rating at BTIG Research

Key Points

• BTIG reaffirmed a Buy rating on ServiceNow with a $150 target, implying about a 64% upside$145.87 and an average rating of "Moderate Buy" despite several recent price-target cuts.
• ServiceNow reported Q1 revenue of $3.77 billion (up 22.1%) and EPS of $0.97 in line with expectations, and it announced embedding AI across products via a new Context Engine while raising its subscription outlook.
• Shares are trading around $91 after a roughly 60%+ drawdown from the 52-week high; recent insider selling and concerns about AI-driven margin pressure could cap near-term gains.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at BTIG Research in a research note issued to investors on Monday,Benzinga reports. They presently have a $150.00 target price on the information technology services provider's stock. BTIG Research's price objective suggests a potential upside of 64.41% from the company's previous close.

A number of other equities analysts have also commented on the stock. Evercore decreased their price objective on shares of ServiceNow from $175.00 to $140.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. Wells Fargo & Company decreased their price objective on shares of ServiceNow from $185.00 to $160.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. Mizuho decreased their price objective on shares of ServiceNow from $150.00 to $140.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. HSBC decreased their target price on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Finally, Argus decreased their target price on shares of ServiceNow from $180.00 to $134.00 and set a "buy" rating for the company in a research note on Friday, April 24th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, ServiceNow has an average rating of "Moderate Buy" and a consensus target price of $145.87.

ServiceNow Trading Up 0.1%

ServiceNow stock opened at $91.23 on Monday. The company has a 50 day moving average price of $103.45 and a 200 day moving average price of $134.58. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market capitalization of $94.06 billion, a price-to-earnings ratio of 54.37, a P/E/G ratio of 1.61 and a beta of 0.82.

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

Insider Activity at ServiceNow

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the sale, the insider 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 25,164 shares of company stock worth $2,497,021. Corporate insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after purchasing an additional 81,752,460 shares during the last quarter. State Street Corp lifted its stake in shares of ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC raised its holdings in ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after acquiring an additional 18,854,775 shares during the period. Finally, Morgan Stanley raised its holdings in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock worth $3,482,543,000 after acquiring an additional 17,514,679 shares during the period. Institutional investors and hedge funds own 87.18% of the company's stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Sector-wide earnings strength is lifting software names, creating a tailwind for ServiceNow as investors rotate back into enterprise software on upbeat results from peers like Oracle. Oracle (ORCL) Stock Trades Up, Here Is Why
• Positive Sentiment: ServiceNow announced it’s embedding AI across its product suite via a new Context Engine, signaling tighter product-level AI integration that can support upsells and stickier subscriptions. ServiceNow embeds AI across all products with Context Engine
• Positive Sentiment: Company fundamentals: Q1 revenue of ~$3.77B and EPS roughly flat with expectations, plus a raised full‑year subscription revenue outlook and deeper Google Cloud partnership — all supportive of the investment case for long-term growth. Is ServiceNow’s Strong Q1, AI Push, and Google Cloud Tie-Up Altering The Investment Case For ServiceNow (NOW)?
• Positive Sentiment: Analyst/market narratives are turning bullish in places — some commentators argue ServiceNow’s AI strategy could let it avoid a broad “AI SaaS” disruption and make the stock attractive after its large pullback. ServiceNow Just Figured Out a Way to Beat the AI "SaaS-Pocalypse"
• Neutral Sentiment: Broad software rally (Datadog, Zoom, Braze, others) is creating market-wide momentum; this helps ServiceNow but is not a company-specific catalyst. Datadog and Zoom Shares Skyrocket, What You Need To Know
• Negative Sentiment: Investors remain wary after a steep ~60%+ drawdown and a 16% drop in April tied to margin compression and concerns that new generative-AI entrants (e.g., Anthropic’s Mythos) could disrupt SaaS pricing and margins. That lingering skepticism can cap rallies. Why ServiceNow Stock Fell 16% in April

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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