ServiceNow (NYSE:NOW) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham reissued a "Buy" rating on ServiceNow with a $115 price target (about a 25% upside), while the consensus remains a Moderate Buy with an average analyst target near $145.92 and most analysts rated the stock "Buy".
• ServiceNow matched Q1 estimates with $0.97 EPS and $3.77B revenue (up 22.1% year‑over‑year), and management announced a plan to roughly double subscription revenue to about $30–32B by 2030 while its AI product Now Assist has surpassed $750M in annual contract value.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "buy" rating reissued by analysts at Needham & Company LLC in a report released on Tuesday,Benzinga reports. They currently have a $115.00 price objective on the information technology services provider's stock. Needham & Company LLC's price objective would indicate a potential upside of 25.11% from the company's current price.

NOW has been the topic of a number of other research reports. Oppenheimer set a $130.00 price objective on ServiceNow and gave the stock an "outperform" rating in a report on Wednesday, April 15th. TD Cowen reissued a "buy" rating and set a $140.00 price objective on shares of ServiceNow in a report on Thursday, April 23rd. UBS Group set a $150.00 price objective on ServiceNow in a report on Thursday, April 23rd. HSBC dropped their price objective on ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Finally, Wall Street Zen cut ServiceNow from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and an average target price of $145.92.

ServiceNow Stock Up 0.8%

NOW stock opened at $91.92 on Tuesday. 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 company has a market capitalization of $94.77 billion, a price-to-earnings ratio of 54.78, a PEG ratio of 1.61 and a beta of 0.82. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The stock has a fifty day moving average of $103.45 and a 200-day moving average of $134.58.

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 the consensus estimate of $0.97. The company had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm's quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.81 EPS. As a group, equities research analysts predict that ServiceNow will post 2.35 earnings per share for the current year.

Insiders Place Their Bets

In other ServiceNow news, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction dated 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 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 legal filing with the SEC, which is available at this link. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the sale, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 25,164 shares of company stock worth $2,497,021. 0.34% of the stock is currently owned by insiders.

Institutional Trading of ServiceNow

Several institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC increased its position in shares of ServiceNow by 1.1% during the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after purchasing an additional 30 shares during the last quarter. Sivia Capital Partners LLC increased its position in shares of ServiceNow by 4.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock valued at $861,000 after purchasing an additional 34 shares during the last quarter. United Bank increased its position in shares of ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock valued at $1,562,000 after purchasing an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. increased its position in shares of ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after purchasing an additional 42 shares during the last quarter. Finally, Nebula Research & Development LLC increased its position in shares of ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock valued at $931,000 after purchasing an additional 609 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Management unveiled long‑term growth targets and product traction: ServiceNow laid out a plan to roughly double subscription revenue to about $30B by 2030 and said its Now Assist product surpassed $750M in annual contract value — a concrete sign AI-driven offerings are already monetizing. ServiceNow lays out path to $30 billion
• Positive Sentiment: Company projects very large TAM expansion: ServiceNow told investors it expects revenue could roughly double to ~$32B by 2030, reinforcing the long‑range growth story and investor thesis for durable SaaS revenue expansion. ServiceNow Expects Revenue Will Double
• Positive Sentiment: Enterprise AI partnerships and customer wins highlighted: A new multi‑year DXC agreement (DXC as an early adopter) and other partnership momentum were cited ahead of Analyst Day, supporting expectations for scaled AI deployments in core workflows. QuiverQuant coverage of DXC deal
• Positive Sentiment: Analyst support: BTIG reiterated a Buy rating with a $150 price target, signaling confidence from at least some sell‑side analysts and offering potential upside to consensus targets. BTIG Buy rating
• Neutral Sentiment: Investor day themes expected: BNP and other outlets expect the company to emphasize AI product innovation and pricing/monetization at Analyst Day — these are informational catalysts that could be market‑moving depending on specifics. BNP preview of Investor Day
• Negative Sentiment: Some analysts trimmed targets amid mixed near‑term dynamics: Wolfe Research cut its price target to $125 (from $175) while keeping an Outperform rating, citing conservatism after delayed on‑prem deals in the Middle East — a reminder of near‑term execution and regional timing risks. Wolfe Research lowers PT
• Negative Sentiment: Investor worry about AI “displacement” and acquisition strategy: Media and some investors remain concerned that AI could compress SaaS pricing or that recent acquisitive moves are masking organic growth issues — these narratives have pressured the stock recently. CEO message on acquisitions

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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