ServiceNow (NYSE:NOW) Price Target Cut to $122.00 by Analysts at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald cut its price target on ServiceNow to $122 from $200 while keeping an "overweight" rating, a target that implies roughly a 40.7% upside from the stock's current price.
• ServiceNow beat Q1 revenue expectations with $3.77B (up 22.1% YoY) and met EPS estimates of $0.97, and management raised its subscription revenue outlook citing stronger AI adoption, yet the stock dropped to about $86.71 on the news.
• Multiple brokers (HSBC, Piper Sandler, Citi, DA Davidson) trimmed targets and investors are cautious partly due to the Armis acquisition weighing on margins (≈75 bps FY headwind), though the consensus rating remains around a "Moderate Buy" with an average target near $155.86.

ServiceNow (NYSE:NOW - Get Free Report) had its price target cut by equities research analysts at Cantor Fitzgerald from $200.00 to $122.00 in a note issued to investors on Thursday,MarketScreener reports. The firm presently has an "overweight" rating on the information technology services provider's stock. Cantor Fitzgerald's price objective points to a potential upside of 40.71% from the stock's current price.

Several other analysts have also recently commented on the company. HSBC lowered their target price on ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a research report on Thursday, April 16th. Piper Sandler reduced their price target on ServiceNow from $200.00 to $140.00 and set an "overweight" rating for the company in a research report on Thursday. Arete Research set a $200.00 price target on ServiceNow in a research note on Tuesday, January 6th. DA Davidson lowered their price target on ServiceNow from $220.00 to $190.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Citigroup reduced their price objective on shares of ServiceNow from $177.00 to $154.00 and set a "buy" rating for the company in a report on Thursday. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, ServiceNow has an average rating of "Moderate Buy" and an average target price of $155.86.

ServiceNow Stock Performance

ServiceNow stock traded down $16.36 during midday trading on Thursday, reaching $86.71. 17,589,364 shares of the stock traded hands, compared to its average volume of 20,024,004. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $211.48. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm has a market cap of $89.84 billion, a price-to-earnings ratio of 52.17, a PEG ratio of 1.68 and a beta of 1.01. The firm has a fifty day moving average price of $105.55 and a two-hundred day moving average price of $138.83.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate 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 net margin of 13.16% and a return on equity of 18.54%. ServiceNow's revenue was up 22.1% compared to the same quarter last year. During the same quarter last year, the business earned $4.04 earnings per share. On average, equities research analysts forecast that ServiceNow will post 2.49 earnings per share for the current year.

Insider Activity

In other news, insider Paul Fipps sold 9,641 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total value of $1,021,271.13. Following the sale, the insider owned 11,757 shares of the company's stock, valued at approximately $1,245,419.01. The trade was a 45.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 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. This trade represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently bought and sold shares of the business. waypoint wealth counsel boosted its position in shares of ServiceNow by 9.1% during the 1st quarter. waypoint wealth counsel now owns 4,033 shares of the information technology services provider's stock valued at $422,000 after purchasing an additional 338 shares in the last quarter. North Star Investment Management Corp. raised its holdings in shares of ServiceNow by 1,016.0% in the 1st quarter. North Star Investment Management Corp. now owns 1,116 shares of the information technology services provider's stock worth $117,000 after purchasing an additional 1,016 shares in the last quarter. Continuum Advisory LLC lifted its stake in ServiceNow by 41.6% during the first quarter. Continuum Advisory LLC now owns 3,119 shares of the information technology services provider's stock valued at $326,000 after purchasing an additional 916 shares during the last quarter. Portus Wealth Advisors LLC acquired a new stake in ServiceNow during the first quarter valued at approximately $53,000. Finally, Apollon Wealth Management LLC boosted its holdings in ServiceNow by 25.2% during the first quarter. Apollon Wealth Management LLC now owns 20,555 shares of the information technology services provider's stock worth $2,149,000 after buying an additional 4,143 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

ServiceNow News Summary

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.