ServiceNow (NYSE:NOW) Price Target Cut to $145.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on ServiceNow from $195 to $145 but kept an overweight rating, implying roughly a 67% upside from the current stock price.
• ServiceNow slightly beat Q1 revenue estimates and raised its subscription-revenue outlook on stronger AI demand, but management warned the Armis acquisition and delayed large Middle East deals will pressure near-term margins and growth.
• The stock plunged, trading around $86.71, prompting multiple analyst target cuts even as MarketBeat shows a consensus "Moderate Buy" with an average target near $155.86.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective lowered by JPMorgan Chase & Co. from $195.00 to $145.00 in a report released on Thursday,MarketScreener reports. The firm currently has an "overweight" rating on the information technology services provider's stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 67.23% from the stock's current price.

Several other research analysts have also recently commented on the company. BTIG Research reissued a "buy" rating and set a $185.00 target price on shares of ServiceNow in a research note on Monday. Argus raised ServiceNow to a "strong-buy" rating in a report on Wednesday, February 4th. The Goldman Sachs Group dropped their target price on shares of ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a report on Thursday. Royal Bank Of Canada lowered their price objective on ServiceNow from $150.00 to $121.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. Finally, DA Davidson cut their price target on shares of ServiceNow from $220.00 to $190.00 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 issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and an average target price of $155.86.

ServiceNow Price Performance

Shares of NOW traded down $16.36 during trading hours on Thursday, hitting $86.71. 17,589,364 shares of the stock were exchanged, compared to its average volume of 20,024,004. The company has a market cap of $89.84 billion, a price-to-earnings ratio of 52.17, a price-to-earnings-growth 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 stock's 50-day moving average price is $105.55 and its two-hundred day moving average price is $138.83. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. The business had revenue of $3.77 billion during 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 company's quarterly revenue was up 22.1% on a year-over-year basis. During the same period last year, the business posted $4.04 earnings per share. Research analysts expect 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 ServiceNow stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the transaction, the insider owned 11,757 shares of the company's stock, valued at $1,245,419.01. The trade was a 45.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction on Thursday, February 12th. The stock was 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 in the company, valued at $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 16,237 shares of company stock worth $1,697,162. Corporate insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. IAG Wealth Partners LLC grew its position in ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 18 shares during the last quarter. Noble Wealth Management PBC raised its position in ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 128 shares during the last quarter. Millstone Evans Group LLC raised its position in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC boosted its stake 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 worth $25,000 after purchasing an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC bought a new stake in shares of ServiceNow during the fourth quarter worth $25,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Key ServiceNow News

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

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.

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.