ServiceNow (NYSE:NOW) Price Target Lowered to $130.00 at Raymond James Financial

Key Points

• Raymond James cut its ServiceNow price target to $130 (from $160) but left an "outperform" rating, implying roughly a 50% upside from the recent close.
• Multiple brokers trimmed targets after the quarterly update (e.g., JPMorgan to $145, Citi to $154, Needham to $115), yet the MarketBeat consensus remains a Moderate Buy with a $155.86 price objective.
• ServiceNow beat Q1 revenue and raised its subscription outlook on stronger AI demand, but warned the Armis acquisition and Middle East deal delays will pressure near‑term margins and contributed to the stock's selloff to about $86.71.

ServiceNow (NYSE:NOW - Get Free Report) had its target price cut by research analysts at Raymond James Financial from $160.00 to $130.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The brokerage currently has an "outperform" rating on the information technology services provider's stock. Raymond James Financial's target price would suggest a potential upside of 49.93% from the company's previous close.

NOW has been the subject of several other research reports. JPMorgan Chase & Co. decreased their price target on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a research note on Thursday. Benchmark began coverage on shares of ServiceNow in a report on Wednesday, April 1st. They issued a "buy" rating and a $125.00 price objective for the company. Citigroup decreased their target price on shares of ServiceNow from $177.00 to $154.00 and set a "buy" rating for the company in a research report on Thursday. Needham & Company LLC dropped their price target on shares of ServiceNow from $155.00 to $115.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, HSBC reduced their price target 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. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $155.86.

ServiceNow Stock Performance

NOW stock traded down $16.36 during trading on Thursday, hitting $86.71. 17,589,364 shares of the company's stock traded hands, compared to its average volume of 20,024,004. The stock has a market capitalization 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 52 week low of $81.24 and a 52 week high of $211.48. The stock has a fifty day moving average price of $105.55 and a two-hundred day moving average price of $138.83. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.97. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business's revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the business posted $4.04 EPS. As a group, equities analysts anticipate that ServiceNow will post 2.49 EPS for the current fiscal year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the business's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director directly owned 46,430 shares in the company, valued at $4,697,323.10. The trade was a 3.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Paul Fipps sold 9,641 shares of the company's stock in a transaction dated 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 completion of the transaction, the insider directly owned 11,757 shares in the company, valued at approximately $1,245,419.01. The trade was a 45.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is owned by corporate insiders.

Institutional Trading of ServiceNow

A number of institutional investors and hedge funds have recently made changes to their positions in NOW. Cohen Klingenstein LLC boosted its position in shares of ServiceNow by 400.0% in the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after acquiring an additional 8,000 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its stake in ServiceNow by 385.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after purchasing an additional 2,064,440 shares during the last quarter. Natural Investments LLC boosted its holdings in ServiceNow by 332.0% in the 4th quarter. Natural Investments LLC now owns 16,453 shares of the information technology services provider's stock valued at $2,520,000 after purchasing an additional 12,644 shares during the period. Focus Financial Network Inc. grew its position in ServiceNow by 286.1% in the 4th quarter. Focus Financial Network Inc. now owns 53,650 shares of the information technology services provider's stock worth $8,219,000 after purchasing an additional 39,756 shares during the last quarter. Finally, Telos Capital Management Inc. increased its holdings in shares of ServiceNow by 706.0% during the 4th quarter. Telos Capital Management Inc. now owns 50,940 shares of the information technology services provider's stock worth $7,803,000 after purchasing an additional 44,620 shares during the period. Institutional investors and hedge funds own 87.18% of the company's stock.

Key Stories Impacting ServiceNow

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.

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