ServiceNow (NYSE:NOW) Price Target Lowered to $134.00 at Argus

Key Points

• Argus cut its price target on ServiceNow to $134 (from $180) but kept a "buy" rating, implying roughly a 56.8% upside from the prior close.
• Several other analysts trimmed targets (e.g., Macquarie to $140, Goldman to $163, Cantor to $122), leaving an average analyst target around $146.65 and a consensus "Moderate Buy," which contributed to recent selling pressure.
• ServiceNow beat Q1 revenue and matched EPS while touting AI adoption and a Google Cloud partnership, but the Armis acquisition and geopolitical deal delays are expected to weigh on near‑term margins and subscription growth, raising investor concerns.

ServiceNow (NYSE:NOW - Get Free Report) had its price target cut by stock analysts at Argus from $180.00 to $134.00 in a note issued to investors on Friday,MarketScreener reports. The firm presently has a "buy" rating on the information technology services provider's stock. Argus' price target indicates a potential upside of 56.76% from the stock's previous close.

Several other analysts have also recently issued reports on NOW. Macquarie Infrastructure cut their target price on ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a research report on Thursday, January 29th. The Goldman Sachs Group cut their target price on ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a research report on Thursday. KeyCorp set a $85.00 target price on ServiceNow and gave the stock an "underweight" rating in a research report on Thursday. Mizuho cut their target price on ServiceNow from $150.00 to $140.00 and set an "outperform" rating for the company in a research report on Thursday. Finally, Cantor Fitzgerald cut their price target on ServiceNow to $122.00 and set an "overweight" rating for the company in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $146.65.

ServiceNow Price Performance

Shares of NYSE:NOW traded up $0.70 during trading on Friday, hitting $85.48. 7,892,008 shares of the company's stock were exchanged, compared to its average volume of 20,735,670. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. ServiceNow has a 52-week low of $81.24 and a 52-week high of $211.48. The business's 50-day simple moving average is $105.18 and its 200 day simple moving average is $138.45. The company has a market cap of $88.57 billion, a price-to-earnings ratio of 51.37, a PEG ratio of 1.73 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last released its 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. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. During the same quarter last year, the business posted $0.81 earnings per share. The firm's revenue was up 22.1% on a year-over-year basis. As a group, equities analysts predict that ServiceNow will post 2.49 EPS for the current year.

Insider Buying and Selling at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the completion of the transaction, the director owned 46,430 shares in the company, valued at $4,697,323.10. This trade represents a 3.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction that occurred 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 transaction, the insider owned 26,314 shares of the company's stock, valued at $2,781,652.94. This represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 16,237 shares of company stock worth $1,697,162 in the last quarter. 0.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently modified their holdings of the stock. IAG Wealth Partners LLC lifted its stake in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 18 shares during the last quarter. Bogart Wealth LLC lifted its stake in shares of ServiceNow by 93.8% in the 3rd quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider's stock valued at $29,000 after purchasing an additional 15 shares during the last quarter. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow in the 3rd quarter valued at approximately $29,000. Albion Financial Group UT lifted its stake in shares of ServiceNow by 78.9% in the 3rd quarter. Albion Financial Group UT now owns 34 shares of the information technology services provider's stock valued at $31,000 after purchasing an additional 15 shares during the last quarter. Finally, True Wealth Design LLC lifted its stake in shares of ServiceNow by 52.0% in the 3rd quarter. True Wealth Design LLC now owns 38 shares of the information technology services provider's stock valued at $35,000 after purchasing an additional 13 shares during the last quarter. 87.18% of the stock is owned by institutional investors.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 revenue and subscription strength — ServiceNow beat revenue expectations and raised its annual subscription outlook, driven by AI product adoption (subscription revenue +22% y/y). ServiceNow Reports Q1 Results
• Positive Sentiment: AI momentum and partnerships — Management emphasized accelerating revenue from AI workflows and deepened a strategic partnership with Google Cloud to expand AI agents across industries — a key long-term growth driver. ServiceNow & Google Cloud AI Partnership
• Positive Sentiment: Strategic M&A completed — ServiceNow closed the Armis cyber-exposure acquisition, expanding security capabilities (strategic for cross-sell even as it temporarily pressures margins). Armis Acquisition Closed
• Neutral Sentiment: EPS roughly in line — Non-GAAP EPS matched expectations ($0.97), so the selloff is less about the quarter’s headline profit and more about forward-looking items. Earnings Details
• Negative Sentiment: Margin pressure from Armis and buy vs. integration costs — Management said the Armis deal will subtract from operating margins this year (management quantified a mid-single to low-double-digit bps headwind), raising near-term profitability concerns. Armis Margin Impact
• Negative Sentiment: Geopolitical deal delays — ServiceNow flagged that the Iran/Middle East conflict delayed several large deals, creating an estimated ~75 bps headwind to subscription revenue in Q1 and raising investor concern about near-term growth visibility. Deal Delays / Iran Impact
• Negative Sentiment: Analyst repricing and sell-side cuts — Multiple firms trimmed price targets and some modeled lower near-term growth/margins; that led to forced selling and sector contagion as software peers were marked down. Analyst Cuts & Market Reaction
• Negative Sentiment: Sector risk and AI-disruption fears — ServiceNow’s cautious near-term tone reignited broader concerns about AI disruption and margin recovery across the software group, amplifying the drop. Sector Reaction

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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