ServiceNow (NYSE:NOW) Price Target Lowered to $140.00 at Piper Sandler

Key Points

• Piper Sandler cut its price target on ServiceNow from $200 to $140 while maintaining an "overweight" rating, a target that implies roughly a 35.7% upside from the prior close.
• Several other firms have trimmed targets recently, leaving a market consensus target of $170.51 and an overall analyst stance of "Moderate Buy" (majority Buy/Outperform ratings).
• ServiceNow reported Q1 revenue up 22.1% with EPS in line and raised its subscription-revenue outlook on strong AI demand, but warned the Armis acquisition will pressure margins (~75 bps FY; ~125 bps in Q2), fueling short-term volatility.

ServiceNow (NYSE:NOW - Get Free Report) had its price target decreased by investment analysts at Piper Sandler from $200.00 to $140.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the information technology services provider's stock. Piper Sandler's target price would indicate a potential upside of 35.72% from the company's previous close.

Other equities research analysts also recently issued research reports about the stock. Royal Bank Of Canada cut their target price on shares of ServiceNow from $150.00 to $121.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. Jefferies Financial Group reiterated a "buy" rating on shares of ServiceNow in a research report on Thursday. Wells Fargo & Company cut their target price on shares of ServiceNow from $225.00 to $185.00 and set an "overweight" rating for the company in a research report on Tuesday, March 31st. Macquarie Infrastructure cut their target price on shares of ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a research report on Thursday, January 29th. Finally, Robert W. Baird cut their target price on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating for the company in a research report on Thursday. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $170.51.

ServiceNow Trading Up 3.0%

ServiceNow stock opened at $103.16 on Thursday. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market capitalization of $106.89 billion, a price-to-earnings ratio of 61.85, a P/E/G ratio of 1.68 and a beta of 1.01. The company has a 50 day moving average price of $105.55 and a 200 day moving average price of $138.83.

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 analysts' consensus estimates of $0.97. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter in the prior year, the firm earned $4.04 EPS. The company's revenue was up 22.1% compared to the same quarter last year. Research analysts forecast that ServiceNow will post 2.49 EPS for the current year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the firm'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 owned 46,430 shares in the company, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total transaction of $147,994.00. Following the transaction, the insider owned 26,314 shares in the company, valued at $2,781,652.94. This represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Brady Martz Wealth Solutions LLC raised its holdings in ServiceNow by 1.3% in the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider's stock worth $775,000 after acquiring an additional 11 shares during the period. Magnus Financial Group LLC raised its holdings in ServiceNow by 1.9% in the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider's stock worth $542,000 after acquiring an additional 11 shares during the period. Avidian Wealth Enterprises LLC raised its holdings in ServiceNow by 2.5% in the 3rd quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider's stock worth $417,000 after acquiring an additional 11 shares during the period. Traveka Wealth LLC raised its holdings in ServiceNow by 3.8% in the 3rd quarter. Traveka Wealth LLC now owns 330 shares of the information technology services provider's stock worth $304,000 after acquiring an additional 12 shares during the period. Finally, Regatta Capital Group LLC raised its holdings in ServiceNow by 1.9% in the 3rd quarter. Regatta Capital Group LLC now owns 633 shares of the information technology services provider's stock worth $583,000 after acquiring an additional 12 shares during the period. Institutional investors own 87.18% of the company's stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 results showed solid revenue growth and ServiceNow raised its annual subscription-revenue outlook, citing strong enterprise adoption of its AI products — a driver for longer-term revenue expansion. ServiceNow boosts annual subscription revenue outlook on strong AI software demand
• Positive Sentiment: Strategic moves broaden product reach: ServiceNow closed the Armis acquisition (adds OT/IoT and agentless asset visibility) and deepened ties with Google Cloud while landing customer wins (e.g., TridentCare) — these support cross-sell and AI/security revenue opportunities. ServiceNow inches up after it closes Armis acquisition ServiceNow and Google Cloud unite AI agents for autonomous enterprise operations
• Neutral Sentiment: Management reiterated that AI boosts productivity (CEO expects to hold headcount flat), which could improve operating leverage over time but leaves short-term margin and execution questions open. AI will boost productivity so ServiceNow won't have to backfill open jobs, CEO says
• Negative Sentiment: Near-term margin pressure: ServiceNow warned the Armis deal will dent operating margins (~75 bps full year; ~125 bps in Q2), which was a key reason the stock sold off after hours. Margin guidance concerns are a primary driver of recent volatility. ServiceNow Posts Revenue Growth, But Says Armis Deal Will Weigh on Margins
• Negative Sentiment: Middle East conflict has delayed several large deals, creating a reported ~75 bps revenue headwind in Q1 and contributing to cautious guidance and investor disappointment. Management expects those deals to close later in the year, so impact is timing-related. ServiceNow flags Middle East deal delays, shares crash
• Negative Sentiment: Sector and sentiment pressure: broader AI-disruption fears and elevated short interest in ServiceNow amplified the reaction to mixed guidance/ margin news, prompting sharp intraday moves in NOW and other software names. US software stocks slide as IBM, ServiceNow results reignite AI disruption fears

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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