ServiceNow (NYSE:NOW) Price Target Lowered to $163.00 at The Goldman Sachs Group

Key Points

• Goldman Sachs cut its price target on ServiceNow from $188 to $163 but kept a "buy" rating; several other firms trimmed targets and MarketBeat shows a consensus "Moderate Buy" with a $155.86 average price target.
• The stock fell $16.26 to $86.81 midday on heavy volume, leaving a market cap near $90 billion and a P/E of about 52 as investors reacted to mixed news and analyst downgrades.
• Q1/Outlook: ServiceNow beat Q1 revenue estimates with subscription revenue up ~22% YoY and raised subscription guidance on AI demand, but management warned of margin pressure from the Armis acquisition and growth headwinds from delayed large deals.

ServiceNow (NYSE:NOW - Get Free Report) had its price target cut by equities research analysts at The Goldman Sachs Group from $188.00 to $163.00 in a research note issued to investors on Thursday, Marketbeat.com reports. The firm presently has a "buy" rating on the information technology services provider's stock. The Goldman Sachs Group's target price would suggest a potential upside of 87.76% from the stock's previous close.

Several other research firms have also recently issued reports on NOW. Deutsche Bank Aktiengesellschaft cut their price target on shares of ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a report on Thursday, April 16th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $200.00 price objective on shares of ServiceNow in a report on Thursday, January 29th. Citigroup cut their target price on ServiceNow from $177.00 to $154.00 and set a "buy" rating for the company in a research note on Thursday. Benchmark started coverage on ServiceNow in a report on Wednesday, April 1st. They issued a "buy" rating and a $125.00 price target for the company. Finally, Evercore restated an "outperform" rating and issued a $175.00 price target (down from $225.00) on shares of ServiceNow in a research note on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, ServiceNow presently has a consensus rating of "Moderate Buy" and a consensus price target of $155.86.

ServiceNow Stock Performance

NYSE:NOW traded down $16.26 during midday trading on Thursday, reaching $86.81. The stock had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a market cap of $89.95 billion, a P/E ratio of 52.17, a P/E/G ratio of 1.68 and a beta of 1.01. The firm has a fifty day simple moving average of $105.55 and a two-hundred day simple moving average of $138.83. ServiceNow has a 12-month low of $81.24 and a 12-month high of $211.48.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 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. ServiceNow's quarterly revenue was up 22.1% on a year-over-year basis. On average, equities analysts expect that ServiceNow will post 2.49 EPS for the current year.

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company'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 value of $151,755.00. Following the sale, the director owned 46,430 shares in the company, valued at $4,697,323.10. This represents a 3.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider directly owned 26,314 shares of the company's stock, valued at approximately $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 16,237 shares of company stock valued at $1,697,162 in the last quarter. 0.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC boosted its stake in shares of ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider's stock valued at $2,919,000 after acquiring an additional 30 shares during the last quarter. Sivia Capital Partners LLC raised its stake in ServiceNow by 4.2% during the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider's stock worth $861,000 after purchasing an additional 34 shares during the period. United Bank raised its position in shares of ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider's stock worth $1,562,000 after buying an additional 204 shares during the period. Riggs Asset Managment Co. Inc. lifted its stake in shares of ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider's stock valued at $1,976,000 after purchasing an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC lifted its position in ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider's stock valued at $931,000 after buying an additional 609 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

More 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.

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