ServiceNow (NYSE:NOW) Shares Down 2.1% - Should You Sell?

Key Points

• ServiceNow shares fell 2.1% on Wednesday, trading as low as $86.01 after closing at $89.00 the previous day, with volume slightly above average.
• Despite the stock’s weakness, analysts remain broadly positive, with a consensus rating of “Moderate Buy” and a consensus price target of $144.71, though several firms have recently cut targets.
• Fundamentals and business momentum remain solid: the latest quarter matched EPS expectations, revenue rose 22.1% year over year, and recent partnerships with Boomi and FedEx support the company’s AI and automation growth narrative.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s share price was down 2.1% during trading on Wednesday . The stock traded as low as $86.01 and last traded at $87.1140. Approximately 21,959,330 shares traded hands during trading, an increase of 2% from the average daily volume of 21,436,350 shares. The stock had previously closed at $89.00.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Boomi and ServiceNow launched a workflow-data partnership that supports the company’s AI and enterprise automation growth story. Boomi and ServiceNow Partner to Power Data Activation Across the Enterprise
• Positive Sentiment: Analysts remain constructive, with higher price targets and commentary pointing to stronger AI-related growth potential. ServiceNow (NOW) Price Target Raised as AI Growth Story Gains Strength
• Positive Sentiment: FedEx is expanding its ServiceNow partnership, signaling continued enterprise demand for the platform. FedEx expands ServiceNow partnership
• Neutral Sentiment: Coverage around Knowledge 2026 and agentic AI highlights product momentum, but with no clear immediate earnings impact. Orchestration Over Execution: ServiceNow And The AI Misclassification
• Neutral Sentiment: A small insider sale by Paul Fipps was disclosed under a pre-arranged trading plan, making it a limited signal for investors. SEC insider filing for Paul Fipps
• Negative Sentiment: ServiceNow’s planned $4 billion bond sale may weigh on sentiment because it introduces financing and leverage concerns. Software Firm ServiceNow Plans to Raise $4 Billion in Bond Sale

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Wolfe Research set a $125.00 price target on ServiceNow in a report on Thursday, April 23rd. Royal Bank Of Canada reissued an "outperform" rating and set a $121.00 price objective on shares of ServiceNow in a report on Tuesday, May 5th. JPMorgan Chase & Co. lowered their target price on shares of ServiceNow from $195.00 to $145.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Weiss Ratings lowered shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, April 21st. Finally, Canaccord Genuity Group decreased their price target on shares of ServiceNow from $200.00 to $145.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus price target of $144.71.

ServiceNow Price Performance

The firm has a market capitalization of $89.81 billion, a P/E ratio of 51.92, a PEG ratio of 1.62 and a beta of 0.82. The business's 50-day simple moving average is $101.80 and its 200 day simple moving average is $130.69. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts' consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same period in the previous year, the business posted $0.81 EPS. The business's quarterly revenue was up 22.1% on a year-over-year basis. Sell-side analysts forecast that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company's stock, valued at $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Paul Fipps sold 3,696 shares of the company's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the sale, the insider owned 8,061 shares of the company's stock, valued at $820,367.97. This represents a 31.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 25,315 shares of company stock worth $2,510,682. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On ServiceNow

A number of large investors have recently added to or reduced their stakes in NOW. NewEdge Wealth LLC raised its stake in shares of ServiceNow by 435.9% during the first quarter. NewEdge Wealth LLC now owns 328,172 shares of the information technology services provider's stock valued at $34,310,000 after acquiring an additional 266,938 shares during the last quarter. First Citizens Bank & Trust Co. boosted its holdings in shares of ServiceNow by 48.0% during the first quarter. First Citizens Bank & Trust Co. now owns 3,263 shares of the information technology services provider's stock worth $341,000 after purchasing an additional 1,058 shares during the period. Alesco Advisors LLC An ESL Co bought a new stake in shares of ServiceNow in the first quarter worth about $713,000. Acumen Wealth Advisors LLC increased its holdings in ServiceNow by 14,043.6% during the 1st quarter. Acumen Wealth Advisors LLC now owns 7,779 shares of the information technology services provider's stock valued at $813,000 after purchasing an additional 7,724 shares during the period. Finally, First Trust Advisors LP increased its holdings in ServiceNow by 8.0% during the 1st quarter. First Trust Advisors LP now owns 878,021 shares of the information technology services provider's stock valued at $91,797,000 after purchasing an additional 65,405 shares during the period. Institutional investors own 87.18% of the company's stock.

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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