ServiceNow (NYSE:NOW) Shares Up 9.1% - What's Next?

Key Points

• ServiceNow shares jumped 9.1% in heavy trading, with volume far above average, as investors piled into software stocks.
• Sentiment got a boost from AI-related optimism, especially comments from Nvidia’s Jensen Huang suggesting AI may increase software demand rather than hurt it, along with interest in ServiceNow’s “agentic AI” positioning and AWS collaboration.
• Recent fundamentals were also supportive: ServiceNow matched earnings expectations and slightly beat revenue estimates last quarter, while analysts still hold a Moderate Buy consensus with an average price target of $141.85 despite some target cuts.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shot up 9.1% during mid-day trading on Monday . The stock traded as high as $139.20 and last traded at $135.6990. 67,787,679 shares traded hands during trading, an increase of 188% from the average session volume of 23,565,865 shares. The stock had previously closed at $124.37.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Software stocks, including ServiceNow, are moving higher after Nvidia’s Jensen Huang said AI is more likely to boost software demand than threaten it, easing a key investor concern and sparking sector-wide buying. ServiceNow, Adobe stocks jump as Nvidia's new AI chip sparks software rally
• Positive Sentiment: Commentary tied to ServiceNow’s AI positioning and “agentic AI” exposure is drawing fresh investor attention, reinforcing the stock’s momentum as a potential winner in the next phase of enterprise AI adoption. What Exactly Is Agentic AI, and Why Are Some Stocks Blowing Up Because of It? (NOW)
• Positive Sentiment: Investor optimism is also supported by ServiceNow’s recent quarterly results, which beat revenue expectations, and by reports of increased institutional interest, including a large stake boost from Kentucky Retirement Systems. ServiceNow (NOW) Stock: Is Now the Time to Buy After Strong Q1 Performance?
• Positive Sentiment: ServiceNow’s collaboration with AWS and expansion around governance for agentic AI is adding to the bullish long-term narrative that the company can benefit from enterprise AI spending. Here is Why ServiceNow (NOW) is One of the Best Future Tech Stocks According to Billionaires

Analysts Set New Price Targets

Several research firms have issued reports on NOW. Piper Sandler cut their price objective on ServiceNow from $200.00 to $140.00 and set an "overweight" rating on the stock in a report on Thursday, April 23rd. BNP Paribas Exane raised ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 target price on the stock in a research note on Monday, March 16th. BMO Capital Markets lowered their target price on ServiceNow from $120.00 to $115.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Weiss Ratings cut ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, April 21st. Finally, Morgan Stanley lowered their target price on ServiceNow from $210.00 to $180.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $141.85.

ServiceNow Trading Up 9.1%

The firm has a market cap of $139.91 billion, a P/E ratio of 80.87, a PEG ratio of 2.05 and a beta of 0.94. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The company has a 50 day moving average of $98.05 and a 200 day moving average of $123.39.

ServiceNow (NYSE:NOW - Get Free Report) last announced 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. The firm had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.81 earnings per share. Analysts predict that ServiceNow, Inc. will post 2.36 EPS for the current fiscal year.

Insider Buying and Selling

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the sale, the insider owned 29,531 shares of the company's stock, valued at $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the sale, the director directly owned 44,930 shares of the company's stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 28,071 shares of company stock worth $2,529,956 over the last ninety days. 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 the stock. Meridian Wealth Advisors LLC lifted its holdings in shares of ServiceNow by 2.2% during the third quarter. Meridian Wealth Advisors LLC now owns 552 shares of the information technology services provider's stock worth $508,000 after buying an additional 12 shares during the last quarter. Valley Brook Capital Group Inc. lifted its holdings in shares of ServiceNow by 2.1% during the third quarter. Valley Brook Capital Group Inc. now owns 634 shares of the information technology services provider's stock worth $583,000 after buying an additional 13 shares during the last quarter. Catalyst Financial Partners LLC lifted its holdings in shares of ServiceNow by 1.0% during the third quarter. Catalyst Financial Partners LLC now owns 1,270 shares of the information technology services provider's stock worth $1,169,000 after buying an additional 13 shares during the last quarter. JT Stratford LLC lifted its holdings in shares of ServiceNow by 3.5% during the third quarter. JT Stratford LLC now owns 385 shares of the information technology services provider's stock worth $354,000 after buying an additional 13 shares during the last quarter. Finally, Abbot Financial Management Inc. lifted its holdings in shares of ServiceNow by 2.9% during the third quarter. Abbot Financial Management Inc. now owns 502 shares of the information technology services provider's stock worth $462,000 after buying an additional 14 shares during the last quarter. Institutional investors own 87.18% of the company's stock.

About ServiceNow

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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