ServiceNow (NYSE:NOW) Stock Price Up 2.5% - Still a Buy?

Key Points

• ServiceNow announced a $5 billion buyback and a $2 billion accelerated share repurchase, a management move that supports near‑term demand for the stock.
• Wall Street is broadly positive with a consensus rating of "Moderate Buy" and a consensus price target of $193 (majority of analysts rate it Buy/Strong Buy: 3 Strong Buy, 33 Buy, 6 Hold, 2 Sell).
• Operationally ServiceNow beat Q4 revenue and EPS (revenue up 20.7% YoY) but guidance points to slower subscription growth and sector AI‑automation fears plus recent insider selling, which could keep shares volatile; the stock jumped ~2.5% to about $106 on higher volume and trades at a P/E of ~63.8 with a market cap near $111B.

ServiceNow, Inc. (NYSE:NOW - Get Free Report)'s share price shot up 2.5% on Tuesday . The stock traded as high as $108.98 and last traded at $106.48. 21,809,621 shares were traded during mid-day trading, an increase of 11% from the average session volume of 19,629,223 shares. The stock had previously closed at $103.87.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Large buyback and accelerated repurchase: ServiceNow announced a $5B buyback authorization and a $2B accelerated share repurchase (ASR), signaling management confidence and supporting near‑term demand for shares. 3 Massive Buybacks That Map the Market’s Mood in 2026
• Positive Sentiment: Wall Street and contrarian outlets see deep upside: Several analyst notes and buy‑the‑dip pieces argue the selloff has overshot fundamentals and point to high consensus price targets vs. current levels, attracting bargain hunters. ServiceNow's Massive Fall: Analysts Eye +70% Gains Amid AI Risks
• Positive Sentiment: Strategists call the pullback a buying opportunity: JP Morgan and other strategists framed recent AI‑driven weakness across software as an entry point into high‑quality names like ServiceNow. That macro narrative is lifting demand. AI disruption fears create buying chance in US software stocks, strategists say
• Positive Sentiment: Celebrity endorsement / TV momentum: Jim Cramer publicly said ServiceNow “is starting to look good,” which can boost retail demand and intraday momentum. Jim Cramer Says ServiceNow Is “Starting to Look Good”
• Neutral Sentiment: Strong fundamentals but slowing growth: Q4 beat on revenue and EPS and management expects ~20% subscription growth in 2026, yet guidance implies deceleration — a mixed read that tempers but doesn’t erase optimism. ServiceNow Stock (NOW) Opinions on Earnings Selloff and AI Prospects
• Neutral Sentiment: AI partnerships and bookings ramp: ServiceNow is deepening AI ties (e.g., Anthropic/OpenAI integrations) with rising AI‑agent ACV, which supports long‑term opportunity but also shifts business mix and economics. ServiceNow Deepens Anthropic AI Push As Shares Slide And Buybacks Rise
• Negative Sentiment: Sector AI‑automation fears remain a headwind: New AI tools (e.g., Claude Cowork) and broader headlines have triggered indiscriminate selling across software, pressuring ServiceNow despite solid results. Continued AI scares could keep shares volatile. Salesforce and ServiceNow Fall as AI Automation Fears Hit Software Sector
• Negative Sentiment: Momentum selling, social chatter and insider sales amplify downside risk: Recent post‑earnings selling, social skepticism about sustainable growth and reported insider selling add psychological pressure and can prolong the drawdown. ServiceNow Stock (NOW) Opinions on Earnings Selloff and AI Prospects

Wall Street Analyst Weigh In

NOW has been the subject of a number of recent analyst reports. Mizuho dropped their price objective on ServiceNow from $210.00 to $190.00 and set an "outperform" rating for the company in a research note on Wednesday, January 21st. Argus upgraded ServiceNow to a "strong-buy" rating in a research note on Wednesday, February 4th. The Goldman Sachs Group set a $216.00 price objective on shares of ServiceNow in a research report on Monday, February 2nd. Piper Sandler reaffirmed an "overweight" rating on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Wall Street Zen raised ServiceNow from a "hold" rating to a "buy" rating in a research report on Saturday, December 27th. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $193.01.

ServiceNow Trading Up 2.5%

The stock has a 50-day simple moving average of $143.19 and a 200 day simple moving average of $166.96. The company has a market cap of $111.38 billion, a price-to-earnings ratio of 63.84, a PEG ratio of 1.71 and a beta of 0.98. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.03. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business had revenue of $3.57 billion during the quarter, compared to analysts' expectations of $3.53 billion. During the same quarter in the previous year, the firm posted $0.73 EPS. The company's revenue for the quarter was up 20.7% on a year-over-year basis. As a group, equities research analysts predict that ServiceNow, Inc. will post 8.93 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Gina Mastantuono sold 2,075 shares of the company's stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $170.00, for a total value of $352,750.00. Following the transaction, the chief financial officer directly owned 61,140 shares in the company, valued at approximately $10,393,800. This represents a 3.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jacqueline P. Canney sold 470 shares of the firm's stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total value of $77,745.52. Following the sale, the insider directly owned 15,135 shares of the company's stock, valued at approximately $2,503,571.16. This trade represents a 3.01% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 15,310 shares of company stock worth $2,533,585. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Kilter Group LLC acquired a new position in ServiceNow during the 2nd quarter worth about $25,000. IAG Wealth Partners LLC boosted its stake in shares of ServiceNow by 200.0% in the third 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 period. Total Investment Management Inc. acquired a new position in shares of ServiceNow in the second quarter valued at approximately $31,000. LGT Financial Advisors LLC acquired a new position in shares of ServiceNow in the second quarter valued at approximately $32,000. Finally, Bogart Wealth LLC increased its stake in ServiceNow by 93.8% during the 3rd quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider's stock worth $29,000 after buying an additional 15 shares during the period. Institutional investors and hedge funds 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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