ServiceNow (NYSE:NOW) Stock Price Up 7.4% Following Analyst Upgrade

Key Points

• ServiceNow shares rose 7.4% after JPMorgan lifted its price target from $145 to $150 and kept an overweight rating. Trading volume also jumped above average, reflecting strong investor reaction.
• The stock’s move came after better-than-expected quarterly results, with EPS of $0.90 and revenue of $3.99 billion, both topping estimates. Subscription revenue increased 24.5% year over year.
• Management also raised its full-year subscription revenue outlook, citing continued demand for its AI-powered workflow products. Analysts broadly remain positive, with the consensus rating still at “Moderate Buy.”

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares traded up 7.4% on Friday after JPMorgan Chase & Co. raised their price target on the stock from $145.00 to $150.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. ServiceNow traded as high as $98.93 and last traded at $98.7710. 29,481,701 shares were traded during mid-day trading, an increase of 23% from the average daily volume of 23,906,777 shares. The stock had previously closed at $91.94.

Other equities analysts also recently issued reports about the company. Canaccord Genuity Group reduced their price target on ServiceNow from $200.00 to $145.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Argus dropped their target price on ServiceNow from $180.00 to $134.00 and set a "buy" rating on the stock in a research note on Friday, April 24th. Jefferies Financial Group reaffirmed a "buy" rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a research report on Thursday. Cantor Fitzgerald increased their price target on ServiceNow from $122.00 to $141.00 and gave the company an "overweight" rating in a research note on Monday. Finally, Citigroup reissued a "market outperform" rating on shares of ServiceNow in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $143.39.

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Insider Transactions at ServiceNow

In related news, Director Anita M. Sands sold 16,445 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares in the company, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company's stock, valued at approximately $1,189,212.72. This represents a 7.99% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 19,144 shares of company stock worth $1,730,097. Company insiders own 0.34% of the company's stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow beat quarterly expectations, with EPS of $0.90 and revenue of $3.99 billion, both ahead of estimates, while subscription revenue rose 24.5% year over year. ServiceNow Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year subscription revenue outlook, signaling management sees continued demand for its AI-powered workflow products. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: ServiceNow said AI contract value topped $1 billion, reinforcing the idea that its AI business is becoming a meaningful growth driver rather than a threat. ServiceNow AI Contract Value Crosses $1 Billion Milestone, Stock Soars
• Positive Sentiment: Several analysts lifted targets or reiterated bullish ratings after the report, suggesting Wall Street sees more upside even after the recent rebound. Analysts Increase Forecasts After Better-Than-Expected Q2 Earnings
• Neutral Sentiment: New partnerships and deployments, including work with government customers, Experian, Leidos, TeamViewer, and Exclusive Networks, add to the long-term growth story but are less likely to move the stock immediately. ServiceNow accelerates AI-powered government reinvention across nearly all 50 U.S. states with new customer wins
• Neutral Sentiment: Ongoing debate around insider selling and mixed institutional positioning may temper enthusiasm, but these signals are secondary to the earnings-driven move. ServiceNow Stock (NOW) Opinions on AI Disruption Fears
• Negative Sentiment: The main overhang is the market’s concern that AI could eventually reduce demand for traditional software and workflow licenses, which is why the stock has been volatile despite strong results. AI Bear Narrative Under Pressure, Says Analyst About ServiceNow Stock

Institutional Investors Weigh In On ServiceNow

A number of large investors have recently bought and sold shares of NOW. Covenant Asset Management LLC boosted its position in ServiceNow by 169.2% during the fourth quarter. Covenant Asset Management LLC now owns 20,863 shares of the information technology services provider's stock worth $3,196,000 after purchasing an additional 13,114 shares in the last quarter. Norges Bank purchased a new stake in shares of ServiceNow in the fourth quarter valued at approximately $2,020,992,000. World Investment Advisors raised its stake in shares of ServiceNow by 411.7% during the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock worth $7,346,000 after buying an additional 38,583 shares during the period. Cohen Klingenstein LLC lifted its position in shares of ServiceNow by 400.0% during the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock valued at $1,532,000 after buying an additional 8,000 shares in the last quarter. Finally, Moors & Cabot Inc. lifted its position in shares of ServiceNow by 387.7% during the 4th quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider's stock valued at $6,990,000 after buying an additional 36,274 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company's stock.

ServiceNow Stock Up 7.4%

The stock has a market cap of $101.83 billion, a price-to-earnings ratio of 61.73, a PEG ratio of 1.60 and a beta of 0.96. The business's 50 day moving average is $104.70 and its 200-day moving average is $107.77. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.04. The company had revenue of $3.99 billion during the quarter, compared to analysts' expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.63%. The firm's revenue for the quarter was up 24.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.81 earnings per share. On average, sell-side analysts predict that ServiceNow, Inc. will post 2.33 EPS for the current fiscal year.

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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