ServiceNow (NYSE:NOW) Trading 7.2% Higher - Still a Buy?

Key Points

• ServiceNow shares jumped 7.2% on Wednesday to about $94.11 with ~25.6M shares traded (roughly 29% above average), following a prior close of $87.79.
• Positive catalysts include strategic AI and security integrations—notably alliances with Qlik and TrustCloud and partner momentum (Cadena)—which aim to deepen ServiceNow’s role as an enterprise AI/workflow platform and increase customer stickiness.
• Countering the upbeat news, multiple firms cut price targets (Citi to $177, BMO to $120, Oppenheimer to $130), signaling near‑term valuation pressure despite a consensus "Moderate Buy" and an average target near $179.85; the company still shows strong revenue growth but a high PE (~56x).

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares rose 7.2% on Wednesday . The stock traded as high as $94.83 and last traded at $94.1080. Approximately 25,630,323 shares traded hands during mid-day trading, an increase of 29% from the average daily volume of 19,801,787 shares. The stock had previously closed at $87.79.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Strategic product integrations aim to deepen ServiceNow’s enterprise AI positioning — a new alliance with Qlik to bring governed analytics into ServiceNow workflows could make the platform more central to customers’ AI operations. ServiceNow Qlik Alliance Aims To Make NOW The Enterprise AI Nerve Center
• Positive Sentiment: Third‑party integrations expand product utility in security and risk — TrustCloud announced AI‑driven cyber risk automation integration with ServiceNow, which could increase stickiness for security and GRC customers. TrustCloud Brings AI-Driven Cyber Risk Automation Directly Into ServiceNow
• Positive Sentiment: Channel momentum and partner recognition continue — Cadena was named ServiceNow’s top SAM partner for 2026 for AI‑augmented delivery, supporting the company’s ecosystem growth. Cadena Co. Named #1 ServiceNow SAM Partner for 2026, Recognized for AI-Augmented Delivery
• Neutral Sentiment: Customer research shows leaders are investing in AI but customers still report a gap in CX empathy — this highlights both opportunity and execution risk for ServiceNow’s CX initiatives. 48% of Indian Customers Cite Lack of Empathy in CX, But Only 19% of Leaders Address It with AI - Reports ServiceNow
• Neutral Sentiment: Industry commentary and rankings keep NOW on investors’ radar ahead of earnings — some firms (e.g., Mizuho) still list ServiceNow among top software names to watch. Cloudflare, ServiceNow, Atlassian rank as Mizuho's top software stocks ahead of earnings
• Negative Sentiment: Analyst price‑target cuts are weighing on the stock — Citi slashed its target to $177 while keeping a positive rating, signaling increased concern about growth/valuation. Citi Slashes ServiceNow's Target to $177: Is the AI Workflow Giant Losing Its Edge?
• Negative Sentiment: Multiple firms lowered targets the same day — BMO cut its target to $120 (from $170) and Oppenheimer trimmed its target to $130 while still noting AI opportunity; the cluster of cuts signals near‑term valuation pressure. BMO Capital Adjusts Price Target on ServiceNow to $120 from $170, Maintains Outperform Rating ServiceNow (NOW) Stock Plunges 43% in 2026 — Time to Buy the Selloff?
• Negative Sentiment: Bearish reports and sell‑side caution continue — RBC issued a pessimistic forecast and commentary like Seeking Alpha’s “Cheap Enough To Avoid” piece add to negative sentiment, amplifying downside risk until earnings or clearer AI monetization evidence. Royal Bank Of Canada Issues Pessimistic Forecast for ServiceNow NYSE: NOW Stock Price ServiceNow: Cheap Enough To Avoid

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Evercore reaffirmed an "outperform" rating and set a $175.00 price target (down from $225.00) on shares of ServiceNow in a research report on Thursday, January 29th. KeyCorp dropped their target price on ServiceNow from $155.00 to $115.00 and set an "underweight" rating on the stock in a research note on Thursday, January 29th. Canaccord Genuity Group set a $200.00 target price on ServiceNow in a research report on Thursday, January 29th. DA Davidson reiterated a "buy" rating and issued a $220.00 price target on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Guggenheim raised ServiceNow from a "sell" rating to a "neutral" rating in a report on Tuesday, December 16th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and a consensus target price of $179.85.

ServiceNow Price Performance

The company has a market cap of $97.51 billion, a PE ratio of 56.42, a price-to-earnings-growth ratio of 1.49 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The stock has a 50 day moving average of $106.27 and a 200-day moving average of $142.12.

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

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, February 12th. The shares were 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction 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 trade represents a 5.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,237 shares of company stock valued at $1,697,162 in the last ninety days. Insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors and hedge funds have recently modified their holdings of the stock. Brady Martz Wealth Solutions LLC grew its holdings in ServiceNow by 29.5% during the first quarter. Brady Martz Wealth Solutions LLC now owns 7,613 shares of the information technology services provider's stock worth $796,000 after acquiring an additional 1,734 shares during the period. J. Derek Lewis & Associates Inc. acquired a new position in ServiceNow in the fourth quarter valued at approximately $238,000. Stance Capital LLC boosted its position in ServiceNow by 456.7% in the 4th quarter. Stance Capital LLC now owns 8,050 shares of the information technology services provider's stock worth $1,233,000 after purchasing an additional 6,604 shares in the last quarter. Rockefeller Capital Management L.P. boosted its position in ServiceNow by 649.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 515,470 shares of the information technology services provider's stock worth $78,965,000 after purchasing an additional 446,667 shares in the last quarter. Finally, Bank of New Hampshire grew its stake in shares of ServiceNow by 401.9% during the 4th quarter. Bank of New Hampshire now owns 9,275 shares of the information technology services provider's stock worth $1,421,000 after purchasing an additional 7,427 shares during the period. Institutional investors and hedge funds 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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