ServiceNow (NYSE:NOW) Trading 8.9% Higher - Here's Why

Key Points

• ServiceNow shares jumped 8.9% on heavy trading volume after a wave of bullish news, including analyst support and a new partnership. The stock rose as high as $104.68 versus a previous close of $95.07.
• Bank of America reinstated ServiceNow at Buy with a $130 price target, citing the company as a beneficiary of the agentic AI era. Other commentary also suggested AI disruption fears may be overblown and could even boost demand for ServiceNow’s workflow automation tools.
• ServiceNow announced a global multi-year partnership with Experian to embed data and decisioning tools into its AI platform, potentially strengthening its enterprise offering and growth outlook. The stock also continues to have broad Wall Street support, with a consensus Moderate Buy rating and average target price of $141.89.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares shot up 8.9% during mid-day trading on Monday . The company traded as high as $104.68 and last traded at $103.5170. 50,420,333 shares changed hands during trading, an increase of 130% from the average session volume of 21,940,248 shares. The stock had previously closed at $95.07.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Bank of America reinstated ServiceNow (NOW) at Buy with a $130 price target, framing the company as a beneficiary of the agentic AI era and signaling meaningful upside from current levels. Benzinga article
• Positive Sentiment: ServiceNow announced a new global, multi-year partnership with Experian to embed data and decisioning tools into its AI platform, which could strengthen its enterprise workflow offering and support future growth. Yahoo Finance article
• Positive Sentiment: Analysts and market commentary suggested fears that AI will disrupt ServiceNow’s business are overstated, with some arguing AI could actually expand demand for the company’s workflow automation products. Investopedia article
• Positive Sentiment: Wall Street attention toward application-software names has improved, and ServiceNow is being viewed as a leader that could help signal a broader rebound in the software sector. MarketWatch article
• Neutral Sentiment: Some technical commentary still points to longer-term weakness and prior losses tied to “SaaSpocalypse” and AI-disruption concerns, but those worries appear secondary to today’s bullish analyst and partnership news. Invezz article

Analyst Ratings Changes

NOW has been the topic of several research analyst reports. HSBC lowered their target price on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Morgan Stanley decreased their price target on shares of ServiceNow from $210.00 to $180.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. BNP Paribas Exane raised shares of ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 price objective for the company in a report on Monday, March 16th. Weiss Ratings lowered ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, April 21st. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $121.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $141.89.

ServiceNow Price Performance

The firm has a market capitalization of $106.73 billion, a P/E ratio of 61.69, a price-to-earnings-growth ratio of 1.61 and a beta of 0.82. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a 50 day moving average price of $100.52 and a 200-day moving average price of $128.64.

ServiceNow (NYSE:NOW - Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting the consensus estimate of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The company's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.81 EPS. On average, analysts expect that ServiceNow, Inc. will post 2.35 earnings per share for the current year.

Insider Activity

In related news, insider Paul Fipps sold 3,696 shares of ServiceNow stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $101.77, for a total transaction of $376,141.92. Following the completion of the transaction, the insider directly owned 8,061 shares of the company's stock, valued at approximately $820,367.97. The trade was a 31.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the transaction, the insider owned 29,531 shares in the company, valued at $2,645,977.60. The trade was a 23.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 22,415 shares of company stock valued at $2,210,933 in the last 90 days. Company insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares in the last quarter. State Street Corp increased its holdings in ServiceNow by 406.6% during the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider's stock worth $7,337,280,000 after purchasing an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD raised its position in ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider's stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of ServiceNow by 404.8% in the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider's stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the period. Finally, Morgan Stanley increased its stake in shares of ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after buying an additional 17,514,679 shares during the period. 87.18% of the stock is currently owned by institutional investors.

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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