ServiceNow (NYSE:NOW) Trading Down 2.7% - Should You Sell?

Key Points

• ServiceNow shares fell 2.7% on Tuesday, trading as low as $88.69 and closing at $89.03, below the prior close of $91.49. Trading volume was slightly above average.
• Despite the stock weakness, analysts remain generally positive: several firms reiterated or raised price targets, and the consensus rating is still Moderate Buy with an average target of $144.71.
• The company continues to show solid operational and strategic momentum, with recent earnings topping expectations, AI-focused partnership and product announcements, and expanded enterprise relationships such as FedEx.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) shares dropped 2.7% during trading on Tuesday . The company traded as low as $88.69 and last traded at $89.03. Approximately 22,143,551 shares were traded during trading, an increase of 3% from the average daily volume of 21,450,504 shares. The stock had previously closed at $91.49.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow announced Boomi as the launch partner for its Workflow Data Network Passport Program, a move designed to help customers activate data faster and accelerate AI-driven outcomes across the enterprise. Boomi and ServiceNow Partner to Power Data Activation Across the Enterprise
• Positive Sentiment: Analyst sentiment remains constructive, with Evercore ISI reportedly raising its price target to $150 from $140 and BMO Capital reiterating an Outperform rating, citing ServiceNow’s strong AI and platform positioning. ServiceNow (NOW) Price Target Raised as AI Growth Story Gains Strength
• Positive Sentiment: ServiceNow’s Knowledge 2026 announcements continue to emphasize AI governance, identity, and enterprise control capabilities, which could support future adoption by large customers. ServiceNow Seeks AI Control Role As Stock Struggles And Partnerships Grow
• Positive Sentiment: FedEx expanded its partnership with ServiceNow, reinforcing the company’s traction with major enterprise customers and its ability to deepen workflow automation relationships. FedEx expands ServiceNow partnership
• Neutral Sentiment: Several conference and commentary pieces around ServiceNow Knowledge 2026 are highlighting the company’s AI strategy, but these are more narrative updates than immediate stock catalysts. ServiceNow Knowledge 2026: FedEx digital chief unpacks agentic AI’s potential
• Negative Sentiment: ServiceNow reportedly plans to raise $4 billion in a bond sale, which could add leverage or raise investor focus on capital needs, even if the move supports growth initiatives. Software Firm ServiceNow Plans to Raise $4 Billion in Bond Sale

Analysts Set New Price Targets

NOW has been the subject of a number of research analyst reports. Wall Street Zen lowered shares of ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. FBN Securities cut their price objective on shares of ServiceNow from $160.00 to $120.00 in a research report on Thursday, April 23rd. Citigroup increased their price target on shares of ServiceNow from $154.00 to $158.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. KeyCorp set a $85.00 price target on shares of ServiceNow and gave the stock an "underweight" rating in a research report on Thursday, April 23rd. Finally, BMO Capital Markets dropped their price target on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, ServiceNow has an average rating of "Moderate Buy" and a consensus price target of $144.71.

ServiceNow Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The stock has a market capitalization of $91.79 billion, a P/E ratio of 53.06, a PEG ratio of 1.61 and a beta of 0.82. The company's 50 day simple moving average is $102.18 and its two-hundred day simple moving average is $131.38.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting the consensus estimate of $0.97. The firm had revenue of $3.77 billion for the quarter, compared to analysts' expectations of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company's quarterly revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.81 earnings per share. As a group, equities analysts expect that ServiceNow, Inc. will post 2.35 EPS for the current fiscal year.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 3,696 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $101.77, for a total value of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares of the company's stock, valued at $820,367.97. This trade represents a 31.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the completion of the sale, the director directly owned 46,430 shares of the company's stock, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 25,315 shares of company stock worth $2,510,682. 0.34% of the stock is currently owned by company insiders.

Institutional Trading of ServiceNow

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cohen Klingenstein LLC lifted its position in ServiceNow by 400.0% during the 4th quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock worth $1,532,000 after buying an additional 8,000 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in shares of ServiceNow by 385.9% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock valued at $398,202,000 after acquiring an additional 2,064,440 shares during the last quarter. Torray Investment Partners LLC increased its position in shares of ServiceNow by 390.5% in the fourth quarter. Torray Investment Partners LLC now owns 40,629 shares of the information technology services provider's stock valued at $6,224,000 after acquiring an additional 32,345 shares during the last quarter. Jennison Associates LLC increased its position in shares of ServiceNow by 280.1% in the fourth quarter. Jennison Associates LLC now owns 8,432,389 shares of the information technology services provider's stock valued at $1,291,758,000 after acquiring an additional 6,213,762 shares during the last quarter. Finally, Narwhal Capital Management increased its position in shares of ServiceNow by 763.5% in the fourth quarter. Narwhal Capital Management now owns 16,977 shares of the information technology services provider's stock valued at $2,601,000 after acquiring an additional 15,011 shares during the last quarter. 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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