ServiceNow (NYSE:NOW) Trading Up 2.4% - Here's What Happened

Key Points

• ServiceNow shares rose 2.4% on Tuesday, reaching an intraday high of $113.79 before settling around $110.57. Trading volume was below average, with about 21.5 million shares changing hands.
• Recent coverage has been more constructive on ServiceNow’s AI growth story, with Guggenheim and other commentators pushing back on bearish “software extinction” concerns. New government and defense AI partnerships are also helping broaden the company’s opportunity set beyond workflow automation.
• Wall Street remains generally positive on the stock, with a consensus “Moderate Buy” rating and an average price target of $141.68. The company also posted solid recent results, including 22.1% year-over-year revenue growth and earnings that matched estimates.

Shares of ServiceNow, Inc. (NYSE:NOW - Get Free Report) shot up 2.4% during trading on Tuesday . The company traded as high as $113.79 and last traded at $110.5730. Approximately 21,485,854 shares were traded during mid-day trading, a decline of 11% from the average session volume of 24,056,816 shares. The stock had previously closed at $107.93.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is seeing renewed buying interest after Guggenheim pushed back on overly bearish “software extinction” worries, helping support a more constructive view of the company’s AI-driven growth story. Why ServiceNow Stock Is Climbing After Guggenheim Dismisses Software 'Extinction' Valuation
• Positive Sentiment: New government and defense AI partnerships are widening ServiceNow’s reach beyond standard workflow automation, including work tied to biosurveillance and state health systems, which could boost investor confidence in its long-term AI monetization. ServiceNow (NOW) Lands Defense And State AI Partnerships That Reach Beyond Workflows
• Positive Sentiment: Analysts and commentators are increasingly arguing that fears AI would disrupt ServiceNow’s software model look overstated, with recent coverage highlighting that the company’s reported numbers continue to hold up. ServiceNow Was the SaaS Stock AI Was Supposed to Kill. Its Numbers Say Otherwise.
• Neutral Sentiment: Some recent coverage focuses on valuation, asking whether ServiceNow is still worth a premium multiple after mixed returns, suggesting investors are still debating how much upside is already priced in. Is NOW PSE: NOW Still Worth A Premium P/E On Mixed Returns?
• Neutral Sentiment: Articles comparing ServiceNow with peers like UiPath and broader “contrarian alert” pieces are keeping the stock in the conversation, but they do not point to a clearly new catalyst on their own. Should You Buy ServiceNow Stock Instead of UiPath Stock?

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Sanford C. Bernstein reissued an "outperform" rating on shares of ServiceNow in a report on Monday, June 29th. Benchmark upped their price target on shares of ServiceNow from $125.00 to $130.00 and gave the company a "buy" rating in a research report on Monday, June 15th. Needham & Company LLC reiterated a "buy" rating and set a $115.00 target price on shares of ServiceNow in a research report on Tuesday, May 5th. Citic Securities lowered their price objective on ServiceNow from $168.00 to $140.00 and set a "buy" rating on the stock in a research report on Thursday, May 21st. Finally, BMO Capital Markets reduced their target price on shares of ServiceNow from $120.00 to $115.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $141.68.

ServiceNow Stock Up 2.4%

The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The firm has a market capitalization of $114.00 billion, a PE ratio of 65.90, a PEG ratio of 1.77 and a beta of 0.96. The company has a fifty day moving average price of $100.53 and a 200-day moving average price of $112.60.

ServiceNow (NYSE:NOW - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm's revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the business posted $0.81 earnings per share. As a group, analysts expect that ServiceNow, Inc. will post 2.34 earnings per share for the current year.

Insiders Place Their Bets

In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the transaction, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. This represents a 7.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, insider Jacqueline P. Canney sold 8,927 shares of ServiceNow stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the completion of the transaction, the insider owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 in the last three months. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Several hedge funds have recently made changes to their positions in NOW. Norges Bank acquired a new stake in shares of ServiceNow in the 4th quarter valued at approximately $2,020,992,000. World Investment Advisors lifted its holdings in ServiceNow by 411.7% during the 4th quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider's stock valued at $7,346,000 after purchasing an additional 38,583 shares during the last quarter. Cohen Klingenstein LLC boosted its position in ServiceNow by 400.0% during the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider's stock worth $1,532,000 after purchasing an additional 8,000 shares during the period. Moors & Cabot Inc. grew its stake in ServiceNow by 387.7% in 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 during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in ServiceNow by 385.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider's stock worth $398,202,000 after purchasing an additional 2,064,440 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

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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