ServiceNow Target of Unusually High Options Trading (NYSE:NOW)

Key Points

• Traders bought 136,185 call options on ServiceNow — a 24% increase versus the average — as the stock rose to $93.65 on above‑average volume, signaling heightened bullish options activity.
• ServiceNow reported Q1 EPS of $0.97 (in line) and revenue of $3.77B, up 22.1% year‑over‑year, while management set a long‑term target of >$30B in subscription revenue by 2030 and unveiled AI partnerships (e.g., NVIDIA) that have driven analyst optimism.
• Sentiment is mixed: Bernstein and others raised targets (one to $236) but the consensus price target is $144.71 and several firms trimmed estimates, while insiders sold ~25,164 shares over the past 90 days, reflecting valuation and execution concerns.

ServiceNow, Inc. (NYSE:NOW - Get Free Report) was the recipient of unusually large options trading on Thursday. Stock traders bought 136,185 call options on the stock. This is an increase of 24% compared to the average daily volume of 109,618 call options.

ServiceNow Stock Performance

Shares of ServiceNow stock traded up $4.60 on Thursday, hitting $93.65. The stock had a trading volume of 27,767,520 shares, compared to its average volume of 21,399,691. ServiceNow has a 52-week low of $81.24 and a 52-week high of $211.48. 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 stock has a market cap of $96.55 billion, a price-to-earnings ratio of 55.81, a P/E/G ratio of 1.63 and a beta of 0.82. The company's 50 day moving average price is $102.97 and its 200 day moving average price is $133.33.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. The firm had revenue of $3.77 billion during 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 firm's revenue was up 22.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.81 EPS. On average, research analysts anticipate that ServiceNow will post 2.35 EPS for the current year.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company set a long-term goal of $30B+ in subscription revenue by 2030 and reiterated ~20% annual growth to 2030, giving investors a clear large‑market growth roadmap that underpins the rally. Why ServiceNow Shares Are Surging On Thursday?
• Positive Sentiment: Analysts reacted favorably: Bernstein raised its price target to $236 and multiple firms reiterated Buy/Outperform ratings; Capital One also bumped its target — supporting bullish analyst momentum. Bernstein Hikes ServiceNow Price Target to $236
• Positive Sentiment: Product and partner rollout at Knowledge 2026 (Project Arc with NVIDIA, ServiceNow Otto, expanded AI Control Tower, AWS Marketplace traction) positions ServiceNow as a commercial hub for enterprise “agentic” AI — potential for new revenue streams and higher platform stickiness. ServiceNow And NVIDIA Project Arc Puts AI Agents At Center Stage
• Positive Sentiment: Multiple ecosystem integrations (Accenture, NiCE, Outreach, RightCrowd, and others) and a milestone of $1B in AWS Marketplace transactions underscore accelerating commercial adoption and partner-led go‑to‑market expansion. ServiceNow, Accenture partner to deliver agentic AI at enterprise scale
• Neutral Sentiment: Peer moves in the sector (e.g., Snowflake rally) are lifting enterprise software stocks broadly; ServiceNow is benefiting from sector momentum but is not the top gainer today. Snowflake Is Up 9% Today: Is It Outperforming Other Cloud Stocks Like ServiceNow?
• Neutral Sentiment: Market commentary notes ServiceNow is still working through a recent reset in valuation despite the AI momentum — implies upside is tied to execution on margins, FCF and subscription monetization. ServiceNow (NOW) Valuation Check After Knowledge 2026 AI Partnerships And Product Launches
• Negative Sentiment: ServiceNow’s new “metered layer” and moves to charge external AI agents (a pay‑to‑play approach) could create customer friction or implementation complexity as per-seat pricing models change — a potential near‑term headwind even if it becomes a long‑term revenue lever. ServiceNow, SAP and Workday Make AI Agents Pay to Play

Analyst Ratings Changes

Several research analysts have recently issued reports on NOW shares. FBN Securities lowered their price objective on ServiceNow from $160.00 to $120.00 in a research report on Thursday, April 23rd. Citizens Jmp reaffirmed a "market outperform" rating and set a $157.00 price objective on shares of ServiceNow in a research report on Tuesday. Deutsche Bank Aktiengesellschaft lowered their price objective on ServiceNow from $180.00 to $135.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. JPMorgan Chase & Co. reduced their target price on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a report on Thursday, April 23rd. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $121.00 target price on shares of ServiceNow in a report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, ServiceNow presently has an average rating of "Moderate Buy" and a consensus price target of $144.71.

Insider Buying and Selling

In other news, insider Paul Fipps sold 9,641 shares of the company's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total transaction of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares of the company's stock, valued at approximately $1,245,419.01. This represents a 45.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Jacqueline P. Canney sold 8,927 shares of the company's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company's stock, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 25,164 shares of company stock valued at $2,497,021. Company insiders own 0.34% of the company's stock.

Institutional Trading of ServiceNow

Several institutional investors and hedge funds have recently added to or reduced their stakes in NOW. Vanguard Group Inc. raised its stake in ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider's stock valued at $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp raised its stake 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 valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD increased 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 worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Geode Capital Management LLC increased its position in ServiceNow by 404.8% during 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 purchasing an additional 18,854,775 shares during the period. Finally, Morgan Stanley increased its position in ServiceNow by 335.6% during the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock worth $3,482,543,000 after purchasing an additional 17,514,679 shares during the period. 87.18% of the stock is owned by hedge funds and other 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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