ServiceNow's (NOW) "Buy" Rating Reiterated at DA Davidson

Key Points

• DA Davidson reiterated a "Buy" rating with a $190 price target, implying about a 108% upside from current levels.
• Shares traded around $91.29 mid-day; MarketBeat shows a consensus of "Moderate Buy" with an average analyst target of $146.35 (2 Strong Buy, 34 Buy, 6 Hold, 1 Sell).
• ServiceNow reported revenue of $3.77B (+22.1% YoY) with EPS of $0.97 and is rolling out AI partnerships and products (NVIDIA, Microsoft, Otto, AI Control Tower) that analysts say could drive monetization and renewed street conviction.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at DA Davidson in a note issued to investors on Tuesday,Benzinga reports. They currently have a $190.00 price target on the information technology services provider's stock. DA Davidson's price objective would suggest a potential upside of 108.13% from the company's current price.

Several other research firms have also commented on NOW. The Goldman Sachs Group decreased their price target on shares of ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. Macquarie Infrastructure decreased their price target on shares of ServiceNow from $172.00 to $140.00 and set a "neutral" rating for the company in a report on Thursday, January 29th. Citizens Jmp reiterated a "market outperform" rating and issued a $157.00 price objective on shares of ServiceNow in a research report on Tuesday. Needham & Company LLC reissued a "buy" rating and set a $115.00 target price on shares of ServiceNow in a research note on Tuesday. Finally, Capital One Financial boosted their target price on shares of ServiceNow from $105.00 to $120.00 and gave the company an "overweight" rating in a research note on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and an average target price of $146.35.

ServiceNow Stock Down 0.7%

NOW stock traded down $0.68 during mid-day trading on Tuesday, hitting $91.29. 14,620,833 shares of the company were exchanged, compared to its average volume of 21,206,092. The company has a market capitalization of $94.12 billion, a PE ratio of 54.50, 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. ServiceNow has a twelve month low of $81.24 and a twelve month high of $211.48. The firm has a fifty day simple moving average of $103.45 and a 200 day simple moving average of $134.58.

ServiceNow (NYSE:NOW - Get Free Report) last announced 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 company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm's revenue for the quarter was up 22.1% compared to the same quarter last year. During the same period last year, the business earned $0.81 EPS. On average, research analysts forecast that ServiceNow will post 2.35 earnings per share for the current fiscal year.

Insider Activity

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the business'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 sale, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. The trade was a 23.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the business's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the sale, the insider owned 26,314 shares in the company, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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

Hedge funds and other institutional investors have recently made changes to their positions in the stock. IAG Wealth Partners LLC raised its position in shares of ServiceNow by 200.0% during the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after buying an additional 18 shares in the last quarter. Bogart Wealth LLC raised its position in shares of ServiceNow by 93.8% during the 3rd quarter. Bogart Wealth LLC now owns 31 shares of the information technology services provider's stock worth $29,000 after buying an additional 15 shares in the last quarter. Wealth Watch Advisors INC bought a new stake in shares of ServiceNow during the 3rd quarter worth about $29,000. Texas Capital Bancshares Inc TX bought a new stake in shares of ServiceNow during the 3rd quarter worth about $37,000. Finally, Ameriflex Group Inc. raised its position in shares of ServiceNow by 187.5% during the 3rd quarter. Ameriflex Group Inc. now owns 46 shares of the information technology services provider's stock worth $42,000 after buying an additional 30 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Major AI partnerships and governance push — ServiceNow expanded collaborations with NVIDIA (agentic AI governance to data centers) and Microsoft (deeper AI agent governance), strengthening its positioning as an enterprise “AI control tower.” These tie directly to corporate demand for secure, governed AI at scale and help address a top enterprise buying criterion. ServiceNow extends agentic AI governance from desktops to data centers with NVIDIA
• Positive Sentiment: Enterprise customer and supply-chain traction — ServiceNow and FedEx announced integrated AI-powered supply-chain workflows (Source-to-Pay and new SCM flows), a direct route to incremental ARR via embedded logistics intelligence and workflow automation. FedEx and ServiceNow expand strategic collaboration with new AI-powered supply chain solution
• Positive Sentiment: Broader product launches that drive monetization — ServiceNow unveiled Otto (a unified enterprise AI experience), expanded its AI Control Tower, launched Autonomous Security & Risk (integrating Armis and Veza) and broadened Autonomous Workforce specialists — features aimed at increasing seat/usage-based monetization and addressing security/governance objections. ServiceNow expands AI Control Tower to discover, observe, govern, secure, and measure AI deployed across any system in the enterprise
• Positive Sentiment: Analyst support picking up — Multiple firms raised targets or reaffirmed Buy/Outperform after the investor day (Evercore to $150, Capital One to $120, Barclays raised its target), reflecting renewed street conviction in ServiceNow’s AI monetization path. Evercore adjusts price target on ServiceNow to $150
• Neutral Sentiment: Ecosystem and partner integrations expand reach but are incremental — announcements with Lenovo, Cloudera (zero-copy connector), Ataccama and third-party ISVs broaden the platform ecosystem and reduce friction to adoption; might accelerate enterprise uptake but are longer‑lead revenue drivers. ServiceNow and Lenovo help organizations reduce costs, accelerate productivity, and improve governance with AI-native operations Cloudera Launches Workflow Data Fabric Zero Copy Connector for ServiceNow
• Negative Sentiment: Analyst trimming and execution concerns — Wolfe Research cut its price target citing conservative guidance tied to delayed on‑prem deals in the Middle East; that and broader “AI displacement” or “SaaSocalypse” fears have pressured the multiple and create risk to sentiment. Wolfe Research Lowers PT on ServiceNow (NOW) 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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