ServiceNow's (NOW) "Outperform" Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “outperform” rating on ServiceNow and kept a $130 price target, implying about 37.7% upside from the current share price.
• Other analysts remain broadly bullish, with several firms reaffirming buy/overweight ratings and ServiceNow’s overall consensus standing at “Moderate Buy” with an average price target of $142.80.
• ServiceNow shares were down 1.1% to $94.40 in Thursday trading, even after the company recently beat quarterly earnings and revenue estimates.

ServiceNow (NYSE:NOW - Get Free Report)'s stock had its "outperform" rating reiterated by research analysts at Royal Bank Of Canada in a research note issued to investors on Thursday,Benzinga reports. They currently have a $130.00 price objective on the information technology services provider's stock. Royal Bank Of Canada's price target points to a potential upside of 37.71% from the company's current price.

Several other brokerages also recently weighed in on NOW. Piper Sandler reiterated an "overweight" rating and issued a $140.00 price target on shares of ServiceNow in a report on Thursday. Benchmark reaffirmed a "buy" rating on shares of ServiceNow in a report on Friday, July 17th. Citigroup reaffirmed a "market outperform" rating on shares of ServiceNow in a research note on Thursday. HSBC lowered their price target on shares of ServiceNow from $226.00 to $171.00 and set a "buy" rating on the stock in a research report on Thursday, April 16th. Finally, JPMorgan Chase & Co. dropped their price target on ServiceNow from $195.00 to $145.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and an average price target of $142.80.

ServiceNow Trading Down 1.1%

NOW stock traded down $1.06 during trading on Thursday, reaching $94.40. The company had a trading volume of 27,300,878 shares, compared to its average volume of 23,718,629. ServiceNow has a 52 week low of $81.24 and a 52 week high of $210.20. 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 business has a 50 day moving average of $104.67 and a 200 day moving average of $108.16. The company has a market cap of $97.33 billion, a P/E ratio of 56.21, a PEG ratio of 1.71 and a beta of 0.96.

ServiceNow (NYSE:NOW - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The firm's revenue for the quarter was up 24.0% compared to the same quarter last year. As a group, sell-side analysts forecast that ServiceNow will post 2.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Paul Fipps sold 1,048 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total value of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares of the company's stock, valued at $1,189,212.72. This trade represents a 7.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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, Director Paul Edward Chamberlain sold 1,500 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director directly owned 44,930 shares of the company's stock, valued at $3,919,243.90. The trade was a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 28,071 shares of company stock valued at $2,529,956. Corporate insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased 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 purchasing an additional 81,752,460 shares in the last quarter. State Street Corp increased its stake in ServiceNow by 406.6% in the fourth 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 purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of ServiceNow by 371.0% in the fourth 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 in the last quarter. Geode Capital Management LLC boosted its stake in shares of 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 acquiring an additional 18,854,775 shares during the period. Finally, Morgan Stanley boosted its position in shares of ServiceNow by 335.6% in 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 acquiring an additional 17,514,679 shares during the period. 87.18% of the stock is owned by institutional investors and hedge funds.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow beat Q2 estimates, reporting earnings of $0.90 per share on revenue of $3.99 billion, both above consensus. ServiceNow Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year subscription revenue forecast again, helped by accelerating AI demand and stronger enterprise bookings. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: AI-related contract value surpassed the $1 billion milestone, reinforcing that the company’s AI offerings are becoming a meaningful growth driver. ServiceNow AI Contract Value Crosses $1 Billion Milestone, Stock Soars
• Positive Sentiment: Several analysts raised or reaffirmed bullish ratings and price targets after the earnings beat, adding to momentum in the shares. ServiceNow Analysts Increase Their Forecasts After Better-Than-Expected Q2 Earnings
• Neutral Sentiment: ServiceNow also announced new partnerships and customer wins, including Experian, Leidos, TeamViewer, and Exclusive Networks, which support its long-term platform expansion but are not the main near-term stock driver. Experian accelerates AI-first experiences with ServiceNow AI Platform
• Negative Sentiment: Before earnings, the stock had been under pressure from broader AI-disruption fears and concern that enterprise software spending could slow, but the results helped offset that narrative. ServiceNow Stock Slides: What's Happening Today?

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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