TD Cowen Has Lowered Expectations for ServiceNow (NYSE:NOW) Stock Price

Key Points

• TD Cowen cut its price target on ServiceNow from $185 to $140 but kept a "buy" rating, a level that still implies about a 48.77% upside from the stock's prior close.
• ServiceNow reported a Q1 beat (EPS $0.92 vs. $0.89; revenue $3.57B, +20.7% year‑over‑year), yet the stock is down roughly 43% YTD and carries a consensus price target of $177.35 with an average rating of "Moderate Buy."
• Analyst price‑target cuts and downgrades, together with recent insider selling (16,237 shares sold this quarter; insiders own ~0.34%), are weighing on investor sentiment and near‑term price action.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective decreased by stock analysts at TD Cowen from $185.00 to $140.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has a "buy" rating on the information technology services provider's stock. TD Cowen's price target suggests a potential upside of 48.77% from the stock's previous close.

Several other research analysts have also issued reports on NOW. DZ Bank raised ServiceNow to a "strong-buy" rating in a research report on Thursday, December 18th. Wall Street Zen lowered ServiceNow from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Piper Sandler reaffirmed an "overweight" rating on shares of ServiceNow in a research report on Thursday, January 29th. Citigroup reaffirmed a "buy" rating and set a $177.00 price objective (down from $237.00) on shares of ServiceNow in a research report on Wednesday. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $155.00 price objective on shares of ServiceNow in a research report on Thursday, February 5th. Three 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 issued a Sell rating to the company. According to data from MarketBeat.com, ServiceNow has an average rating of "Moderate Buy" and a consensus price target of $177.35.

ServiceNow Stock Up 7.2%

Shares of NYSE NOW opened at $94.11 on Thursday. The firm has a fifty day simple moving average of $105.93 and a two-hundred day simple moving average of $141.78. ServiceNow has a 12 month low of $81.24 and a 12 month high of $211.48. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $97.51 billion, a PE ratio of 56.42, a price-to-earnings-growth ratio of 1.47 and a beta of 1.01.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. During the same quarter in the prior year, the company earned $0.73 EPS. The business's revenue was up 20.7% compared to the same quarter last year. Equities analysts expect that ServiceNow will post 8.93 earnings per share for the current year.

Insider Buying and Selling

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 sale, the insider owned 8,061 shares in the company, valued at approximately $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 can be accessed through the SEC website. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares in the company, valued at $2,781,652.94. This represents a 5.05% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Several institutional investors and hedge funds have recently added to or reduced their stakes in NOW. IAG Wealth Partners LLC increased its position in ServiceNow by 200.0% in the third 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. Noble Wealth Management PBC increased its holdings in ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 128 shares in the last quarter. Millstone Evans Group LLC increased its holdings in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its stake in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after acquiring an additional 135 shares during the period. Finally, Blueline Advisors LLC purchased a new position in ServiceNow during the fourth quarter valued at approximately $25,000. Hedge funds and other institutional investors own 87.18% of the company's stock.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Risk‑on market sentiment tied to easing geopolitical tensions lifted growth and software names, helping ServiceNow recover as investors rotate back into high‑margin, AI‑exposed enterprises. Why Is ServiceNow (NOW) Stock Rocketing Higher Today
• Positive Sentiment: High‑profile endorsement: Jim Cramer flagged ServiceNow as able to move higher, noting an expanded buyback and an insider (CEO) share purchase — signals that can boost investor confidence and short‑term buying. Jim Cramer on ServiceNow
• Positive Sentiment: Near‑term AI demand and international expansion could underpin revenue growth: analysts and reporters point to early signs of AI‑driven demand ahead of Q1 results and new data centers/expansion in Brazil positioning ServiceNow as an AI workflow hub in Latin America. ServiceNow Seen Delivering Modest Q1 Beat ServiceNow Expands AI Workflow Hub In Brazil
• Neutral Sentiment: Partner and ecosystem updates (TrustCloud integration, top partner recognitions, and favorable analyst ranking ahead of earnings) reinforce product momentum but are incremental vs. macro/analyst drivers. TrustCloud Integration Cadena Co. Named #1 Partner Mizuho Ranking
• Negative Sentiment: Analyst price‑target cuts and downgrades are weighing on sentiment: BMO trimmed its target to $120 and maintained an outperform rating, while Citi and other firms have also trimmed targets — adding downward pressure despite positive commentary. BMO Cuts Target to $120 Citi Cuts Target
• Negative Sentiment: Analyst downgrades have produced near‑term pullbacks — an article noted a recent 1.4% drop tied to analyst action — signaling that investor attention is focused on revisions to estimates and targets ahead of earnings. Stock Down 1.4% on Analyst Downgrade
• Negative Sentiment: Broader caution from outlets noting a steep YTD decline (reported ~43% YTD) and lowered targets from firms like Oppenheimer highlight longer‑term valuation concerns and increase sensitivity to any earnings miss. YTD Plunge and Oppenheimer Cut RBC Pessimistic Forecast

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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