Truist Financial Lowers ServiceNow (NYSE:NOW) Price Target to $120.00

Key Points

• Truist Financial cut its price target on ServiceNow to $120 (from $125) but maintained a "buy" rating; the stock's consensus remains a "Moderate Buy" with an average analyst target of $155.86.
• ServiceNow beat Q1 revenue estimates and raised its annual subscription revenue outlook after ~22% YoY subscription growth driven by AI demand, yet warned of a ~75 bp FY operating-margin headwind from the Armis acquisition and deal delays in the Middle East.
• The stock fell sharply, trading down $16.26 to $86.81, amid analyst target cuts and rising short interest; ServiceNow's market cap is about $89.95 billion with a P/E of 52.17.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective decreased by stock analysts at Truist Financial from $125.00 to $120.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The brokerage presently has a "buy" rating on the information technology services provider's stock. Truist Financial's price objective indicates a potential upside of 38.23% from the company's current price.

Other equities analysts have also recently issued research reports about the stock. BTIG Research reaffirmed a "buy" rating and issued a $185.00 price objective on shares of ServiceNow in a research note on Monday. HSBC reduced their price objective on ServiceNow from $226.00 to $171.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Robert W. Baird decreased their target price on shares of ServiceNow from $125.00 to $118.00 and set an "outperform" rating for the company in a research note on Thursday. Arete Research set a $200.00 price target on ServiceNow in a research note on Tuesday, January 6th. Finally, Argus raised shares of ServiceNow to a "strong-buy" rating in a research report on Wednesday, February 4th. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $155.86.

ServiceNow Stock Performance

Shares of NYSE:NOW traded down $16.26 on Thursday, hitting $86.81. The company's stock had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. The stock's 50-day moving average is $105.55 and its two-hundred day moving average is $138.83. The company has a market capitalization of $89.95 billion, a price-to-earnings ratio of 52.17, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. ServiceNow has a 12 month low of $81.24 and a 12 month high of $211.48.

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 analysts' consensus estimates of $0.97. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period in the previous year, the firm earned $4.04 EPS. ServiceNow's revenue was up 22.1% on a year-over-year basis. On average, equities research analysts forecast that ServiceNow will post 2.49 EPS for the current year.

Insider Buying and Selling

In other ServiceNow news, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow 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 sale, the insider directly owned 26,314 shares of the company's stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Paul Fipps sold 9,641 shares of the company's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $105.93, for a total value of $1,021,271.13. Following the completion of the sale, the insider owned 11,757 shares in the company, valued at $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 16,237 shares of company stock valued at $1,697,162 over the last ninety days. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in shares of ServiceNow by 404.5% in the fourth 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 grew its position 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 worth $7,337,280,000 after acquiring an additional 38,441,898 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings 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 valued at $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC increased its holdings 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 valued at $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley raised its position in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider's stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

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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