Wells Fargo & Company Cuts ServiceNow (NYSE:NOW) Price Target to $160.00

Key Points

• Wells Fargo cut its price target on ServiceNow to $160 (from $185) while keeping an "overweight" rating, in line with a MarketBeat consensus target of about $155.86 as several other analysts also trimmed targets.
• Shares plunged to $86.71 after Q1 trading—despite a revenue beat ($3.77B) and in‑line EPS ($0.97)—as the company raised its subscription revenue outlook on stronger AI adoption (+~22% YoY), yet investor sentiment turned negative.
• Investor concerns center on near‑term headwinds from the Armis acquisition (roughly a 75 bp FY operating‑margin hit, 125 bps in Q2) and delayed large Middle East deals, which along with analyst cuts increased short interest and amplified the selloff.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective lowered by investment analysts at Wells Fargo & Company from $185.00 to $160.00 in a research note issued on Thursday,MarketScreener reports. The firm currently has an "overweight" rating on the information technology services provider's stock. Wells Fargo & Company's price objective would indicate a potential upside of 84.53% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the stock. Weiss Ratings cut shares of ServiceNow from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday. Truist Financial dropped their price objective on ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday. The Goldman Sachs Group decreased their target price on ServiceNow from $188.00 to $163.00 and set a "buy" rating for the company in a research report on Thursday. Benchmark started coverage on shares of ServiceNow in a research note on Wednesday, April 1st. They issued a "buy" rating and a $125.00 price target for the company. Finally, Arete Research set a $200.00 price objective on shares of ServiceNow in a research report on Tuesday, January 6th. 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 company's stock. According to MarketBeat, ServiceNow currently has a consensus rating of "Moderate Buy" and a consensus target price of $155.86.

ServiceNow Stock Performance

Shares of NOW traded down $16.36 during mid-day trading on Thursday, hitting $86.71. The stock had a trading volume of 17,589,364 shares, compared to its average volume of 20,024,004. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.00. The business has a fifty day moving average price of $105.55 and a 200-day moving average price of $138.83. The firm has a market cap of $89.84 billion, a P/E ratio of 52.17, a PEG ratio of 1.68 and a beta of 1.01.

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 return on equity of 18.54% and a net margin of 13.16%.The firm's revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the firm posted $4.04 EPS. On average, equities research analysts expect that ServiceNow will post 2.49 EPS for the current year.

Insider Transactions at ServiceNow

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the sale, the director owned 46,430 shares of the company's stock, valued at approximately $4,697,323.10. This trade represents a 3.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 transaction of $376,141.92. Following the completion of the sale, the insider owned 8,061 shares of the company's stock, valued at approximately $820,367.97. This trade represents a 31.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. IAG Wealth Partners LLC grew 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 valued at $25,000 after acquiring an additional 18 shares during the period. Noble Wealth Management PBC boosted its stake in shares of ServiceNow by 400.0% in the fourth 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 during the last quarter. Millstone Evans Group LLC increased its position in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its stake in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock valued at $25,000 after purchasing an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC purchased a new position in ServiceNow in the 4th quarter valued at $25,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about ServiceNow

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

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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