ServiceNow (NYSE:NOW) Price Target Cut to $226.00 by Analysts at HSBC

ServiceNow (NYSE:NOW) had its price objective trimmed by HSBC from $266.40 to $226.00 in a research note published on Friday,MarketScreener reports. The brokerage currently has a buy rating on the information technology services provider’s stock.

A number of other equities analysts have also commented on NOW. Jefferies Financial Group reduced their price objective on ServiceNow from $230.00 to $175.00 and set a “buy” rating on the stock in a research note on Friday, January 23rd. Wall Street Zen raised ServiceNow from a “hold” rating to a “buy” rating in a research note on Saturday, December 27th. Oppenheimer restated an “outperform” rating and issued a $175.00 price target (down from $200.00) on shares of ServiceNow in a report on Wednesday, January 21st. Evercore ISI reaffirmed an “outperform” rating and issued a $175.00 price objective (down from $225.00) on shares of ServiceNow in a research report on Thursday. Finally, KeyCorp decreased their price target on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating for the company in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $194.47.

ServiceNow Stock Performance

Shares of NYSE:NOW traded down $0.00 on Friday, hitting $116.73. 28,031,876 shares of the company were exchanged, compared to its average volume of 14,789,080. The company’s 50 day moving average price is $149.79 and its two-hundred day moving average price is $170.88. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.06 and a current ratio of 1.00. The firm has a market capitalization of $121.21 billion, a price-to-earnings ratio of 69.98, a PEG ratio of 2.01 and a beta of 0.98. ServiceNow has a one year low of $113.13 and a one year high of $211.48.

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

Insider Activity at ServiceNow

In other ServiceNow news, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $168.50, for a total transaction of $235,894.40. Following the sale, the insider directly owned 25,270 shares of the company’s stock, valued at $4,257,893.92. This represents a 5.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Gina Mastantuono sold 2,085 shares of the business’s stock in a transaction on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $336,936.00. Following the sale, the chief financial officer directly owned 63,215 shares in the company, valued at $10,215,544. The trade was a 3.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 15,310 shares of company stock worth $2,533,585 in the last three months. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently made changes to their positions in NOW. Richardson Financial Services Inc. boosted its holdings in shares of ServiceNow by 50.0% during the second quarter. Richardson Financial Services Inc. now owns 33 shares of the information technology services provider’s stock worth $33,000 after purchasing an additional 11 shares during the period. Brady Martz Wealth Solutions LLC lifted its holdings in ServiceNow by 1.3% in the 3rd quarter. Brady Martz Wealth Solutions LLC now owns 842 shares of the information technology services provider’s stock worth $775,000 after buying an additional 11 shares during the period. Magnus Financial Group LLC grew its position in shares of ServiceNow by 1.9% in the 3rd quarter. Magnus Financial Group LLC now owns 589 shares of the information technology services provider’s stock worth $542,000 after buying an additional 11 shares during the last quarter. Avidian Wealth Enterprises LLC increased its stake in shares of ServiceNow by 2.5% during the third quarter. Avidian Wealth Enterprises LLC now owns 453 shares of the information technology services provider’s stock valued at $417,000 after buying an additional 11 shares during the period. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors raised its holdings in shares of ServiceNow by 2.1% during the second quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 575 shares of the information technology services provider’s stock valued at $591,000 after acquiring an additional 12 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat expectations — EPS and revenue topped street estimates and subscription revenue grew >20%, showing continued demand and AI adoption. Earnings Beat
• Positive Sentiment: Board authorized a $5B buyback (including $2B accelerated), which is supportive for EPS and signals management confidence. Buyback
• Positive Sentiment: Strong AI product traction and partnerships (Anthropic, OpenAI integrations) underpin longer-term growth potential and enterprise adoption. AI Partnerships
• Neutral Sentiment: Analyst reactions are mixed: several firms (DA Davidson, Cantor, BTIG, Needham) reiterated/maintained buy or overweight ratings and raised/kept targets, while others cut targets or downgraded — leaving a wide range of price targets and sentiment dispersion. Analyst Notes
• Neutral Sentiment: Unusually large options volume was reported, indicating speculative/moderately aggressive trading that can amplify intraday moves (uncertain directional implication). Options Activity
• Negative Sentiment: Guidance signaled a slowdown: management forecast subscription growth for FY26 that implies deceleration from 2025 levels — investors viewed this as a notable deceleration risk. Guidance/Slowdown
• Negative Sentiment: Broader sector and AI disruption fears triggered a sell-off in software names; commentary highlighted multiple compression and concerns competition from new AI entrants could hurt growth/valuation. Sector/AI Fears
• Negative Sentiment: Some firms cut price targets sharply (KeyCorp to $115, Macquarie to $140), reflecting concern over valuation and near‑term execution — that contributed to downward pressure. Price Target Cuts

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.