Needham & Company LLC Reiterates Buy Rating for ServiceNow (NYSE:NOW)

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reaffirmed by investment analysts at Needham & Company LLC in a report issued on Thursday,Benzinga reports. They currently have a $155.00 price objective on the information technology services provider’s stock. Needham & Company LLC’s target price points to a potential upside of 39.75% from the stock’s current price.

NOW has been the topic of several other research reports. BMO Capital Markets decreased their price target on shares of ServiceNow from $175.00 to $170.00 and set an “outperform” rating on the stock in a report on Thursday, January 29th. KeyCorp decreased their price objective on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating on the stock in a research report on Thursday, January 29th. Sanford C. Bernstein reissued an “outperform” rating on shares of ServiceNow in a research note on Thursday, January 29th. HSBC lowered their price objective on shares of ServiceNow from $266.40 to $226.00 and set a “buy” rating on the stock in a research report on Friday, January 30th. Finally, DA Davidson reiterated a “buy” rating and issued a $220.00 target price on shares of ServiceNow in a research report on Thursday, January 29th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $194.77.

ServiceNow Price Performance

Shares of NYSE NOW opened at $110.91 on Thursday. 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 fifty-two week low of $105.25 and a fifty-two week high of $211.48. The stock has a market cap of $116.01 billion, a PE ratio of 66.49, a price-to-earnings-growth ratio of 1.86 and a beta of 0.97. The stock has a fifty day moving average of $146.78 and a 200-day moving average of $169.06.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 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 business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter last year, the company earned $0.73 EPS. The firm’s revenue was up 20.7% compared to the same quarter last year. Equities research analysts anticipate that ServiceNow will post 8.93 earnings per share for the current year.

Insider Activity

In related news, insider Paul Fipps sold 1,525 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total transaction of $249,352.75. Following the transaction, the insider directly owned 2,705 shares in the company, valued at $442,294.55. This trade represents a 36.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $161.60, for a total value of $242,400.00. Following the completion of the transaction, the director directly owned 47,930 shares in the company, valued at $7,745,488. This trade represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 15,310 shares of company stock valued at $2,533,585. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in NOW. Klingman & Associates LLC boosted its position in shares of ServiceNow by 22.2% during the second quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock valued at $548,000 after buying an additional 97 shares during the last quarter. Ethic Inc. lifted its stake in ServiceNow by 1.6% during the 2nd quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock valued at $26,067,000 after acquiring an additional 397 shares during the period. Howard Capital Management Inc. boosted its holdings in shares of ServiceNow by 32.0% during the 2nd quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock valued at $1,506,000 after acquiring an additional 355 shares during the last quarter. DekaBank Deutsche Girozentrale boosted its holdings in shares of ServiceNow by 1.6% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 416,444 shares of the information technology services provider’s stock valued at $428,783,000 after acquiring an additional 6,431 shares during the last quarter. Finally, Game Plan Financial Advisors LLC bought a new stake in shares of ServiceNow in the second quarter worth approximately $3,396,000. 87.18% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Needham reiterated a Buy and set a $155 price target, citing strong adoption of Now Assist and AI-driven growth that make the current pullback an attractive entry point. ServiceNow: Strong Now Assist Adoption and AI-Driven Growth Create Attractive Buy Entry Point
• Positive Sentiment: Bernstein calls NOW a “discount large-cap growth” opportunity (reaffirming bullish view) — a valuation-based argument that the pullback offers long-term upside relative to peers. Why Bernstein Calls ServiceNow (NOW) a Discount Large-Cap Growth Stock
• Positive Sentiment: ServiceNow deepened its AI platform strategy via a partnership with Anthropic, reinforcing product-led AI roadmap and enterprise go-to-market that could sustain revenue expansion. ServiceNow Deepens AI Platform Strategy With Anthropic Partnership
• Positive Sentiment: Multiple broker notes (Cantor Fitzgerald, Bernstein, Stifel) remain bullish after the company’s Q4 results, providing analyst support that could limit downside and catalyze recovery. ServiceNow (NOW) Stock: Analysts Back Tech Giant Despite Post-Earnings Selloff
• Neutral Sentiment: Analysis argues AI demand for ServiceNow is rising but investors may be focused on the wrong near-term risks — a nuanced view that supports long-term demand yet explains short-term volatility. ServiceNow: AI Demand Soars While Investors Fear The Wrong Risk
• Neutral Sentiment: Debate over a possible “SaaSpocalypse” — some firms see rebound potential while others (notably media commentators) warn of structural AI disruption; outcome will drive medium-term investor conviction. Software ‘SaaSpocalypse:’ BTIG Sees Salesforce, ServiceNow Rebound, But jim Cramer Warns Of Permanent AI Obsolescence
• Negative Sentiment: Software names are under broad pressure as AI-related fears and competitive moves (new Anthropic features elsewhere) have led to sector fund outflows and a sizable pullback. Software experiencing ‘most exciting moment’ as AI fears hammer the stocks
• Negative Sentiment: Security research flagged exploitable AI agents tied to ServiceNow and Microsoft, highlighting a preventable but acute AI security risk that could worry enterprise customers and investors. Microsoft and ServiceNow’s exploitable agents reveal a growing – and preventable – AI security crisis
• Negative Sentiment: Prominent commentators (e.g., Jim Cramer) described ServiceNow as emblematic of sector pain, amplifying short-term selling pressure despite analyst pushback. Jim Cramer on ServiceNow: “This Stock Has Become a Nightmare”

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.