ServiceNow (NYSE:NOW) Trading Down 3.1% on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) was down 3.1% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $216.00 to $188.00. The Goldman Sachs Group currently has a buy rating on the stock. ServiceNow traded as low as $96.96 and last traded at $97.4080. Approximately 19,594,547 shares were traded during mid-day trading, an increase of 6% from the average daily volume of 18,520,998 shares. The stock had previously closed at $100.55.

A number of other equities research analysts have also recently weighed in on the company. Evercore reaffirmed an “outperform” rating and issued a $175.00 price objective (down from $225.00) on shares of ServiceNow in a research note on Thursday, January 29th. Citigroup lifted their price objective on ServiceNow from $235.00 to $237.00 and gave the company a “buy” rating in a research note on Friday, January 30th. Capital One Financial dropped their price objective on ServiceNow from $188.00 to $161.00 and set an “overweight” rating for the company in a research note on Friday, January 16th. Piper Sandler reaffirmed an “overweight” rating on shares of ServiceNow in a research note on Thursday, January 29th. Finally, HSBC dropped their price objective on ServiceNow from $266.40 to $226.00 and set a “buy” rating for the company in a research note on Friday, January 30th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $187.46.

Insider Activity at ServiceNow

In related news, insider Paul Fipps sold 9,641 shares of ServiceNow stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total value of $1,021,271.13. Following the completion of the transaction, the insider directly owned 11,757 shares in the company, valued at approximately $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the transaction, the insider owned 26,314 shares of the company’s stock, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 16,237 shares of company stock worth $1,697,162. Company insiders own 0.34% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst/industry checks argue the sell-off is overdone — Dan Ives says CIO feedback shows AI adoption moving from experimentation to large-scale deployment in 2026, which could support revenue acceleration for ServiceNow. Article Title
• Positive Sentiment: Enterprise partnerships and ecosystem expansion — ServiceNow announced a multi‑year agreement with DXC to scale AI-first transformations, and a new AI-native consultancy (Naitiv) founded by ex-ServiceNow leaders intends to drive larger, industry-focused implementations. These strengthen adoption pathways and potential revenue traction. Article Title Article Title
• Positive Sentiment: Institutional/manager buying — Portfolio manager Stephanie Link added to ServiceNow in a public trade, a small but visible vote of confidence from an active manager. Article Title
• Neutral Sentiment: Minor analyst estimate tweak — Erste Group trimmed FY2027 EPS expectation marginally (from $3.20 to $3.19), a change too small to drive major fundamentals shifts but noted by the street. Article Title
• Negative Sentiment: Sector-wide software sell-off and valuation pain — Commentaries note a broader “SaaSpocalypse” that has pushed ServiceNow shares down roughly 30% in 2026, amplifying downside pressure on the stock. Article Title
• Negative Sentiment: Analyst price-target cuts and scrutiny — Goldman (216→188) and BTIG (200→185) lowered targets while keeping buy ratings, and BTIG flagged questions about FY26 revenue-growth guidance; Stifel turned more cautious. These moves increase near‑term selling pressure. Article Title Article Title Article Title
• Negative Sentiment: Corporate governance/perception hit — Reporting that the CEO’s compensation rose nearly 40% in 2025 could add to investor dissatisfaction while the stock is under pressure. Article Title

Institutional Trading of ServiceNow

A number of institutional investors have recently bought and sold shares of NOW. Brighton Jones LLC lifted its holdings in ServiceNow by 1.1% during the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in ServiceNow by 4.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after buying an additional 34 shares during the last quarter. United Bank lifted its holdings in ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after buying an additional 204 shares during the last quarter. Riggs Asset Managment Co. Inc. lifted its holdings in ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after buying an additional 42 shares during the last quarter. Finally, Gamco Investors INC. ET AL lifted its holdings in ServiceNow by 0.4% during the 2nd quarter. Gamco Investors INC. ET AL now owns 4,787 shares of the information technology services provider’s stock worth $4,921,000 after buying an additional 21 shares during the last quarter. 87.18% of the stock is owned by hedge funds and other institutional investors.

ServiceNow Price Performance

The company has a market capitalization of $101.89 billion, a PE ratio of 58.40, a P/E/G ratio of 1.71 and a beta of 1.01. 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 stock has a fifty day simple moving average of $109.13 and a 200-day simple moving average of $145.54.

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

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.