ServiceNow’s (NOW) Buy Rating Reiterated at DA Davidson

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reaffirmed by analysts at DA Davidson in a report released on Thursday, Marketbeat.com reports. They presently have a $220.00 price objective on the information technology services provider’s stock. DA Davidson’s price objective would suggest a potential upside of 92.05% from the stock’s current price.

NOW has been the subject of several other reports. Evercore ISI reiterated an “outperform” rating and set a $175.00 target price (down from $225.00) on shares of ServiceNow in a research note on Thursday. TD Cowen reissued a “buy” rating on shares of ServiceNow in a report on Tuesday, January 20th. Barclays boosted their target price on shares of ServiceNow from $242.00 to $245.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. BNP Paribas Exane reduced their price target on shares of ServiceNow from $186.00 to $120.00 and set a “neutral” rating on the stock in a research report on Thursday, January 22nd. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ServiceNow in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $194.79.

ServiceNow Stock Down 11.6%

NYSE:NOW traded down $15.07 during trading hours on Thursday, hitting $114.55. The stock had a trading volume of 45,786,684 shares, compared to its average volume of 14,986,205. The company has a market cap of $118.95 billion, a PE ratio of 68.88, a price-to-earnings-growth ratio of 2.27 and a beta of 0.98. The business has a 50 day simple moving average of $151.58 and a two-hundred day simple moving average of $171.79. ServiceNow has a 1-year low of $113.13 and a 1-year high of $211.48. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.03. The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a net margin of 13.66% and a return on equity of 18.74%. The business’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.73 earnings per share. Analysts predict that ServiceNow will post 8.93 EPS for the current year.

Insider Transactions at ServiceNow

In other ServiceNow news, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the company’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total value of $431,735.76. Following the completion of the transaction, the insider owned 15,000 shares in the company, valued at approximately $2,481,240. This represents a 14.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Gina Mastantuono sold 2,075 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $170.00, for a total value of $352,750.00. Following the completion of the transaction, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at $10,393,800. This trade represents a 3.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 15,310 shares of company stock valued at $2,533,585 over the last three months. 0.34% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently bought and sold shares of the stock. Klingman & Associates LLC boosted its position in 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 acquiring an additional 97 shares during the last quarter. Ethic Inc. boosted its position in shares of 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 purchasing an additional 397 shares in the last quarter. Howard Capital Management Inc. grew its stake in ServiceNow by 32.0% during the second quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock worth $1,506,000 after purchasing an additional 355 shares during the period. ASR Vermogensbeheer N.V. increased its holdings in ServiceNow by 128.8% in the second quarter. ASR Vermogensbeheer N.V. now owns 55,394 shares of the information technology services provider’s stock worth $56,944,000 after purchasing an additional 31,181 shares in the last quarter. Finally, 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 worth $428,783,000 after buying an additional 6,431 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results topped expectations — EPS of $0.92 and revenue above $3.5B with ~20% y/y growth, confirming healthy demand and AI product traction. NOW Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall
• Positive Sentiment: AI partnerships and product momentum — expanded integrations with Anthropic and OpenAI and faster Now Assist adoption support long-term AI-led monetization. ServiceNow inks another AI partnership, this time with Anthropic
• Positive Sentiment: Board authorized additional $5B buyback (including $2B accelerated) — material buyback supports share counts and signals management confidence. ServiceNow Reports Fourth Quarter and Full-Year 2025 Financial Results; Board of Directors Authorizes Additional $5B for Share Repurchase Program
• Neutral Sentiment: Mixed analyst commentary — many firms reaffirm buy ratings and high targets while others trimmed price targets; the street remains divided on valuation and near-term growth pacing.
• Negative Sentiment: Guidance indicated a slower cadence — company guided 2026 subscription revenue growth to roughly 19.5%–20.0%, a deceleration from 2025 that disappointed investors focused on acceleration. ServiceNow Guides To Steeper Slowdown Than Investors Expected
• Negative Sentiment: Sector-wide AI disruption fear and software sell-off — cautious commentary from peers (e.g., SAP) and broad software weakness magnified the post-earnings drop. US software stocks slide after SAP, ServiceNow results fuel AI disruption fears
• Negative Sentiment: Analyst cuts and positioning — some shops (KeyCorp, BMO and others) lowered targets and/or moved to underweight, adding selling pressure despite a few firms maintaining high targets. ServiceNow (NOW) PT Lowered to $115 at KeyBanc

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.