ServiceNow (NYSE:NOW) Trading Down 9.8% on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) shares traded down 9.8% during mid-day trading on Thursday after Macquarie lowered their price target on the stock from $172.00 to $140.00. Macquarie currently has a neutral rating on the stock. ServiceNow traded as low as $113.13 and last traded at $116.8670. 54,867,526 shares changed hands during trading, an increase of 253% from the average session volume of 15,551,361 shares. The stock had previously closed at $129.62.

Other research analysts have also recently issued research reports about the company. BNP Paribas Exane decreased their price target on ServiceNow from $186.00 to $120.00 and set a “neutral” rating on the stock in a research report on Thursday, January 22nd. Cantor Fitzgerald restated an “overweight” rating and set a $200.00 price objective on shares of ServiceNow in a research report on Thursday. Arete Research set a $200.00 target price on ServiceNow in a research report on Tuesday, January 6th. Canaccord Genuity Group set a $200.00 price target on ServiceNow in a report on Thursday. Finally, Wall Street Zen upgraded shares of ServiceNow from a “hold” rating to a “buy” rating in a research report on Saturday, December 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $194.79.

Insider Buying and Selling

In other news, insider Paul Fipps sold 1,525 shares of the business’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total value of $249,352.75. Following the transaction, the insider directly owned 2,705 shares of the company’s stock, valued at $442,294.55. The trade was a 36.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Lawrence Jackson sold 1,325 shares of the company’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $162.04, for a total value of $214,708.30. Following the sale, the director owned 1,615 shares in the company, valued at approximately $261,701.06. The trade was a 45.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 15,310 shares of company stock worth $2,533,585. Corporate insiders own 0.34% of the company’s stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results topped expectations — EPS and revenue beat, subscription growth remained strong and management highlighted accelerating AI adoption that drove meaningful new business wins. NOW Q4 Earnings Beat
• Positive Sentiment: ServiceNow expanded AI partnerships (Anthropic, OpenAI) and positioned Now Assist as a growth driver — evidence management is monetizing generative AI across customers. Anthropic partnership
• Positive Sentiment: Board authorized an additional $5B for buybacks (including $2B accelerated), a shareholder-return action that reduces float and supports EPS. $5B buyback announcement
• Positive Sentiment: Insider/management confidence: CEO bought stock and committed to staying, which can reassure investors about long-term strategy execution. CEO stock purchase
• Neutral Sentiment: Company guided 2026 subscription revenue above some street estimates (company gave a range that exceeded consensus dollars), but the pace implies a modest deceleration from 2025 — mixed for valuation-sensitive investors. Guidance vs. estimates
• Negative Sentiment: Guidance flagged a slowdown in subscription revenue growth to roughly 19.5%–20.0% in 2026 (versus ~20.5% in 2025), triggering concern that growth is decelerating even as management highlights AI momentum. Guidance slowdown
• Negative Sentiment: High valuation leaves stock vulnerable to disappointment — several analysts trimmed targets and one major firm moved to underweight, which pressured sentiment. Analyst price-target changes
• Negative Sentiment: Broader software/AI rotation and headlines about AI disruption (SAP caution + sector weakness) amplified selling pressure across enterprise software, turning a mixed beat into a post-earnings selloff. Sector AI fears

Institutional Trading of ServiceNow

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of ServiceNow by 404.5% during the fourth quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock valued at $15,619,771,000 after purchasing an additional 81,752,460 shares during the period. Nordea Investment Management AB increased its position in ServiceNow by 388.7% in the 4th quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider’s stock valued at $720,325,000 after buying an additional 3,743,087 shares in the last quarter. Pictet Asset Management Holding SA raised its stake in ServiceNow by 613.4% during the 4th quarter. Pictet Asset Management Holding SA now owns 3,840,262 shares of the information technology services provider’s stock worth $588,326,000 after buying an additional 3,301,962 shares during the period. Norges Bank bought a new position in ServiceNow in the second quarter worth approximately $2,589,235,000. Finally, Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of ServiceNow by 385.9% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,599,397 shares of the information technology services provider’s stock valued at $398,202,000 after acquiring an additional 2,064,440 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

ServiceNow Trading Down 9.8%

The business has a fifty day moving average of $151.58 and a 200-day moving average of $171.79. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market capitalization of $121.35 billion, a P/E ratio of 70.66, a PEG ratio of 2.27 and a beta of 0.98.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to analyst estimates 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 last year, the firm earned $0.73 earnings per share. Analysts anticipate that ServiceNow, Inc. will post 8.93 earnings per share for the current fiscal year.

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.