ServiceNow (NYSE:NOW) Trading Down 1.1% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) traded down 1.1% during mid-day trading on Tuesday . The company traded as low as $103.88 and last traded at $105.85. 27,059,431 shares were traded during trading, an increase of 32% from the average session volume of 20,424,789 shares. The stock had previously closed at $107.08.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Senior insiders including CEO Bill McDermott completed open‑market purchases (McDermott ~$3M) and several executives terminated 10b5‑1 automated sale plans — a strong vote of confidence from management. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse
• Positive Sentiment: The board authorized a $5B buyback and the company immediately executed a $2B accelerated share repurchase (ASR), which reduces share count and boosts EPS near-term. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse
• Positive Sentiment: Analyst/market sentiment support: Needham maintained a Buy rating and several bullish writeups (Zacks, TipRanks) highlight long‑term growth prospects and attractive valuation after the pullback. Needham Maintains a Buy Rating
• Positive Sentiment: Management is positioning ServiceNow as the governance layer for AI agents (the “AI Control Tower”), and the company highlights autonomous‑work capabilities and recent M&A (e.g., Armis, Moveworks) to secure control, security and conversational interfaces. This supports recurring subscription economics even if seat counts change. ServiceNow bets big on autonomous work and AI control for 2026 growth
• Neutral Sentiment: Product update context: ServiceNow rolled out AI agents that can operate without human intervention — a capability that both drives platform relevance (governance need) and feeds the narrative around potential seat compression; impact will depend on adoption and pricing models. ServiceNow’s new AI agents can work without human intervention
• Negative Sentiment: Macro/sector pressure: a broad “SaaSpocalypse” narrative — fear that AI will compress software seat counts and recurring license revenue — is driving heavy selling across enterprise software names and is the primary reason NOW shares have declined. ServiceNow Insiders Buy as Wall Street Panics Over an AI SaaSpocalypse

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on NOW. Jefferies Financial Group lowered their target price on shares of ServiceNow from $230.00 to $175.00 and set a “buy” rating for the company in a report on Friday, January 23rd. UBS Group set a $115.00 target price on ServiceNow in a research note on Thursday, January 29th. Deutsche Bank Aktiengesellschaft set a $180.00 price target on shares of ServiceNow in a research note on Thursday, January 29th. Zacks Research lowered ServiceNow from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 11th. Finally, Arete Research set a $200.00 target price on shares of ServiceNow in a research report on Tuesday, January 6th. Three investment 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $192.06.

ServiceNow Trading Down 1.1%

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 firm has a 50-day moving average price of $136.87 and a 200-day moving average price of $163.80. The company has a market capitalization of $110.72 billion, a price-to-earnings ratio of 53.27, a PEG ratio of 1.81 and a beta of 0.97.

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

Insiders Place Their Bets

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total value of $151,755.00. Following the transaction, the director owned 46,430 shares in the company, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Gina Mastantuono sold 2,075 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $170.00, for a total transaction of $352,750.00. Following the completion of the sale, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at $10,393,800. This represents a 3.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 9,885 shares of company stock valued at $1,446,543 in the last 90 days. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Several hedge funds have recently added to or reduced their stakes in the business. Kilter Group LLC acquired a new stake in ServiceNow during the 2nd quarter valued at $25,000. IAG Wealth Partners LLC grew its holdings in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC grew its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 128 shares during the last quarter. Millstone Evans Group LLC increased its stake in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 132 shares in the last quarter. Finally, CBIZ Investment Advisory Services LLC raised its holdings in shares of ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 135 shares during the last quarter. Institutional investors own 87.18% of the company’s stock.

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.