ServiceNow (NYSE:NOW) Stock Price Up 10.2% – Should You Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price traded up 10.2% during trading on Friday . The stock traded as high as $98.92 and last traded at $98.6440. 26,951,536 shares changed hands during mid-day trading, an increase of 11% from the average session volume of 24,195,422 shares. The stock had previously closed at $89.52.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is benefiting from a sector rotation into software, with traders favoring software stocks over chips amid a broader tech sell-off. The Market Rotation Is On. ServiceNow, Workday, and AppLovin Rise as Software Tops Chips.
• Positive Sentiment: Oppenheimer reaffirmed an Outperform rating and $130 price target on ServiceNow after speaking with management, citing optimism around AI growth, the Cognizant partnership, and a possible reacceleration in the second half of 2026. Oppenheimer Reaffirms Bullish Outlook on ServiceNow (NOW) Amid AI Growth and Cognizant Partnership
• Positive Sentiment: Several recent articles frame ServiceNow as undervalued relative to its business quality, which may be supporting sentiment around the stock. ServiceNow: An Excellent Business Trading at a Discount
• Neutral Sentiment: Broader commentary on the AI trade suggests investors are reassessing winners and losers in tech, which could keep NOW volatile even as software holds up better than chips. The AI Selloff Is Getting Brutal: 10 Tech Giants Already Deep in Bear Market Territory
• Neutral Sentiment: Recent coverage comparing Salesforce and ServiceNow highlights steady revenue growth at NOW, but does not indicate a new catalyst on its own. Salesforce vs. ServiceNow: What Do Their Revenue Trends Tell Investors?

Wall Street Analyst Weigh In

Several research firms recently weighed in on NOW. Oppenheimer reiterated an “outperform” rating on shares of ServiceNow in a research report on Tuesday, May 26th. Piper Sandler reduced their price target on ServiceNow from $200.00 to $140.00 and set an “overweight” rating for the company in a research report on Thursday, April 23rd. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $121.00 price objective on shares of ServiceNow in a research note on Tuesday, May 5th. Weiss Ratings cut ServiceNow from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, April 21st. Finally, UBS Group reiterated an “outperform” rating on shares of ServiceNow in a research note on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $142.17.

ServiceNow Price Performance

The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The stock has a 50 day simple moving average of $100.01 and a 200-day simple moving average of $115.39. The firm has a market cap of $101.70 billion, a PE ratio of 58.79, a price-to-earnings-growth ratio of 1.56 and a beta of 0.94.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.97. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the prior year, the company posted $0.81 earnings per share. The business’s quarterly revenue was up 22.1% compared to the same quarter last year. Equities analysts anticipate that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the sale, the director owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the transaction, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. This trade represents a 7.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 28,071 shares of company stock valued at $2,529,956. Corporate insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after acquiring an additional 81,752,460 shares during the last quarter. State Street Corp grew its holdings in shares of ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC raised its stake in ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after purchasing an additional 18,854,775 shares in the last quarter. Finally, Morgan Stanley lifted its position in ServiceNow by 335.6% during the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

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.