ServiceNow (NYSE:NOW) Receives “Buy” Rating from Needham & Company LLC

Posted by Trevor Kearing on Jul 23rd, 2026

ServiceNow (NYSE:NOW – Get Free Report)‘s stock had its “buy” rating reaffirmed by investment analysts at Needham & Company LLC in a report issued on Thursday,Benzinga reports. They currently have a $115.00 price target on the information technology services provider’s stock. Needham & Company LLC’s price target indicates a potential upside of 20.43% from the company’s previous close.

A number of other brokerages also recently issued reports on NOW. Citic Securities cut their target price on ServiceNow from $168.00 to $140.00 and set a “buy” rating for the company in a research note on Thursday, May 21st. Raymond James Financial lowered their price target on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating on the stock in a research report on Thursday, April 23rd. Barclays reissued an “overweight” rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Truist Financial lifted their target price on shares of ServiceNow from $120.00 to $130.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Finally, UBS Group reiterated a “market outperform” rating on shares of ServiceNow in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $139.32.

Check Out Our Latest Stock Analysis on NOW

ServiceNow Trading Down 6.4%

NOW opened at $95.50 on Thursday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The company’s 50 day simple moving average is $104.67 and its two-hundred day simple moving average is $108.16. ServiceNow has a 1-year low of $81.24 and a 1-year high of $210.20. The firm has a market capitalization of $98.46 billion, a price-to-earnings ratio of 56.91, a price-to-earnings-growth ratio of 1.71 and a beta of 0.96.

ServiceNow (NYSE:NOW – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the business earned $0.81 earnings per share. The business’s revenue was up 24.0% compared to the same quarter last year. Analysts expect that ServiceNow will post 2.33 EPS for the current fiscal year.

Insider Activity at ServiceNow

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This represents a 7.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 in the last quarter. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently made changes to their positions in the stock. Millstone Evans Group LLC raised its position in 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 purchasing an additional 132 shares during the period. CBIZ Investment Advisory Services LLC boosted its position in shares of ServiceNow by 540.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 135 shares during the period. Blueline Advisors LLC acquired a new stake in shares of ServiceNow in the fourth quarter valued at $25,000. Measured Wealth Private Client Group LLC grew its stake in shares of ServiceNow by 560.0% in the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 140 shares in the last quarter. Finally, Wealth Watch Advisors INC raised its holdings in shares of ServiceNow by 432.3% in the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 134 shares during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: ServiceNow beat Q2 earnings and revenue estimates, with subscription revenue growth of 24.5% and management raising full-year subscription guidance again. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
Positive Sentiment: AI demand remains a major driver, with AI ACV topping $1 billion and management positioning ServiceNow as a control layer for enterprise AI safety and governance. ServiceNow Inc (NOW) Q2 2026 Earnings Call Highlights
Positive Sentiment: New and expanded partnerships with Experian, Leidos, TeamViewer, and Exclusive Networks suggest broader adoption of the ServiceNow AI Platform across industries and regions. Experian accelerates AI-first experiences with ServiceNow AI Platform
Neutral Sentiment: ServiceNow’s CEO used the earnings call and media appearances to emphasize cybersecurity momentum and AI safety controls, which supports the long-term story but is not a direct financial catalyst. ServiceNow CEO defends the company’s relevancy, touting a kill switch for rogue AI agents
Negative Sentiment: Some investors remain cautious because software peers have warned about AI-related disruption and delayed buying decisions, keeping sentiment around the stock mixed despite the strong quarter. Why ServiceNow Stock Was Slipping Today

About ServiceNow

(Get Free Report)

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.