ServiceNow (NYSE:NOW) Reaches New 1-Year Low After Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s stock price reached a new 52-week low during 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 $121.30 and last traded at $116.9620, with a volume of 2382671 shares traded. The stock had previously closed at $129.62.

A number of other research firms have also commented on NOW. Arete Research set a $200.00 price target on shares of ServiceNow in a research report on Tuesday, January 6th. Piper Sandler reiterated an “overweight” rating on shares of ServiceNow in a research note on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of ServiceNow in a report on Thursday, January 22nd. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $200.00 price target on shares of ServiceNow in a report on Thursday. Finally, TD Cowen reiterated a “buy” rating on shares of ServiceNow in a research report on Tuesday, January 20th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $194.84.

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction on Friday, November 28th. The stock was sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director directly owned 47,930 shares of the company’s stock, valued at $7,745,488. The trade was a 3.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 sale, the insider owned 15,000 shares of the company’s stock, valued at $2,481,240. This represents a 14.82% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is currently owned by company insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat expectations — EPS and revenue topped street estimates and subscription revenue grew >20%, showing continued demand and AI adoption. Earnings Beat
• Positive Sentiment: Board authorized a $5B buyback (including $2B accelerated), which is supportive for EPS and signals management confidence. Buyback
• Positive Sentiment: Strong AI product traction and partnerships (Anthropic, OpenAI integrations) underpin longer-term growth potential and enterprise adoption. AI Partnerships
• Neutral Sentiment: Analyst reactions are mixed: several firms (DA Davidson, Cantor, BTIG, Needham) reiterated/maintained buy or overweight ratings and raised/kept targets, while others cut targets or downgraded — leaving a wide range of price targets and sentiment dispersion. Analyst Notes
• Neutral Sentiment: Unusually large options volume was reported, indicating speculative/moderately aggressive trading that can amplify intraday moves (uncertain directional implication). Options Activity
• Negative Sentiment: Guidance signaled a slowdown: management forecast subscription growth for FY26 that implies deceleration from 2025 levels — investors viewed this as a notable deceleration risk. Guidance/Slowdown
• Negative Sentiment: Broader sector and AI disruption fears triggered a sell-off in software names; commentary highlighted multiple compression and concerns competition from new AI entrants could hurt growth/valuation. Sector/AI Fears
• Negative Sentiment: Some firms cut price targets sharply (KeyCorp to $115, Macquarie to $140), reflecting concern over valuation and near‑term execution — that contributed to downward pressure. Price Target Cuts

Institutional Trading of ServiceNow

A number of institutional investors and hedge funds have recently modified their holdings of NOW. Kilter Group LLC acquired a new stake in ServiceNow in the second quarter worth $25,000. IAG Wealth Partners LLC grew its holdings in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 18 shares during the period. Noble Wealth Management PBC increased its position in shares of ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 128 shares in the last quarter. Lodestone Wealth Management LLC acquired a new stake in ServiceNow during the 4th quarter worth $26,000. Finally, Albion Financial Group UT lifted its holdings in ServiceNow by 400.0% during the fourth quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider’s stock worth $26,000 after acquiring an additional 136 shares in the last quarter. 87.18% of the stock is owned by institutional investors.

ServiceNow Trading Down 0.0%

The company has a quick ratio of 1.06, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $121.21 billion, a P/E ratio of 69.98, a price-to-earnings-growth ratio of 2.01 and a beta of 0.98. The company has a fifty day simple moving average of $149.79 and a two-hundred day simple moving average of $170.88.

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