ServiceNow’s (NOW) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of ServiceNow (NYSE:NOW) in a research note published on Thursday morning,Benzinga reports. Needham & Company LLC currently has a $155.00 price target on the information technology services provider’s stock.

Other research analysts have also recently issued research reports about the company. Wells Fargo & Company set a $225.00 target price on ServiceNow and gave the company an “overweight” rating in a research report on Thursday, January 8th. TD Cowen reissued a “buy” rating on shares of ServiceNow in a research report on Tuesday, January 20th. Weiss Ratings reiterated a “hold (c)” rating on shares of ServiceNow in a research note on Thursday, January 22nd. KeyCorp reiterated an “underweight” rating on shares of ServiceNow in a research note on Friday, January 9th. Finally, Arete Research set a $200.00 price target on ServiceNow in a research report on Tuesday, January 6th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and a consensus target price of $194.47.

ServiceNow Stock Performance

Shares of ServiceNow stock opened at $116.73 on Thursday. The business has a 50-day simple moving average of $149.79 and a 200 day simple moving average of $170.74. The firm has a market capitalization of $121.21 billion, a price-to-earnings ratio of 69.98, a PEG ratio of 2.01 and a beta of 0.98. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.00 and a quick ratio of 1.06. ServiceNow has a one year low of $113.13 and a one year high of $211.48.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, beating the consensus estimate of $0.89 by $0.03. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter in the previous year, the company posted $0.73 earnings per share. The company’s quarterly revenue was up 20.7% on a year-over-year basis. On average, research analysts anticipate that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Transactions at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction that occurred 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 transaction, the director owned 47,930 shares in the company, valued at $7,745,488. This represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Gina Mastantuono sold 2,085 shares of the firm’s stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $161.60, for a total transaction of $336,936.00. Following the completion of the sale, the chief financial officer directly owned 63,215 shares of the company’s stock, valued at approximately $10,215,544. This represents a 3.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceNow

Large investors have recently made changes to their positions in the business. Klingman & Associates LLC lifted its holdings in ServiceNow by 22.2% during the 2nd quarter. Klingman & Associates LLC now owns 533 shares of the information technology services provider’s stock valued at $548,000 after buying an additional 97 shares in the last quarter. Ethic Inc. lifted its holdings in ServiceNow by 1.6% during the second quarter. Ethic Inc. now owns 25,496 shares of the information technology services provider’s stock worth $26,067,000 after buying an additional 397 shares during the period. Howard Capital Management Inc. lifted its stake in shares of ServiceNow by 32.0% during the 2nd quarter. Howard Capital Management Inc. now owns 1,465 shares of the information technology services provider’s stock worth $1,506,000 after purchasing an additional 355 shares during the last quarter. ASR Vermogensbeheer N.V. lifted its position in shares of ServiceNow by 128.8% during the second quarter. ASR Vermogensbeheer N.V. now owns 55,394 shares of the information technology services provider’s stock valued at $56,944,000 after buying an additional 31,181 shares during the last quarter. Finally, DekaBank Deutsche Girozentrale grew its holdings in ServiceNow by 1.6% in the second quarter. DekaBank Deutsche Girozentrale now owns 416,444 shares of the information technology services provider’s stock worth $428,783,000 after purchasing an additional 6,431 shares during the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting ServiceNow

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

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.