Wells Fargo & Company Has Lowered Expectations for ServiceNow (NYSE:NOW) Stock Price

ServiceNow (NYSE:NOW) had its target price dropped by investment analysts at Wells Fargo & Company from $225.00 to $185.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has an “overweight” rating on the information technology services provider’s stock. Wells Fargo & Company‘s price objective would indicate a potential upside of 77.85% from the stock’s current price.

Several other brokerages have also weighed in on NOW. Capital One Financial decreased their price objective on ServiceNow from $188.00 to $161.00 and set an “overweight” rating on the stock in a report on Friday, January 16th. Truist Financial set a $175.00 target price on ServiceNow in a research note on Thursday, February 5th. Piper Sandler reaffirmed an “overweight” rating on shares of ServiceNow in a research report on Thursday, January 29th. DA Davidson reiterated a “buy” rating and set a $220.00 price target on shares of ServiceNow in a research note on Thursday, January 29th. Finally, Macquarie Infrastructure lowered their price target on shares of ServiceNow from $172.00 to $140.00 and set a “neutral” rating on the stock in a report on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $189.77.

ServiceNow Stock Down 0.5%

Shares of NOW opened at $104.02 on Tuesday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The company has a 50-day simple moving average of $111.59 and a 200-day simple moving average of $148.31. ServiceNow has a 52 week low of $98.00 and a 52 week high of $211.48. The firm has a market capitalization of $108.80 billion, a P/E ratio of 62.36, a P/E/G ratio of 1.75 and a beta of 1.00.

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

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction 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 sale, the director owned 46,430 shares of the company’s stock, valued at $4,697,323.10. The trade was a 3.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the completion of the sale, the insider owned 26,314 shares in the company, valued at $2,781,652.94. This trade represents a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 16,237 shares of company stock valued at $1,697,162 in the last 90 days. 0.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ServiceNow

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

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow announced a $3 billion unsecured revolving credit facility and money-market/CP programs to boost liquidity and lower refinancing risk, giving management more flexibility to fund operations, M&A or AI investments. ServiceNow Boosts Liquidity With New Credit and CP Programs
• Positive Sentiment: Benchmark initiated coverage with a Buy and $125 price target, calling the recent sell-off a buying opportunity — this can attract value-oriented flows. Benchmark Initiates ServiceNow at Buy with $125 Price Target
• Positive Sentiment: Morgan Stanley reiterated a Buy with a $210 target, highlighting resilient growth and AI monetization potential — a large, bullish institutional voice that may support longer-term confidence. ServiceNow: Resilient Growth, AI Monetization, and Accretive Acquisitions Create Attractive Risk/Reward
• Positive Sentiment: BigPanda became an elite Build Partner and launched a certified app to convert alert streams into context-rich incidents inside ServiceNow — a product tie-up that strengthens Now Platform’s operational AI credentials. BigPanda Partners with ServiceNow to Extend ServiceNow with Advanced Event Intelligence and Incident Automation
• Neutral Sentiment: ServiceNow set its Q1 2026 earnings release for April 22 — a near-term catalyst that will refocus investors on growth, margins, subscription trends and AI monetization. ServiceNow to Announce First Quarter 2026 Financial Results on April 22
• Neutral Sentiment: Shares have seen occasional bargain-hunting bounces near the 52-week low, indicating some short-term buying interest even amid the drawdown. ServiceNow (NOW) Climbs 5.6% on Bargain-Hunting After Near Low
• Neutral Sentiment: Consensus analyst coverage remains generally constructive (average rating around “moderate buy”), suggesting mixed but not uniformly negative institutional views. ServiceNow, Inc. (NYSE:NOW) Receives Average Rating of “Moderate Buy” from Analysts
• Negative Sentiment: Multiple outlets highlight a ~30%+ YTD decline and the stock’s worst quarter on record, driven by investor worries over slower growth and increased competition from AI-native players — a key pressure point for sentiment. ServiceNow Drops 32% Year to Date: Should You Still Buy the Stock?
• Negative Sentiment: Wells Fargo trimmed its price target to $185 (still Overweight) — the cut signals some near-term caution from sell-side desks even if they remain constructive on the long run. Wall Street Price Prediction: ServiceNow Price Target Set at $185
• Negative Sentiment: Coverage pieces raising questions about AI competition and execution have amplified selling pressure; until Q1 results and guidance clarity, sentiment may remain fragile. ServiceNow’s stock is having its worst quarter on record. What comes next?

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.