ServiceNow (NYSE:NOW) Upgraded at CLSA

CLSA upgraded shares of ServiceNow (NYSE:NOW) to a moderate sell rating in a research note released on Monday morning,Zacks.com reports.

Several other brokerages also recently weighed in on NOW. DA Davidson set a $170.00 target price on ServiceNow and gave the stock a “buy” rating in a research note on Monday. Wells Fargo & Company lowered their target price on shares of ServiceNow from $185.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, April 23rd. Oppenheimer restated an “outperform” rating and set a $140.00 price target (up from $130.00) on shares of ServiceNow in a research note on Wednesday, July 15th. FBN Securities reduced their target price on ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Finally, Robert W. Baird lowered their price target on ServiceNow from $125.00 to $118.00 and set an “outperform” rating for the company in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $139.12.

ServiceNow Trading Down 6.4%

NOW opened at $95.50 on Monday. The firm has a market cap of $98.46 billion, a price-to-earnings ratio of 56.91, a PEG ratio of 1.71 and a beta of 0.96. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. ServiceNow has a 12 month low of $81.24 and a 12 month high of $210.20. The stock has a fifty day moving average price of $104.67 and a 200-day moving average price of $108.16.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share 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 company had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter last year, the company earned $0.81 earnings per share. The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. As a group, equities research analysts anticipate that ServiceNow will post 2.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the transaction, the director owned 30,090 shares in the company, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The shares were sold at an average price of $98.51, for a total transaction of $103,238.48. Following the completion of the sale, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. This 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. Over the last quarter, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On ServiceNow

A number of large investors have recently modified their holdings of NOW. Brighton Jones LLC increased its holdings in shares of ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after purchasing an additional 30 shares during the last quarter. Sivia Capital Partners LLC lifted its position in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after buying an additional 34 shares during the last quarter. United Bank boosted its position in shares of ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after purchasing an additional 204 shares during the period. Riggs Asset Managment Co. Inc. boosted its position in shares of ServiceNow by 2.2% during the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after buying an additional 42 shares during the period. Finally, Nebula Research & Development LLC grew its position in ServiceNow by 205.1% in the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after acquiring an additional 609 shares in the last quarter. 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 second-quarter expectations, reporting EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion versus $3.93 billion expected, with subscription revenue rising 24.5% year over year. ServiceNow Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its annual subscription revenue forecast again, signaling that demand for its AI-powered platform remains strong and helping reinforce the growth story. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: ServiceNow highlighted new public-sector wins across nearly all 50 U.S. states and an expanded partnership with Leidos, both of which suggest continued enterprise adoption of its AI platform. ServiceNow accelerates AI-powered government reinvention across nearly all 50 U.S. states with new customer wins
• Positive Sentiment: Management also pushed back on fears that AI competition will hurt ServiceNow, arguing its “kill switch” and workflow control capabilities make the platform more important as customers adopt autonomous AI agents. ServiceNow CEO defends the company’s relevancy, touting a kill switch for rogue AI agents
• Neutral Sentiment: ServiceNow also announced a small strategic investment in BusinessNext, a move that could expand its banking automation reach but is not likely to move the stock by itself. ServiceNow buys 5% of BusinessNext, values Indian software firm at $700 million
• Negative Sentiment: Despite the earnings beat, investors remain cautious because the stock had already sold off sharply into the report, and some commentary pointed to AI disruption risks and softer guidance as reasons the rally could fade. ServiceNow Earnings Top Views, Revenue Outlook Light, Software Stock Climbs
• Negative Sentiment: Earlier bearish analyst coverage and broader concerns about OpenAI and other AI tools pressuring legacy workflow software likely weighed on sentiment before earnings. ServiceNow gets bearish call before major earnings test

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.