HSBC Cuts ServiceNow (NYSE:NOW) Price Target to $226.00

ServiceNow (NYSE:NOW) had its target price decreased by HSBC from $266.40 to $226.00 in a research note issued to investors on Friday,MarketScreener reports. HSBC currently has a buy rating on the information technology services provider’s stock.

Several other equities research analysts have also recently issued reports on the company. Mizuho cut their target price on ServiceNow from $210.00 to $190.00 and set an “outperform” rating for the company in a research note on Wednesday, January 21st. Wall Street Zen upgraded shares of ServiceNow from a “hold” rating to a “buy” rating in a research note on Saturday, December 27th. DA Davidson restated a “buy” rating and set a $220.00 target price on shares of ServiceNow in a research note on Thursday. TD Cowen reissued a “buy” rating on shares of ServiceNow in a report on Tuesday, January 20th. Finally, Evercore ISI reaffirmed an “outperform” rating and set a $175.00 price objective (down from $225.00) on shares of ServiceNow in a research report on Thursday. Two investment 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’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $194.47.

ServiceNow Stock Down 0.0%

Shares of NOW opened at $116.73 on Friday. The firm has a market cap of $121.21 billion, a P/E ratio of 69.98, a PEG ratio of 2.04 and a beta of 0.98. The stock’s 50 day moving average is $149.79 and its two-hundred day moving average is $170.58. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. ServiceNow has a 12 month low of $113.13 and a 12 month high of $211.48.

ServiceNow (NYSE:NOW) last posted its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping 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 company had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. During the same period in the previous year, the business earned $0.73 EPS. ServiceNow’s quarterly revenue was up 20.7% on a year-over-year basis. Analysts predict that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other 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 sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total value of $431,735.76. Following the sale, the insider directly owned 15,000 shares of the company’s stock, valued at approximately $2,481,240. This represents a 14.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 15,310 shares of company stock worth $2,533,585 in the last three months. Company insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

Several hedge funds have recently made changes to their positions in the company. Kilter Group LLC acquired a new stake in shares of ServiceNow during the second quarter valued at $25,000. IAG Wealth Partners LLC grew its holdings in shares of ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC grew its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 128 shares in the last quarter. Lodestone Wealth Management LLC acquired a new position in shares of ServiceNow in the fourth quarter valued at approximately $26,000. Finally, Albion Financial Group UT boosted its position 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 during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

Trending Headlines about 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

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.