ServiceNow (NYSE:NOW) Trading Down 1.6% – What’s Next?

ServiceNow, Inc. (NYSE:NOW) traded down 1.6% during trading on Wednesday . The company traded as low as $129.14 and last traded at $129.6820. 18,496,936 shares traded hands during trading, an increase of 43% from the average session volume of 12,915,059 shares. The stock had previously closed at $131.80.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Board authorizes an additional $5 billion share‑repurchase after ServiceNow reported beat-and-raise Q4 results (21% subscription revenue growth), which supports buyback-driven EPS upside and signals management confidence. ServiceNow Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: ServiceNow continues to expand AI partnerships (Anthropic announced this week, on top of a recent OpenAI tie-up), strengthening its position as an enterprise “AI control tower” and increasing addressable AI monetization. ServiceNow inks another AI partnership, this time with Anthropic
• Positive Sentiment: Expanded strategic customer commitments from Fiserv and a major CRM replacement win at Panasonic Avionics show accelerating enterprise adoption of Now Assist and ServiceNow CRM across financial services and travel—supporting recurring revenue growth. ServiceNow and Fiserv expand strategic commitment Panasonic Avionics Corporation replaces legacy systems with AI-powered ServiceNow CRM
• Positive Sentiment: CEO Bill McDermott bought shares and publicly committed to staying through 2030, a strong signal of insider confidence that management sees long-term upside despite AI disruption concerns. ServiceNow CEO is sure AI won’t eat software. He’s betting big on his own stock to prove it.
• Positive Sentiment: Analyst/preview pieces highlight sustained beat streak and rapid AI consumption (thousands of Now Assist customers, steep AI usage growth), which could underpin upside in guidance and multiple expansion if monetization continues. ServiceNow Earnings Preview: What to Watch When NOW Reports After the Bell
• Neutral Sentiment: Unusual options activity — a 31% increase in call purchases — suggests some traders expect near-term upside or are hedging around the earnings release; flow is notable but not conclusive. (No article link)
• Negative Sentiment: Media and commentators (including Jim Cramer) express uncertainty about ServiceNow’s near-term story and whether management can “explain what’s happening,” adding headline risk ahead of earnings. “I Don’t Know What to do With ServiceNow (NOW),” Says Jim Cramer
• Negative Sentiment: Shares are under pressure and trading below key moving averages, increasing sensitivity to any guidance miss or slower-than-expected AI monetization — technical weakness amplifies downside risk. What’s Happening With The Drop In ServiceNow Stock?

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Piper Sandler reaffirmed an “overweight” rating and set a $200.00 price target (down previously from $230.00) on shares of ServiceNow in a research report on Monday, January 5th. DA Davidson set a $220.00 price objective on ServiceNow and gave the company a “buy” rating in a research report on Tuesday, December 16th. Barclays boosted their target price on shares of ServiceNow from $242.00 to $245.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. KeyCorp reaffirmed an “underweight” rating on shares of ServiceNow in a report on Friday, January 9th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $195.00 price objective (down previously from $240.00) on shares of ServiceNow in a report on Monday, January 5th. Two 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 stock. Based on data from MarketBeat, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $204.24.

ServiceNow Price Performance

The company has a market cap of $134.66 billion, a P/E ratio of 78.41, a P/E/G ratio of 2.35 and a beta of 0.98. The company’s 50-day moving average price is $152.24 and its two-hundred day moving average price is $172.09. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last posted 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 $0.87 by $0.05. ServiceNow had a return on equity of 18.74% and a net margin of 13.66%.The business had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. As a group, sell-side analysts expect that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insider Buying and Selling at ServiceNow

In other news, insider Jacqueline P. Canney sold 470 shares of the firm’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 $77,745.52. Following the transaction, the insider directly owned 15,135 shares in the company, valued at approximately $2,503,571.16. This trade represents a 3.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the sale, the director directly owned 47,930 shares of the company’s stock, valued at approximately $7,745,488. This represents a 3.03% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 15,310 shares of company stock worth $2,533,585. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Kilter Group LLC bought a new position in ServiceNow during the 2nd quarter worth $25,000. IAG Wealth Partners LLC grew its position 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 acquiring an additional 18 shares during the last quarter. Noble Wealth Management PBC increased its holdings 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 worth $25,000 after acquiring an additional 128 shares during the period. Lodestone Wealth Management LLC acquired a new stake in shares of ServiceNow in the 4th quarter worth about $26,000. Finally, Albion Financial Group UT lifted its position in ServiceNow by 400.0% in the 4th quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider’s stock valued at $26,000 after purchasing an additional 136 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

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.