ServiceNow (NYSE:NOW) Shares Down 2% Following Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW) shares were down 2% during trading on Tuesday after The Goldman Sachs Group lowered their price target on the stock from $216.00 to $188.00. The Goldman Sachs Group currently has a buy rating on the stock. ServiceNow traded as low as $99.50 and last traded at $100.3560. Approximately 11,684,101 shares traded hands during trading, a decline of 37% from the average daily volume of 18,500,639 shares. The stock had previously closed at $102.42.

A number of other analysts have also commented on the company. Truist Financial set a $175.00 price objective on ServiceNow in a research note on Thursday, February 5th. Evercore reaffirmed an “outperform” rating and set a $175.00 price objective (down from $225.00) on shares of ServiceNow in a research note on Thursday, January 29th. BMO Capital Markets decreased their price objective on ServiceNow from $175.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. BTIG Research decreased their price objective on ServiceNow from $200.00 to $185.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, Wells Fargo & Company decreased their price objective on ServiceNow from $225.00 to $185.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 31st. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, ServiceNow has a consensus rating of “Moderate Buy” and an average target price of $187.46.

Insider Buying and Selling

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the transaction, the insider directly owned 26,314 shares in the company, valued at approximately $2,781,652.94. This represents a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 9,641 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $105.93, for a total value of $1,021,271.13. Following the transaction, the insider owned 11,757 shares in the company, valued at $1,245,419.01. This trade represents a 45.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is owned by company insiders.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Portfolio manager Stephanie Link increased her ServiceNow stake, a vote of confidence from an active value investor that can support demand for shares. Trade Tracker: Stephanie Link buys Marvell, more ServiceNow and sells Chevron
• Positive Sentiment: DXC Technology signed a multi‑year agreement to use the ServiceNow AI platform to modernize enterprise operations — a large‑scale partnership that supports future revenue and AI monetization. DXC Partners With ServiceNow on a New Wave of AI-first Enterprise Transformation
• Positive Sentiment: Former ServiceNow leaders launched Naitiv, an AI‑native ServiceNow consultancy targeting enterprise AI transformations (notable for channel expansion and potential to accelerate ServiceNow implementations). ServiceNow Partner Community Expands With Formation Of Naitiv
• Neutral Sentiment: Analysis pieces argue ServiceNow may now look undervalued after the selloff and that value investors remain holders despite AI concerns — these narratives can attract bargain hunters but are speculative until results/revisions. Assessing Whether ServiceNow (NOW) Still Looks Undervalued After Recent Weak Share Price Performance
• Neutral Sentiment: Be aware of ticker confusion: NowVertical (TSXV: NOW) press releases referencing contract expansions are for a different company and can create noise in searches. NowVertical Expands Strategic Engagement
• Negative Sentiment: BTIG trimmed its price target to $185 (from $200) while keeping a Buy — a sign analysts are lowering near‑term expectations and that upside is being re‑priced. ServiceNow Price Target Cut to $185 by BTIG
• Negative Sentiment: Goldman Sachs lowered its price target to $188 (from $216) but maintained a Buy — another notable downgrade in upside that likely pressured the stock. Goldman Sachs Adjusts Price Target on ServiceNow
• Negative Sentiment: Stifel has grown more cautious on ServiceNow (while keeping a Buy), reflecting concern about growth trajectory and investor sentiment after a sharp YTD drop — that caution contributes to selling pressure. Why Stifel Turned More Cautious on ServiceNow
• Negative Sentiment: Corporate governance/optics risk: coverage notes the CEO’s compensation rose ~40% in 2025, which can draw negative investor attention amid weak share performance. ServiceNow CEO Saw Compensation Jump Nearly 40% in 2025
• Negative Sentiment: Upcoming earnings are flagged as a crucial test; with guidance under scrutiny, the report could amplify volatility in either direction. ServiceNow Shares Face Crucial Test with Upcoming Earnings Report

Hedge Funds Weigh In On ServiceNow

A number of large investors have recently modified their holdings of NOW. IAG Wealth Partners LLC raised its holdings in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares during the period. Noble Wealth Management PBC grew its stake in shares of ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 128 shares in the last quarter. Millstone Evans Group LLC grew its stake in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC grew its stake in shares of ServiceNow by 540.0% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC acquired a new stake in shares of ServiceNow in the fourth quarter valued at about $25,000. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Trading Down 2.0%

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. The firm has a market cap of $104.97 billion, a price-to-earnings ratio of 60.17, a price-to-earnings-growth ratio of 1.71 and a beta of 1.01. The business has a 50 day moving average price of $109.76 and a 200-day moving average price of $146.19.

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

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.