ServiceNow (NYSE:NOW) Sets New 1-Year Low on Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s share price reached a new 52-week low during mid-day trading on Wednesday 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 $96.96 and last traded at $97.2460, with a volume of 14368952 shares changing hands. The stock had previously closed at $100.55.

A number of other equities research analysts also recently issued reports on the company. DA Davidson reissued a “buy” rating and set a $220.00 price target on shares of ServiceNow in a research report on Thursday, January 29th. Oppenheimer reaffirmed an “outperform” rating and set a $175.00 price target (down from $200.00) on shares of ServiceNow in a research report on Wednesday, January 21st. BMO Capital Markets decreased their price target on shares of ServiceNow from $175.00 to $170.00 and set an “outperform” rating for the company in a research report on Thursday, January 29th. Robert W. Baird set a $175.00 price target on ServiceNow in a report on Thursday, January 29th. Finally, DZ Bank upgraded ServiceNow to a “strong-buy” rating in a report on Thursday, December 18th. Three equities 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $187.46.

Insiders Place Their Bets

In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $101.17, for a total value of $151,755.00. Following the transaction, the director owned 46,430 shares of the company’s stock, valued at $4,697,323.10. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the business’s stock in a transaction on Friday, February 13th. The shares were 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 of the company’s stock, valued at approximately $2,781,652.94. This trade represents a 5.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,237 shares of company stock valued at $1,697,162 over the last quarter. Insiders own 0.34% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analyst/industry checks argue the sell-off is overdone — Dan Ives says CIO feedback shows AI adoption moving from experimentation to large-scale deployment in 2026, which could support revenue acceleration for ServiceNow. Article Title
• Positive Sentiment: Enterprise partnerships and ecosystem expansion — ServiceNow announced a multi‑year agreement with DXC to scale AI-first transformations, and a new AI-native consultancy (Naitiv) founded by ex-ServiceNow leaders intends to drive larger, industry-focused implementations. These strengthen adoption pathways and potential revenue traction. Article Title Article Title
• Positive Sentiment: Institutional/manager buying — Portfolio manager Stephanie Link added to ServiceNow in a public trade, a small but visible vote of confidence from an active manager. Article Title
• Neutral Sentiment: Minor analyst estimate tweak — Erste Group trimmed FY2027 EPS expectation marginally (from $3.20 to $3.19), a change too small to drive major fundamentals shifts but noted by the street. Article Title
• Negative Sentiment: Sector-wide software sell-off and valuation pain — Commentaries note a broader “SaaSpocalypse” that has pushed ServiceNow shares down roughly 30% in 2026, amplifying downside pressure on the stock. Article Title
• Negative Sentiment: Analyst price-target cuts and scrutiny — Goldman (216→188) and BTIG (200→185) lowered targets while keeping buy ratings, and BTIG flagged questions about FY26 revenue-growth guidance; Stifel turned more cautious. These moves increase near‑term selling pressure. Article Title Article Title Article Title
• Negative Sentiment: Corporate governance/perception hit — Reporting that the CEO’s compensation rose nearly 40% in 2025 could add to investor dissatisfaction while the stock is under pressure. Article Title

Institutional Investors Weigh In On ServiceNow

Hedge funds and other institutional investors have recently modified their holdings of the stock. IAG Wealth Partners LLC boosted its stake in ServiceNow by 200.0% during the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC raised 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 purchasing an additional 128 shares in the last quarter. Millstone Evans Group LLC boosted its holdings in ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after buying an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC boosted its holdings 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 worth $25,000 after buying an additional 135 shares during the period. Finally, Blueline Advisors LLC purchased a new stake in shares of ServiceNow in the 4th quarter valued at approximately $25,000. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Stock Performance

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 market capitalization of $101.89 billion, a price-to-earnings ratio of 58.46, a P/E/G ratio of 1.71 and a beta of 1.01. The firm’s 50 day simple moving average is $109.13 and its 200-day simple moving average is $145.54.

ServiceNow (NYSE:NOW) last released its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. The company had revenue of $3.57 billion during 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 was up 20.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.73 EPS. Analysts expect that ServiceNow, Inc. will post 8.93 EPS for the current 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.