ServiceNow (NYSE:NOW) Shares Climb 1.5% – What’s Next?

ServiceNow, Inc. (NYSE:NOW)’s share price was up 1.5% during mid-day trading on Tuesday. The company traded as high as $140.60 and last traded at $138.14. 9,446,760 shares were traded during mid-day trading, a decline of 57% from the average session volume of 21,999,408 shares. The stock had previously closed at $136.08.

Key ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Improving demand outlook: UBS said ServiceNow’s third-quarter demand trends appear stable with some improvement. The firm raised its estimates for current remaining performance obligations and subscription-revenue growth by 50 basis points, citing stronger interest in AI and security. UBS expects a normal guidance beat rather than an outsized surprise, but still raised its price target. ServiceNow demand trends show improvement as UBS raises price target
• Positive Sentiment: AI monetization is expanding: ServiceNow says approximately 50% of net-new revenue is now non-seat-based, reflecting a shift toward consumption and usage-driven AI offerings. Reports also note that the company has surpassed $1 billion in AI contract value, strengthening the case that AI is becoming a meaningful commercial growth engine. ServiceNow says 50% of net-new revenue non-seat-based amid AI shift
• Positive Sentiment: New AI workflow products: The company launched AI Workflow Factory and Autonomous Engineer, designed to identify opportunities for automation and build, operate, and extend AI workflows across fragmented enterprise systems. The products could increase customer use of ServiceNow’s platform and support higher-value contracts. ServiceNow launches AI Workflow Factory
• Positive Sentiment: Analyst and investor optimism: Stifel expects consumption trends to gain momentum, while bullish commentary suggests generative AI could drive substantial upside if adoption accelerates. ServiceNow’s India expansion and partner ecosystem also provide additional avenues for enterprise growth. ServiceNow AI Adoption, Enterprise Spending Catches Analyst Attention
• Neutral Sentiment: Key risks remain: Some customers are still uncertain about AI-enabled products and ServiceNow’s pricing model. With the stock trading at a high earnings multiple, investors may demand evidence that AI bookings convert into sustained revenue and earnings growth. ServiceNow AI Adoption, Enterprise Spending Catches Analyst Attention

Wall Street Analyst Weigh In

A number of research firms have weighed in on NOW. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of ServiceNow in a research report on Wednesday, September 9th. Jefferies Financial Group restated a “buy” rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a report on Thursday, July 23rd. DA Davidson set a $170.00 target price on shares of ServiceNow and gave the company a “buy” rating in a research report on Monday, July 20th. Morgan Stanley set a $180.00 price objective on ServiceNow in a report on Tuesday, July 21st. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of ServiceNow in a research report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $145.59.

ServiceNow Trading Up 1.5%

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The business has a 50-day simple moving average of $130.68 and a two-hundred day simple moving average of $111.60. The stock has a market cap of $142.84 billion, a price-to-earnings ratio of 86.34, a P/E/G ratio of 2.47 and a beta of 0.99.

ServiceNow (NYSE:NOW) last issued its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the previous year, the company posted $0.81 EPS. The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. Equities analysts forecast that ServiceNow, Inc. will post 2.22 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the sale, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $135.50, for a total value of $365,850.00. Following the sale, the director owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This represents a 5.78% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 14,081 shares of company stock worth $1,937,904. 0.34% of the stock is owned by insiders.

Institutional Trading of ServiceNow

Hedge funds have recently added to or reduced their stakes in the company. Howard Hughes Medical Institute grew its stake in shares of ServiceNow by 404.5% in the fourth quarter. Howard Hughes Medical Institute now owns 222 shares of the information technology services provider’s stock valued at $34,000 after acquiring an additional 178 shares in the last quarter. Cornerstone Financial Management LLC grew its position in shares of ServiceNow by 72.8% during the 2nd quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 107 shares in the last quarter. CrossGen Wealth LLC acquired a new position in shares of ServiceNow during the 1st quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of ServiceNow by 4,157.1% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 298 shares of the information technology services provider’s stock worth $46,000 after purchasing an additional 291 shares during the period. Finally, Marquette Asset Management LLC raised its position in shares of ServiceNow by 75.0% in the second quarter. Marquette Asset Management LLC now owns 301 shares of the information technology services provider’s stock valued at $30,000 after buying an additional 129 shares in the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.