ServiceNow (NYSE:NOW) Stock Falls 2.1% – Should You Sell?

Shares of ServiceNow, Inc. (NYSE:NOW) fell 2.1% during mid-day trading on Tuesday. The company traded as low as $152.88 and last traded at $154.8410. Approximately 13,322,388 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 21,297,615 shares. The stock had previously closed at $158.18.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow raised its 2026 artificial-intelligence contract target to $1.7 billion, while subscription revenue increased 20.5% year over year to $3.99 billion. The company also expanded its enterprise AI partnership with OpenAI, supporting AI agents, cybersecurity and governed workflows. ServiceNow: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: New commercial activity provided longer-term support, including a five-year HPE agreement to use ServiceNow for AI-powered support services and the launch of a Control Tower Alliance focused on enterprise AI adoption and governance. HPE selects ServiceNow to transform support services
• Positive Sentiment: Several analysts maintained bullish views after the selloff. Piper Sandler reaffirmed an overweight rating with a $175 target, while Oppenheimer maintained outperform with a $165 target. TD Cowen retained a buy rating despite lowering its target to $160. Piper Sandler ServiceNow rating
• Neutral Sentiment: Third-quarter revenue reached $4.11 billion, ahead of the $4.09 billion consensus, but adjusted EPS was $1.00 versus expectations of $1.02. Revenue growth remained strong, although profitability was pressured by acquisition-related costs. ServiceNow third-quarter earnings report
• Negative Sentiment: The main concern was guidance: fourth-quarter contracted backlog growth is expected to slow to 18.5%, below the 21.5% revenue-growth forecast. Because backlog is an indicator of future subscription revenue, investors viewed the deceleration as evidence of softer demand and greater AI-related disruption risk. ServiceNow guides to slower backlog growth
• Negative Sentiment: Analysts also lowered targets, including UBS to $140, BTIG Research to $150 and Wells Fargo to $175. Concerns about ServiceNow’s $7.52 billion debt load and rising interest costs added pressure to the stock’s valuation and financial-flexibility outlook. ServiceNow debt and interest costs

Wall Street Analysts Forecast Growth

Several research firms recently commented on NOW. Deutsche Bank Aktiengesellschaft boosted their price target on ServiceNow from $135.00 to $155.00 and gave the stock a “buy” rating in a research report on Monday, September 21st. Wells Fargo & Company lowered their price objective on shares of ServiceNow from $190.00 to $175.00 and set an “overweight” rating for the company in a research report on Thursday. KeyCorp reaffirmed an “underweight” rating and issued a $110.00 price objective (up from $85.00) on shares of ServiceNow in a research report on Thursday. Canaccord Genuity Group set a $145.00 price objective on shares of ServiceNow in a research note on Thursday. Finally, Stifel Nicolaus set a $160.00 price objective on shares of ServiceNow and gave the company a “buy” rating in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $154.26.

ServiceNow Stock Performance

The company has a market capitalization of $113.37 billion, a PE ratio of 68.26, a PEG ratio of 2.92 and a beta of 0.99. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company has a 50 day moving average price of $139.55 and a 200 day moving average price of $115.79.

ServiceNow (NYSE:NOW) last issued its quarterly earnings results on Wednesday, October 28th. The information technology services provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.02). The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.09 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The firm’s quarterly revenue was up 20.5% on a year-over-year basis. During the same quarter last year, the firm posted $4.82 EPS. Equities analysts forecast that ServiceNow, Inc. will post 2.23 EPS for the current year.

Insider Buying and Selling

In related news, insider Jacqueline Canney sold 7,847 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the completion of the sale, the insider directly owned 30,042 shares of the company’s stock, valued at $4,145,796. The trade was a 20.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $147.87, for a total value of $300,767.58. Following the sale, the insider owned 18,305 shares in the company, valued at $2,706,760.35. The trade was a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 14,081 shares of company stock worth $1,937,904. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently made changes to their positions in the company. Cornerstone Financial Management LLC grew its holdings in ServiceNow by 72.8% during the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 107 shares during the period. Marquette Asset Management LLC increased its stake in 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 purchasing an additional 129 shares in the last quarter. Kilter Group LLC bought a new position in shares of ServiceNow during the second quarter worth $31,000. Solstein Capital LLC bought a new position in shares of ServiceNow during the second quarter worth $35,000. Finally, Main Street Group LTD acquired a new position in shares of ServiceNow in the 1st quarter valued at $40,000. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Company Profile

ServiceNow, Inc provides cloud-based software designed to help organizations digitize, automate and manage enterprise workflows. Its Now Platform connects people, processes and systems across departments, enabling customers to manage work through a centralized technology environment.

The company’s products and services address a range of business needs, including information technology service management, IT operations management, customer service management, human resources service delivery, security operations, risk and compliance, and application development.