ServiceNow FY2027 EPS Estimate Reduced by Erste Group Bank

ServiceNow, Inc. (NYSE:NOW) – Investment analysts at Erste Group Bank decreased their FY2027 earnings estimates for ServiceNow in a research note issued to investors on Wednesday, February 18th. Erste Group Bank analyst S. Lingnau now expects that the information technology services provider will post earnings per share of $3.20 for the year, down from their prior estimate of $3.21. The consensus estimate for ServiceNow’s current full-year earnings is $8.93 per share.

Other analysts also recently issued research reports about the company. Truist Financial set a $175.00 price objective on ServiceNow in a report on Thursday, February 5th. UBS Group set a $115.00 target price on shares of ServiceNow in a research report on Thursday, January 29th. Wells Fargo & Company set a $225.00 price target on shares of ServiceNow and gave the company an “overweight” rating in a research report on Thursday, January 8th. TD Cowen decreased their price objective on shares of ServiceNow from $200.00 to $185.00 and set a “buy” rating for the company in a research note on Thursday, January 29th. Finally, Robert W. Baird set a $175.00 price objective on shares of ServiceNow in a research report on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow has an average rating of “Moderate Buy” and a consensus target price of $192.06.

ServiceNow Stock Up 1.6%

Shares of ServiceNow stock opened at $102.46 on Monday. ServiceNow has a 12-month low of $98.00 and a 12-month high of $211.48. The firm has a market capitalization of $107.17 billion, a PE ratio of 61.43, a price-to-earnings-growth ratio of 1.70 and a beta of 0.97. 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 stock’s fifty day moving average is $129.50 and its 200-day moving average is $160.62.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.03. The company had revenue of $3.57 billion for the quarter, compared to analysts’ expectations 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 earned $0.73 earnings per share.

Hedge Funds Weigh In On ServiceNow

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the period. State Street Corp raised its stake in ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after acquiring an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after purchasing an additional 25,517,218 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley raised its position in ServiceNow by 335.6% in the 4th quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after purchasing an additional 17,514,679 shares during the last quarter. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at ServiceNow

In related news, CFO Gina Mastantuono sold 2,075 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $170.00, for a total value of $352,750.00. Following the transaction, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at approximately $10,393,800. This trade represents a 3.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $101.17, for a total transaction of $151,755.00. Following the completion of the transaction, the director directly owned 46,430 shares in the company, valued at approximately $4,697,323.10. This represents a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 19,526 shares of company stock worth $2,467,814 in the last 90 days. Insiders own 0.34% of the company’s stock.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: CEO and insider buying — CEO Bill McDermott plans to buy about $3 million of ServiceNow shares and several executives have cancelled sell plans, a strong signal of management confidence that can support the stock. Read More.
• Positive Sentiment: Large partnership to scale AI adoption — ServiceNow signed a multi‑year deal with Tata Consultancy Services (TCS) to accelerate enterprise AI workflows, which expands sales reach and enterprise deployment potential. Read More.
• Positive Sentiment: Strategic M&A to boost analytics and AI offerings — ServiceNow acquired Pyramid Analytics to strengthen analytics/data‑to‑action capabilities, reinforcing its AI workflow stack and monetization paths. Read More.
• Positive Sentiment: Market narrative around agentic AI — coverage highlighting agentic AI as a 2026 tech trend names ServiceNow as a potential leader, supporting investor interest in the company’s AI roadmap. Read More.
• Neutral Sentiment: Short‑term bounce/rebound — media note the stock is rebounding after Monday’s sell‑off; this reflects technical/flow dynamics rather than new fundamental data. Read More.
• Negative Sentiment: Viral research post on AI risks sparked a sector sell‑off — a widely shared “thought exercise” about AI risk triggered broad weakness in high‑multiple tech and pressured ServiceNow’s valuation and short‑term sentiment. Read More.
• Negative Sentiment: Analyst estimate cut — Erste Group lowered FY2027 EPS estimates for ServiceNow, a reminder that some analysts are trimming forecasts as investors reassess growth and margins, which can weigh on valuation multiple. Read More.

ServiceNow Company Profile

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.