ServiceNow (NYSE:NOW) Shares Up 7% – What’s Next?

ServiceNow, Inc. (NYSE:NOW) was up 7% during mid-day trading on Monday . The stock traded as high as $108.15 and last traded at $105.7110. 32,363,999 shares changed hands during trading, an increase of 35% from the average session volume of 23,966,031 shares. The stock had previously closed at $98.78.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is gaining momentum in agentic AI, with growing customer demand and an expanding product portfolio viewed as potential drivers of long-term revenue growth. Can Agentic AI Adoption Fuel ServiceNow’s Next Phase of Growth?
• Positive Sentiment: Recent coverage highlights that ServiceNow is building an enterprise AI business beyond the hyperscaler market, while its cybersecurity operations could become another significant growth engine. ServiceNow Is Building an AI Business for Enterprises
• Positive Sentiment: Technical traders note that NOW is holding above key moving averages, supporting the recent rebound and suggesting investor confidence may be improving. ServiceNow Stock Holds Above Key Moving Averages
• Positive Sentiment: ServiceNow’s latest quarterly results exceeded EPS and revenue expectations, with revenue up 24% year over year and management raising full-year guidance—important evidence that growth remains resilient despite software-sector concerns. Is the Market Mispricing ServiceNow’s AI Future?
• Positive Sentiment: Enterprise software stocks broadly rebounded as investors rotated back toward AI-related software, providing an additional tailwind for NOW. Software Rebounds on AI Rotation

Analysts Set New Price Targets

A number of brokerages have commented on NOW. Citizens Jmp restated a “market outperform” rating and set a $157.00 price target on shares of ServiceNow in a research note on Tuesday, May 5th. FBN Securities decreased their price target on shares of ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Weiss Ratings lowered ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. BMO Capital Markets upped their price target on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Finally, DA Davidson set a $170.00 price target on ServiceNow and gave the stock a “buy” rating in a report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $143.39.

ServiceNow Stock Performance

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 firm has a market capitalization of $119.62 billion, a PE ratio of 72.18, a P/E/G ratio of 1.86 and a beta of 0.96. The business has a 50-day simple moving average of $104.99 and a 200-day simple moving average of $106.84.

ServiceNow (NYSE:NOW) last announced its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period last year, the firm earned $0.81 earnings per share. ServiceNow’s revenue was up 24.0% compared to the same quarter last year. Equities research analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the sale, the director directly owned 30,090 shares in the company, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director directly owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 19,144 shares of company stock worth $1,730,097. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NOW. Wealth Watch Advisors INC acquired a new stake in ServiceNow during the 3rd quarter worth about $29,000. Kelleher Financial Advisors bought a new stake in ServiceNow in the third quarter valued at about $50,000. Pin Oak Investment Advisors Inc. boosted its position in ServiceNow by 20.7% in the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock valued at $123,000 after buying an additional 23 shares in the last quarter. Jupiter Wealth Management LLC acquired a new stake in ServiceNow in the 2nd quarter valued at about $154,000. Finally, CBIZ Investment Advisory Services LLC raised its holdings in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 135 shares during the last quarter. 87.18% of the stock is owned by institutional investors.

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.