Wells Fargo & Company Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

ServiceNow (NYSE:NOW) had its price objective reduced by investment analysts at Wells Fargo & Company from $185.00 to $160.00 in a report issued on Thursday,MarketScreener reports. The brokerage currently has an “overweight” rating on the information technology services provider’s stock. Wells Fargo & Company‘s price target indicates a potential upside of 84.53% from the company’s previous close.

Several other research analysts have also commented on the company. BTIG Research reiterated a “buy” rating and set a $185.00 price target on shares of ServiceNow in a report on Monday. Piper Sandler decreased their price target on ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a research note on Thursday. UBS Group downgraded shares of ServiceNow from a “buy” rating to a “neutral” rating and reduced their price target for the company from $170.00 to $100.00 in a research note on Friday, April 10th. Wall Street Zen lowered ServiceNow from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, Macquarie Infrastructure dropped their price objective on ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $155.86.

ServiceNow Price Performance

Shares of ServiceNow stock traded down $16.36 on Thursday, hitting $86.71. 17,589,364 shares of the company were exchanged, compared to its average volume of 20,024,004. 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 company has a 50-day moving average price of $105.55 and a 200 day moving average price of $138.83. The stock has a market capitalization of $89.84 billion, a price-to-earnings ratio of 52.17, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01. ServiceNow has a 1-year low of $81.24 and a 1-year high of $211.48.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting the consensus estimate of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the firm earned $4.04 earnings per share. As a group, sell-side analysts predict that ServiceNow will post 2.49 earnings per share for the current fiscal year.

Insider Activity at ServiceNow

In other ServiceNow news, insider Kevin Thomas Mcbride sold 1,400 shares of ServiceNow stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the sale, the insider owned 26,314 shares of the company’s stock, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Fipps sold 3,696 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total value of $376,141.92. Following the transaction, the insider directly owned 8,061 shares of the company’s stock, valued at approximately $820,367.97. This trade represents a 31.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 16,237 shares of company stock worth $1,697,162 over the last 90 days. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several institutional investors and hedge funds have recently modified their holdings of NOW. Brighton Jones LLC boosted its stake in ServiceNow by 1.1% in the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after purchasing an additional 34 shares in the last quarter. United Bank lifted its position in ServiceNow by 15.5% during the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after acquiring an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. grew its holdings in ServiceNow by 2.2% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock valued at $1,976,000 after purchasing an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC grew its stake in shares of ServiceNow by 205.1% during the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after acquiring an additional 609 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

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.