ServiceNow (NYSE:NOW) Stock Price Down 6.4% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW) shares were down 6.4% during mid-day trading on Wednesday . The company traded as low as $94.74 and last traded at $95.4950. 39,594,186 shares were traded during trading, an increase of 67% from the average session volume of 23,651,711 shares. The stock had previously closed at $102.06.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow posted Q2 EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion versus $3.93 billion expected, with subscription revenue up 24.5% year over year. ServiceNow Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its annual subscription revenue forecast again, signaling that AI-driven demand is translating into better growth visibility and a larger pipeline. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: AI contract value crossed the $1 billion mark, and several analysts lifted price targets after the beat, reinforcing confidence that ServiceNow can monetize its AI platform. ServiceNow Beats on Q2 Earnings, Raises Full-Year Subscription Outlook
• Positive Sentiment: New and expanded partnerships, including with Experian, Leidos, and TeamViewer, suggest broader adoption of the ServiceNow AI Platform across enterprise and public-sector customers. Experian accelerates AI-first experiences with ServiceNow AI Platform
• Neutral Sentiment: Analysts remain constructive overall, but some commentary points to mixed demand and a stock that had already been under pressure before earnings, so sentiment may stay volatile. NOW Stock Draws Price Target Hikes After Q2 Beat – Bernstein Sees ‘Relief’ While UBS Warns Of ‘Mixed Demand’
• Negative Sentiment: Earlier in the day, shares were pressured by renewed fears that OpenAI and other AI tools could disrupt legacy workflow software, but the earnings report helped counter that narrative. ServiceNow Stock Slides: What’s Happening Today?

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on NOW. Benchmark reiterated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. HSBC reduced their price objective on shares of ServiceNow from $226.00 to $171.00 and set a “buy” rating for the company in a research note on Thursday, April 16th. JPMorgan Chase & Co. boosted their price target on ServiceNow from $145.00 to $150.00 and gave the stock an “overweight” rating in a research report on Thursday. Bank of America initiated coverage on ServiceNow in a report on Monday, May 18th. They issued a “buy” rating and a $130.00 target price for the company. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $130.00 price objective on shares of ServiceNow in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $143.39.

ServiceNow Trading Down 3.5%

The company has a market cap of $95.00 billion, a price-to-earnings ratio of 57.59, a PEG ratio of 1.60 and a beta of 0.96. The business’s 50 day moving average price is $104.70 and its 200-day moving average price is $107.77. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.

ServiceNow (NYSE:NOW) last posted 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 16.63% and a net margin of 11.34%.The business had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same quarter last year, the company earned $0.81 EPS. ServiceNow’s revenue was up 24.0% on a year-over-year basis. On average, research analysts forecast that ServiceNow, Inc. will post 2.33 EPS for the current year.

Insider Activity at ServiceNow

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director owned 44,930 shares in the company, valued at $3,919,243.90. This trade represents a 3.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This trade represents a 7.99% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 19,144 shares of company stock valued at $1,730,097 over the last ninety days. 0.34% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Wedge Capital Management L L P NC increased its position in shares of ServiceNow by 5.4% in the 2nd quarter. Wedge Capital Management L L P NC now owns 2,512 shares of the information technology services provider’s stock valued at $249,000 after buying an additional 129 shares in the last quarter. Investors Research Corp boosted its holdings in shares of ServiceNow by 787.2% in the second quarter. Investors Research Corp now owns 7,674 shares of the information technology services provider’s stock valued at $762,000 after buying an additional 6,809 shares during the period. Tema ETFs LLC increased its position in shares of ServiceNow by 10.0% during the second quarter. Tema ETFs LLC now owns 20,679 shares of the information technology services provider’s stock worth $2,053,000 after acquiring an additional 1,885 shares in the last quarter. Canvas Wealth Advisors LLC increased its position in shares of ServiceNow by 60.7% during the second quarter. Canvas Wealth Advisors LLC now owns 28,524 shares of the information technology services provider’s stock worth $2,832,000 after acquiring an additional 10,773 shares in the last quarter. Finally, Fiduciary Financial Group LLC acquired a new stake in shares of ServiceNow during the second quarter worth $404,000. Institutional investors and hedge funds own 87.18% of the company’s stock.

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.