ServiceNow (NYSE:NOW) Stock Price Down 7.7% – Should You Sell?

ServiceNow, Inc. (NYSE:NOW) fell 7.7% on Wednesday . The stock traded as low as $117.34 and last traded at $117.86. 33,081,155 shares changed hands during trading, an increase of 39% from the average session volume of 23,835,639 shares. The stock had previously closed at $127.65.

ServiceNow News Summary

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow is deepening its AI governance story through a partnership with Cognizant, which is integrating Neuro AI Trust with ServiceNow’s AI Control Tower to provide real-time oversight, compliance automation, and incident response for enterprise AI deployments. Cognizant Tie Up Puts ServiceNow At Center Of AI Governance Story
• Positive Sentiment: Analyst sentiment remains constructive, with William Blair reiterating a Buy rating and pointing to accelerating AI adoption, model-agnostic architecture, and a path toward $30 billion in revenue by 2030. ServiceNow Earns Buy Rating on Accelerating AI Adoption, Model-Agnostic Architecture, and Path to $30B Revenue by 2030
• Positive Sentiment: ServiceNow’s EmployeeWorks offering is being highlighted as a potential growth driver, with reports of rapid traction, larger enterprise deals, and expanding AI adoption across customers. Can EmployeeWorks Become a Major Growth Driver for ServiceNow?
• Positive Sentiment: A broader industry forecast shows the cloud IT service management market growing rapidly through 2031, driven by automation, hybrid work, and standardized service management frameworks—supportive demand trends for ServiceNow’s core business. Cloud ITSM Market Size by Solution Type, Deployment Mode – Global Forecast to 2031
• Neutral Sentiment: ServiceNow also expanded its AI-driven workflow and incident-response ecosystem by deepening its partnership with Everbridge’s xMatters platform, reinforcing its platform strategy but without a clearly quantified financial impact yet. ServiceNow Deepens Everbridge xMatters AI Ties In Critical Workflows
• Neutral Sentiment: Several conference presentations and valuation commentaries kept ServiceNow in the spotlight, but these were mostly reiterations of the company’s AI and growth narrative rather than fresh catalysts. ServiceNow, Inc. (NOW) Presents at 2026 Evercore Global TMT Conference Transcript

Wall Street Analysts Forecast Growth

NOW has been the topic of a number of analyst reports. Piper Sandler lowered their price objective on ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. Capital One Financial upped their target price on ServiceNow from $105.00 to $120.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 5th. Canaccord Genuity Group lowered their price target on ServiceNow from $200.00 to $145.00 and set a “buy” rating on the stock in a report on Thursday, April 23rd. Barclays restated an “overweight” rating and issued a $134.00 price objective (up from $132.00) on shares of ServiceNow in a research note on Tuesday, May 5th. Finally, FBN Securities lowered their target price on shares of ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $141.85.

ServiceNow Stock Performance

The firm has a market capitalization of $120.65 billion, a P/E ratio of 69.83, a P/E/G ratio of 1.95 and a beta of 0.94. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84. The stock’s 50 day moving average is $99.29 and its two-hundred day moving average is $122.10.

ServiceNow (NYSE:NOW) last posted its quarterly earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The firm’s quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.81 EPS. As a group, equities analysts anticipate that ServiceNow, Inc. will post 2.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider directly owned 29,531 shares in the company, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the director owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 28,071 shares of company stock worth $2,529,956. Company insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Institutional investors have recently added to or reduced their stakes in the stock. IAG Wealth Partners LLC lifted its holdings in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 18 shares in the last quarter. Noble Wealth Management PBC grew its holdings in shares of ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 128 shares in the last quarter. Millstone Evans Group LLC raised its position in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC lifted its stake in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 135 shares in the last quarter. Finally, Blueline Advisors LLC bought a new stake in ServiceNow in the 4th quarter valued at approximately $25,000. 87.18% of the stock is owned by institutional investors.

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.