ServiceNow (NYSE:NOW) Shares Gap Up – Still a Buy?

ServiceNow, Inc. (NYSE:NOW)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $99.28, but opened at $103.60. ServiceNow shares last traded at $103.5280, with a volume of 4,921,560 shares trading hands.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Guggenheim upgraded ServiceNow to Buy from Neutral and set a $125 price target, arguing that fears about AI disruption have likely gone too far and that the stock now looks attractively valued after a steep selloff. Article title: ServiceNow (NOW) Rating Upgraded by Guggenheim to Buy from Neutral
• Positive Sentiment: Multiple follow-up reports said the upgrade helped lift ServiceNow shares, with Guggenheim’s view that recent weakness created a buying opportunity for software investors. Article title: Guggenheim Sees 45%+ Upside After Upgrading Salesforce, ServiceNow, Check Point
• Positive Sentiment: ServiceNow also announced a joint initiative with Accenture to modernize enterprise risk management using agentic AI, reinforcing the company’s positioning as an AI workflow and security platform rather than an AI casualty. Article title: Accenture (ACN), ServiceNow (NOW) Launch Joint Initiative to Modernize Enterprise Risk Management With Agentic AI
• Neutral Sentiment: Several analysts and commentary pieces noted that ServiceNow still trades at a premium valuation, so while growth and enterprise AI adoption remain supportive, investors are being reminded that the stock is not cheap. Article title: ServiceNow Trades at Premium Valuation: How to Play the Stock
• Neutral Sentiment: ServiceNow said it will report second-quarter 2026 results on July 22, which keeps attention on whether growth and margins can hold up after the recent volatility. Article title: ServiceNow to Announce Second Quarter 2026 Financial Results on July 22
• Negative Sentiment: Bearish articles continued to highlight risks from AI disruption, slower large-deal closures, acquisition-related margin pressure, and premium valuation, all of which could limit upside if execution disappoints. Article title: ServiceNow Stock Plunges 50% — Why NOW Stock Is a Buy Here

Analyst Ratings Changes

Several equities analysts recently issued reports on NOW shares. Piper Sandler reduced their price objective on shares of ServiceNow from $200.00 to $140.00 and set an “overweight” rating on the stock in a research note on Thursday, April 23rd. Jefferies Financial Group reissued a “buy” rating and set a $135.00 price target (down from $175.00) on shares of ServiceNow in a research note on Thursday, April 23rd. Morgan Stanley decreased their price objective on ServiceNow from $210.00 to $180.00 and set an “overweight” rating on the stock in a report on Thursday, April 23rd. Wolfe Research set a $125.00 target price on ServiceNow in a research note on Thursday, April 23rd. Finally, UBS Group reiterated an “outperform” rating on shares of ServiceNow in a research report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, ServiceNow presently has a consensus rating of “Moderate Buy” and an average price target of $141.68.

ServiceNow Price Performance

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 company has a market cap of $109.34 billion, a PE ratio of 63.20, a P/E/G ratio of 1.76 and a beta of 0.96. The company has a 50-day moving average price of $100.47 and a two-hundred day moving average price of $112.93.

ServiceNow (NYSE:NOW) last announced its 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. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same period last year, the business posted $0.81 EPS. The company’s revenue was up 22.1% on a year-over-year basis. Sell-side analysts expect that ServiceNow, Inc. will post 2.34 earnings per share for the current fiscal year.

Insider Activity

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the business’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider owned 29,531 shares in the company, valued at $2,645,977.60. The trade was a 23.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the completion of the transaction, the director directly owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. The trade was 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. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last ninety days. 0.34% of the stock is owned by company insiders.

Institutional Trading of ServiceNow

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