ServiceNow (NYSE:NOW) Stock Price Down 3.5% – Here’s What Happened

ServiceNow, Inc. (NYSE:NOW) shares were down 3.5% during mid-day trading on Thursday . The company traded as low as $91.53 and last traded at $92.1480. Approximately 47,633,826 shares traded hands during mid-day trading, an increase of 99% from the average session volume of 23,881,861 shares. The stock had previously closed at $95.46.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow beat Q2 expectations, posting $0.90 EPS on $3.99 billion in revenue versus estimates of $0.86 and $3.93 billion, signaling resilient demand for its platform.
• Positive Sentiment: The company raised full-year subscription revenue guidance again, helped by accelerating AI-driven bookings and more than $1 billion in AI annual contract value, a key bullish signal for future growth.
• Positive Sentiment: Analysts turned more constructive after the report, with multiple firms lifting price targets and reiterating bullish ratings, suggesting Wall Street sees room for further upside.
• Positive Sentiment: New partnership and adoption news, including expanded customer deployments and training/implementation agreements, supports the view that ServiceNow’s AI platform is gaining traction across enterprise and public-sector clients.
• Neutral Sentiment: Some commentary notes mixed demand and concerns about timing effects in certain deals, so investors are watching whether the strong quarter reflects durable momentum or some one-time benefits.
• Negative Sentiment: Despite the upbeat results, the stock has still been under pressure this year, and investors remain cautious about broader AI disruption risks to enterprise software spending.

Analysts Set New Price Targets

Several brokerages recently commented on NOW. HSBC decreased their price target on ServiceNow from $226.00 to $171.00 and set a “buy” rating on the stock in a research note on Thursday, April 16th. Evercore reissued an “outperform” rating and set a $160.00 price objective on shares of ServiceNow in a report on Thursday. Citizens Jmp reissued a “market outperform” rating and issued a $157.00 target price on shares of ServiceNow in a research note on Tuesday, May 5th. Wolfe Research set a $125.00 price target on shares of ServiceNow in a research report on Thursday, April 23rd. Finally, Bank of America initiated coverage on ServiceNow in a report on Monday, May 18th. They issued a “buy” rating and a $130.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $143.39.

ServiceNow Stock Down 3.5%

The firm has a market capitalization of $95.00 billion, a P/E ratio of 54.92, a PEG ratio of 1.71 and a beta of 0.96. The firm’s 50 day moving average is $104.67 and its two-hundred day moving average is $108.16. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.84 and a quick ratio of 0.84.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The company’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter last year, the company posted $0.81 earnings per share. Research analysts predict that ServiceNow, Inc. will post 2.33 EPS for the current year.

Insider Activity

In related news, Director Anita M. Sands sold 16,445 shares of ServiceNow stock in a transaction dated Thursday, May 14th. The stock was 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 in the company, valued at approximately $2,712,312.60. This trade represents a 35.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred on 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 directly owned 44,930 shares in the company, valued at approximately $3,919,243.90. This trade represents a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,071 shares of company stock valued at $2,529,956 in the last 90 days. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in ServiceNow by 404.5% during the 4th 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 raised its position in shares of ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after purchasing an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in shares of ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after buying an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of ServiceNow by 404.8% during the 4th quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the period. Finally, Morgan Stanley grew its stake in ServiceNow by 335.6% in 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 institutional investors and hedge funds.

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.