ServiceNow (NYSE:NOW) Shares Up 2.6% – Should You Buy?

ServiceNow, Inc. (NYSE:NOW)’s share price shot up 2.6% during mid-day trading on Thursday . The stock traded as high as $128.73 and last traded at $128.56. 12,910,114 shares were traded during mid-day trading, an increase of 4% from the average session volume of 12,390,042 shares. The stock had previously closed at $125.30.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company pushes AI and partner momentum — ServiceNow announced expansions to its channel and partner programs and deeper OpenAI integration to run agentic AI across workflows, signaling product differentiation and stronger enterprise AI adoption prospects. ServiceNow Beefs Up Channel Program With AI Emphasis ServiceNow Taps OpenAI to Run Agentic AI Across Enterprise Workflows
• Positive Sentiment: Analyst support remains — BTIG reaffirmed a “buy” with a $200 PT (significant upside vs. current levels), providing an institutional positive signal even as other firms adjust targets. BTIG Reaffirms Buy on ServiceNow
• Positive Sentiment: Investor and media attention increased — Jim Cramer mentioned ServiceNow’s earnings and an active investor (Malcolm Ethridge) publicly increased his position, which can attract flows and short-term buying interest. Jim Cramer Mentions ServiceNow Trade Tracker: Malcolm Ethridge buys more ServiceNow
• Neutral Sentiment: Analyst and media coverage intensity — Zacks and other outlets note elevated investor searches and compare NOW to peers (e.g., Adobe), highlighting interest but not offering new fundamental data. Investors Heavily Search ServiceNow
• Negative Sentiment: Several firms trimmed price targets — BMO cut its PT to $175 and Mizuho cut to $190 (both still have positive/Outperform stances), and Citigroup lowered its PT to $235. These reductions reflect more cautious near-term expectations and could weigh on valuation sentiment. BMO Lowers PT on ServiceNow Mizuho Lowers PT on ServiceNow Citigroup Lowers PT on ServiceNow
• Negative Sentiment: Longer-term performance concerns persist — commentary on why NOW underperformed in 2025 (stock split, costly acquisition, investor skepticism) continues to temper enthusiasm and could limit multiple expansion until growth or margin signals improve. Why Stock-Split Stock ServiceNow Slumped in 2025

Wall Street Analyst Weigh In

NOW has been the topic of a number of research reports. Arete Research set a $200.00 target price on shares of ServiceNow in a report on Tuesday, January 6th. Macquarie restated a “neutral” rating and issued a $172.00 price objective on shares of ServiceNow in a report on Thursday, January 8th. JPMorgan Chase & Co. raised their target price on ServiceNow from $204.00 to $215.00 and gave the stock an “overweight” rating in a research report on Thursday, October 30th. Zacks Research lowered ServiceNow from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 11th. Finally, BMO Capital Markets lowered their price objective on ServiceNow from $230.00 to $175.00 and set an “outperform” rating for the company in a research report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $210.69.

ServiceNow Stock Performance

The stock has a market capitalization of $133.50 billion, a P/E ratio of 77.73, a price-to-earnings-growth ratio of 2.16 and a beta of 0.98. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.13. The company has a 50-day moving average price of $155.06 and a two-hundred day moving average price of $174.14.

Insiders Place Their Bets

In related news, Director Lawrence Jackson sold 1,325 shares of the business’s stock in a transaction on Friday, November 28th. The shares were sold at an average price of $162.04, for a total transaction of $214,708.30. Following the transaction, the director owned 1,615 shares in the company, valued at $261,701.06. The trade was a 45.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Fipps sold 1,525 shares of the stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $163.51, for a total transaction of $249,352.75. Following the transaction, the insider directly owned 2,705 shares in the company, valued at approximately $442,294.55. This represents a 36.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 15,310 shares of company stock valued at $2,533,585 in the last 90 days. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Institutional investors have recently made changes to their positions in the stock. Telos Capital Management Inc. grew its stake in shares of ServiceNow by 706.0% in the 4th quarter. Telos Capital Management Inc. now owns 50,940 shares of the information technology services provider’s stock valued at $7,803,000 after buying an additional 44,620 shares during the period. Argus Investors Counsel Inc. raised its stake in ServiceNow by 399.2% during the 4th quarter. Argus Investors Counsel Inc. now owns 8,671 shares of the information technology services provider’s stock worth $1,328,000 after buying an additional 6,934 shares during the period. Richardson Financial Services Inc. boosted its holdings in ServiceNow by 492.1% in the fourth quarter. Richardson Financial Services Inc. now owns 225 shares of the information technology services provider’s stock worth $34,000 after acquiring an additional 187 shares in the last quarter. Massachusetts Financial Services Co. MA grew its stake in ServiceNow by 211.0% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,052,936 shares of the information technology services provider’s stock valued at $161,299,000 after acquiring an additional 714,359 shares during the period. Finally, City Holding Co. grew its stake in ServiceNow by 952.4% in the fourth quarter. City Holding Co. now owns 221 shares of the information technology services provider’s stock valued at $34,000 after acquiring an additional 200 shares during the period. 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.