ServiceNow (NYSE:NOW) Stock Price Down 2% Following Analyst Downgrade

ServiceNow, Inc. (NYSE:NOW)’s stock price fell 2% during trading on Thursday after Stifel Nicolaus lowered their price target on the stock from $180.00 to $135.00. Stifel Nicolaus currently has a buy rating on the stock. ServiceNow traded as low as $98.46 and last traded at $101.9770. 16,551,624 shares were traded during mid-day trading, a decline of 12% from the average session volume of 18,755,967 shares. The stock had previously closed at $104.04.

NOW has been the subject of a number of other research reports. Argus upgraded ServiceNow to a “strong-buy” rating in a research note on Wednesday, February 4th. Robert W. Baird set a $175.00 price target on ServiceNow in a research report on Thursday, January 29th. Wells Fargo & Company decreased their price target on ServiceNow from $225.00 to $185.00 and set an “overweight” rating for the company in a report on Tuesday. BTIG Research reaffirmed a “buy” rating and issued a $200.00 price objective on shares of ServiceNow in a research report on Thursday, January 29th. Finally, UBS Group set a $115.00 price objective on shares of ServiceNow in a research note on Thursday, January 29th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus price target of $188.59.

Insiders Place Their Bets

In other ServiceNow news, insider Kevin Thomas Mcbride sold 1,400 shares of the company’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider directly owned 26,314 shares of the company’s stock, valued at $2,781,652.94. This represents a 5.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Paul Fipps sold 3,696 shares of the firm’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $101.77, for a total transaction of $376,141.92. Following the sale, the insider directly owned 8,061 shares of the company’s stock, valued at $820,367.97. The trade was a 31.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,237 shares of company stock worth $1,697,162 in the last three months. 0.34% of the stock is owned by insiders.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Expanded AI partnership with NVIDIA to operationalize the “Autonomous Workforce,” which supports ServiceNow’s AI go‑to‑market and could accelerate monetization of platform AI capabilities. ServiceNow (NOW) Expands Partnership With NVIDIA
• Positive Sentiment: Armis acquisition framed as strengthening ServiceNow’s core platform and security posture — a strategic tuck‑in that could deepen enterprise stickiness. ServiceNow’s Deal May Be Bigger Than It Looks
• Positive Sentiment: Raised liquidity: ServiceNow entered a $3 billion unsecured revolving credit facility (and CP programs), improving balance‑sheet flexibility ahead of earnings. ServiceNow Boosts Liquidity With New Credit and CP Programs
• Positive Sentiment: Benchmark initiated coverage with a Buy and $125 target, arguing the selloff offers a long‑term entry point. Benchmark Initiates at Buy with $125 PT
• Positive Sentiment: Morgan Stanley maintained a Buy rating and high $210 target, signaling some analysts still view upside based on AI monetization and organic growth. Morgan Stanley Maintains Buy
• Positive Sentiment: BigPanda announced a certified app and partnership to integrate event intelligence and incident automation into ServiceNow, extending platform ecosystem. BigPanda Partners with ServiceNow
• Neutral Sentiment: ServiceNow set its Q1 2026 earnings release for April 22 — a near‑term catalyst that could move the stock depending on guidance and federal‑spending exposure. Q1 2026 Results Date
• Neutral Sentiment: Regional leadership hire: Kulmeet Bawa named MD & Group VP for India & SAARC — operationally positive but unlikely to move the stock meaningfully. Kulmeet Bawa Appointment
• Neutral Sentiment: Wells Fargo trimmed its price target (maintained Overweight), and Zacks/market pieces highlight heavy media attention — mixed signals that keep volatility high. Wells Fargo Target Cut
• Negative Sentiment: Stifel cut its price target sharply from $180 to $135 (still a Buy), citing weaker federal spending and near‑term headwinds — a downgrade that likely weighs on investor sentiment. Stifel Lowers PT to $135
• Negative Sentiment: Coverage highlighting federal spending concerns and rising competitive/A I‑native threats is driving short‑term pressure; several articles note large YTD/6‑month declines, increasing downside momentum. Federal Spending Concerns
• Negative Sentiment: Critical analysis arguing ServiceNow may have to sell AI tools that could reduce switching costs for customers, raising long‑term competitive risk concerns. Fool: AI Could Lower Switching Costs

Hedge Funds Weigh In On ServiceNow

Large investors have recently modified their holdings of the stock. J. Derek Lewis & Associates Inc. bought a new stake in ServiceNow in the fourth quarter valued at about $238,000. Stance Capital LLC lifted its holdings in ServiceNow by 456.7% during the 4th quarter. Stance Capital LLC now owns 8,050 shares of the information technology services provider’s stock worth $1,233,000 after buying an additional 6,604 shares during the last quarter. Rockefeller Capital Management L.P. grew its position in shares of ServiceNow by 649.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 515,470 shares of the information technology services provider’s stock worth $78,965,000 after acquiring an additional 446,667 shares in the last quarter. Bank of New Hampshire grew its position in shares of ServiceNow by 401.9% in the 4th quarter. Bank of New Hampshire now owns 9,275 shares of the information technology services provider’s stock worth $1,421,000 after acquiring an additional 7,427 shares in the last quarter. Finally, Fund Advisors of America Inc FL bought a new stake in shares of ServiceNow in the 4th quarter valued at approximately $507,000. Institutional investors own 87.18% of the company’s stock.

ServiceNow Stock Down 2.0%

The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market capitalization of $106.67 billion, a P/E ratio of 61.14, a P/E/G ratio of 1.75 and a beta of 1.00. The stock has a fifty day moving average price of $111.59 and a two-hundred day moving average price of $148.31.

ServiceNow (NYSE:NOW) last announced its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03. The firm had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.53 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm’s revenue for the quarter was up 20.7% on a year-over-year basis. During the same period last year, the business posted $0.73 earnings per share. Research analysts forecast that ServiceNow, Inc. will post 8.93 EPS for the current year.

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.