ServiceNow (NYSE:NOW) Shares Up 2.8% – What’s Next?

Shares of ServiceNow, Inc. (NYSE:NOW) traded up 2.8% during mid-day trading on Thursday. The stock traded as high as $140.80 and last traded at $137.7720. 10,130,023 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 22,204,002 shares. The stock had previously closed at $134.01.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Accenture’s quarterly earnings beat and fiscal 2027 revenue outlook above analyst expectations lifted sentiment across software stocks, providing a read-through that enterprise technology spending remains resilient. ServiceNow Rallies as Accenture Earnings Lift Software Stocks
• Positive Sentiment: ServiceNow was identified as a potential leader in the next phase of the AI trade by Deutsche Bank analysts. The company’s workflow platform, broad Fortune 500 presence and growing AI capabilities support the bullish view. Meta, ServiceNow and these 7 other tech stocks could lead the next leg of the AI trade
• Positive Sentiment: Nvidia CEO Jensen Huang’s view that ServiceNow is “destined to be the best platform” for enterprise AI reinforced investor confidence in the company’s long-term positioning. Recent company materials also cited more than $1 billion in AI annual contract value. This AI Stock May Be the Biggest Winner as Enterprise AI Takes Off
• Positive Sentiment: Analysts and market commentators described NOW as rebuilding an uptrend after an earlier selloff, potentially making the stock more attractive than AI names trading at record highs. Its latest reported quarter also featured revenue growth of 24% and an earnings beat.
• Neutral Sentiment: ServiceNow’s fundamentals remain strong, but investors are weighing whether its elevated valuation is justified by future AI-driven earnings growth. Why It’s Time to Load Up on ServiceNow Stock
• Negative Sentiment: Concerns about AI disruption, slower near-term deal activity and reported AI-related security issues remain risks to growth and valuation. In addition, recent insider activity showed sales with no disclosed purchases, which may temper enthusiasm.

Wall Street Analyst Weigh In

NOW has been the subject of several research reports. Robert W. Baird lifted their target price on ServiceNow from $118.00 to $125.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. KeyCorp restated an “underweight” rating on shares of ServiceNow in a report on Tuesday, July 21st. Guggenheim raised shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 target price on the stock in a research note on Wednesday, July 1st. Benchmark reiterated a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Finally, UBS Group set a $248.00 price target on shares of ServiceNow in a research report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have issued a Hold rating and two have issued 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 $147.00.

ServiceNow Stock Up 2.8%

The firm’s fifty day simple moving average is $128.45 and its 200 day simple moving average is $111.16. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a market cap of $142.46 billion, a price-to-earnings ratio of 86.11, a PEG ratio of 2.39 and a beta of 0.97.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The company’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.81 EPS. Sell-side analysts predict that ServiceNow, Inc. will post 2.22 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Paul Chamberlain sold 2,700 shares of the firm’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $135.50, for a total transaction of $365,850.00. Following the sale, the director owned 43,990 shares of the company’s stock, valued at approximately $5,960,645. This trade represents a 5.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline P. Canney sold 7,847 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $138.00, for a total value of $1,082,886.00. Following the sale, the insider directly owned 30,042 shares in the company, valued at $4,145,796. This trade represents a 20.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,081 shares of company stock valued at $1,937,904 in the last ninety days. Insiders own 0.34% of the company’s stock.

Institutional Trading of ServiceNow

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. A. D. Beadell Investment Counsel Inc. grew its position in shares of ServiceNow by 2.9% in the second quarter. A. D. Beadell Investment Counsel Inc. now owns 2,818 shares of the information technology services provider’s stock valued at $279,000 after purchasing an additional 80 shares during the last quarter. Atwood & Palmer Inc. boosted its holdings in shares of ServiceNow by 20.0% in the 2nd quarter. Atwood & Palmer Inc. now owns 600 shares of the information technology services provider’s stock worth $60,000 after acquiring an additional 100 shares in the last quarter. Capital Advisors Ltd. LLC raised its position in ServiceNow by 25.2% in the 1st quarter. Capital Advisors Ltd. LLC now owns 516 shares of the information technology services provider’s stock valued at $54,000 after purchasing an additional 104 shares during the last quarter. Cornerstone Financial Management LLC increased its stake in shares of ServiceNow by 72.8% in the second quarter. Cornerstone Financial Management LLC now owns 254 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 107 shares in the last quarter. Finally, Symphony Financial Ltd. Co. grew its holdings in ServiceNow by 1.5% during the 2nd quarter. Symphony Financial Ltd. Co. now owns 7,584 shares of the information technology services provider’s stock worth $757,000 after acquiring an additional 115 shares during the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

About ServiceNow

ServiceNow, Inc is a cloud-based enterprise software company that helps organizations digitize, automate and manage workflows. Its platform connects people, processes and systems across departments, enabling businesses to replace manual, disconnected activities with standardized digital workflows.

The company’s products and services support a range of functions, including information technology service management, IT operations management, customer service, human resources, risk and security operations, and software development.