ServiceNow (NYSE:NOW) Shares Up 3.4% – Time to Buy?

ServiceNow, Inc. (NYSE:NOW) was up 3.4% during trading on Wednesday. The stock traded as high as $135.08 and last traded at $134.3090. Approximately 8,964,147 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 22,276,039 shares. The stock had previously closed at $129.94.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: New AI product launch: ServiceNow introduced Flow by ServiceNow, a conversational, AI-native service desk that can be deployed within a day without infrastructure requirements. The launch reinforces the company’s effort to make AI adoption easier for enterprise customers. Why ServiceNow Stock Is Up Today
• Positive Sentiment: AI revenue expectations remain strong: ServiceNow’s hybrid seat- and consumption-based pricing, including AI “assist packs,” is supporting annual contract value growth. One analysis expects AI ACV to reach approximately $1.5 billion by year-end, while management sees AI representing roughly 30% of total ACV by 2030. ServiceNow Still a Strong Buy as AI Revenues Gain Traction
• Positive Sentiment: Favorable Wall Street and industry signals: Deutsche Bank selected ServiceNow as a potential leader in the next phase of the AI trade. Shares also benefited from Accenture’s earnings beat and above-expectation fiscal 2027 revenue outlook, which helped lift sentiment across software stocks. Deutsche Bank Picks Meta and ServiceNow for Next AI Trade Leg
• Positive Sentiment: Fundamentals and market positioning: ServiceNow recently exceeded quarterly EPS and revenue estimates, with revenue up 24% year over year. Analysts view its deeply embedded workflow platform and presence across large enterprises as a competitive advantage in enterprise AI. This AI Stock May Be the Biggest Winner as Enterprise AI Takes Off
• Neutral Sentiment: The recent advance also reflects a recovery after a sharp software-sector selloff. While the rebound improves momentum, the stock’s elevated valuation means continued gains likely depend on AI bookings and revenue growth meeting ambitious expectations. ServiceNow Rises as Investors Reassess Recent Selloff and AI Growth Story
• Negative Sentiment: Risks include reported security concerns, possible delays in enterprise deal activity and valuation pressure. Recent insider activity has also consisted of sales rather than open-market purchases, which may weigh on investor sentiment.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NOW. The Goldman Sachs Group reaffirmed a “buy” rating on shares of ServiceNow in a report on Monday, August 3rd. Robert W. Baird raised their price objective on shares of ServiceNow from $118.00 to $125.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. UBS Group set a $248.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. Weiss Ratings upgraded shares of ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, August 20th. Finally, Piper Sandler reissued an “overweight” rating and issued a $140.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $147.00.

ServiceNow Stock Up 2.8%

The company has a market cap of $142.46 billion, a PE ratio of 86.11, a price-to-earnings-growth ratio of 2.46 and a beta of 0.99. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company has a fifty day moving average of $129.37 and a two-hundred day moving average of $111.33.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate 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 11.34% and a return on equity of 16.45%. The company’s revenue was up 24.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.81 EPS. As a group, analysts anticipate that ServiceNow, Inc. will post 2.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jacqueline P. Canney sold 7,847 shares of the business’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $138.00, for a total transaction of $1,082,886.00. Following the completion of the transaction, the insider directly owned 30,042 shares of the company’s stock, valued at $4,145,796. The trade was a 20.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul Fipps sold 2,034 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $147.87, for a total transaction of $300,767.58. Following the completion of the transaction, the insider directly owned 18,305 shares in the company, valued at $2,706,760.35. This trade represents a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 14,081 shares of company stock valued at $1,937,904 in the last 90 days. 0.34% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NOW. Defender Capital LLC. purchased a new stake in ServiceNow in the third quarter valued at approximately $268,000. First Financial Bank Trust Division bought a new position in shares of ServiceNow during the third quarter valued at approximately $5,511,000. Greenwich Wealth Management LLC grew its position in shares of ServiceNow by 5.2% during the second quarter. Greenwich Wealth Management LLC now owns 5,816 shares of the information technology services provider’s stock worth $577,000 after acquiring an additional 290 shares during the last quarter. QRG Capital Management Inc. raised its holdings in shares of ServiceNow by 6.8% during the second quarter. QRG Capital Management Inc. now owns 132,947 shares of the information technology services provider’s stock valued at $13,199,000 after buying an additional 8,486 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. raised its position in shares of ServiceNow by 61.8% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 52,800 shares of the information technology services provider’s stock worth $5,242,000 after buying an additional 20,173 shares in the last quarter. Hedge funds and other institutional investors 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.