ServiceNow (NYSE:NOW) Stock Gets Price Target Boost from Royal Bank Of Canada

ServiceNow (NYSE:NOW) had its price target increased by equities researchers at Royal Bank Of Canada from $130.00 to $176.00 in a research note issued to investors on Monday, MarketBeat Ratings reports. The brokerage presently has an “outperform” rating on the information technology services provider’s stock. Royal Bank Of Canada’s target price would indicate a potential upside of 27.23% from the stock’s previous close.

Other equities analysts also recently issued research reports about the company. DA Davidson set a $170.00 target price on ServiceNow and gave the stock a “buy” rating in a research report on Monday, July 20th. Deutsche Bank Aktiengesellschaft upped their price target on ServiceNow from $135.00 to $155.00 and gave the company a “buy” rating in a research report on Monday, September 21st. Sanford C. Bernstein reiterated an “outperform” rating on shares of ServiceNow in a research report on Wednesday, September 9th. Oppenheimer reiterated an “outperform” rating and set a $140.00 price objective (up from $130.00) on shares of ServiceNow in a research note on Wednesday, July 15th. Finally, JPMorgan Chase & Co. lifted their price objective on ServiceNow from $145.00 to $150.00 and gave the company an “overweight” rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $149.20.

ServiceNow Stock Down 1.4%

Shares of NOW opened at $138.33 on Monday. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43. The company has a 50-day moving average price of $133.78 and a two-hundred day moving average price of $112.87. The stock has a market cap of $143.04 billion, a price-to-earnings ratio of 73.54, a P/E/G ratio of 2.58 and a beta of 0.99. ServiceNow has a 12 month low of $81.24 and a 12 month high of $192.97.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the prior year, the company posted $0.81 EPS. The company’s revenue was up 24.0% compared to the same quarter last year. Equities analysts predict that ServiceNow will post 2.22 EPS for the current fiscal year.

Insider Transactions at ServiceNow

In other news, Director Paul Chamberlain sold 2,700 shares of ServiceNow stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total value of $365,850.00. Following the completion of the transaction, the director owned 43,990 shares in the company, valued at approximately $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jacqueline Canney sold 7,847 shares of ServiceNow stock in a transaction that occurred on Friday, August 28th. The shares were 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 owned 30,042 shares of the company’s stock, 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. Over the last 90 days, insiders sold 14,081 shares of company stock valued at $1,937,904. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On ServiceNow

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in ServiceNow during the 2nd quarter worth about $9,536,615,000. State Street Corp grew its holdings in ServiceNow by 2.0% during the 2nd quarter. State Street Corp now owns 49,038,218 shares of the information technology services provider’s stock worth $4,868,514,000 after acquiring an additional 979,726 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in ServiceNow by 16.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 16,638,071 shares of the information technology services provider’s stock valued at $1,651,828,000 after acquiring an additional 2,362,606 shares in the last quarter. Amundi increased its position in ServiceNow by 60.9% in the 1st quarter. Amundi now owns 11,479,098 shares of the information technology services provider’s stock valued at $1,200,140,000 after acquiring an additional 4,346,722 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its position in ServiceNow by 6.5% in the 1st quarter. Bank of New York Mellon Corp now owns 8,526,931 shares of the information technology services provider’s stock valued at $891,491,000 after acquiring an additional 518,263 shares in the last quarter. Institutional investors own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts remain optimistic ahead of third-quarter results. Oppenheimer said channel checks point to a favorable Q3 outcome, while another analyst identified ServiceNow as a top software pick with potential revenue acceleration into fiscal 2027 as AI, security and usage-based products expand. ServiceNow Positioned to Deliver Favorable Business Outcome in Q3 Analyst Calls ServiceNow a Top Software Pick
• Positive Sentiment: Royal Bank of Canada raised its ServiceNow price target to $176 from $130 and maintained an Outperform rating. BTIG also reaffirmed its Buy rating with a $170 target, providing evidence of continued Wall Street confidence. ServiceNow Stock Gets Price Target Increase from Royal Bank of Canada
• Positive Sentiment: ServiceNow’s AI business continues to gain traction, with enterprise demand, AI-powered workflows and products such as Flow viewed as potential sources of a new billion-dollar growth engine. The company continues to report revenue growth above 20%, including 24% growth in its latest reported quarter. Prediction: ServiceNow Could Be Building Its Next Billion-Dollar Growth Engine
• Neutral Sentiment: AI-agent startup Decagon reportedly held early acquisition discussions with ServiceNow and other companies. Any deal could strengthen ServiceNow’s AI capabilities, but the talks are preliminary and no transaction has been announced. AI agent company Decagon held early M&A talks with ServiceNow
• Negative Sentiment: Valuation remains the central risk. With a market value near $139 billion, investors increasingly need ServiceNow’s strong AI-led growth to produce substantially higher free cash flow before the shares appear inexpensive. ServiceNow Is Growing 24%, but Can Cash Flow Justify Its Valuation?
• Negative Sentiment: Despite 24% revenue growth, earnings reportedly fell 22.6% as ServiceNow increased sales and engineering spending to support AI and workflow expansion. That investment may weigh on near-term margins and raise questions about where the revenue growth is translating into profit. ServiceNow Grew Revenue 24% While Earnings Fell
• Negative Sentiment: Broader technology stocks weakened late in the session, creating an additional sector-level headwind for NOW shares. Sector Update: Tech Stocks Softer Late Afternoon

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.