ServiceNow Target of Unusually Large Options Trading (NYSE:NOW)

ServiceNow, Inc. (NYSE:NOW) was the target of some unusual options trading on Wednesday. Traders bought 52,628 call options on the stock. This represents an increase of approximately 31% compared to the average volume of 40,100 call options.

ServiceNow News Roundup

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat across the board (EPS $0.92 vs. $0.87 est.; revenue ~$3.57B vs. $3.53B) and management issued stronger-than-expected subscription-revenue guidance for 2026 — a direct driver for upside expectations. ServiceNow Q4 Earnings, Revenue Top Estimates Amid Acquisition Spree
• Positive Sentiment: Board authorized an additional $5 billion for share repurchases, which is shareholder‑friendly and typically supports share price over time. ServiceNow Reports Fourth Quarter and Full-Year 2025 Financial Results; Board of Directors Authorizes Additional $5B for Share Repurchase Program
• Positive Sentiment: Expanded AI partnerships (Anthropic, OpenAI) and customer deals (Fiserv, Panasonic Avionics) reinforce ServiceNow’s positioning as an “AI control tower” and support long‑term monetization of AI features. ServiceNow inks another AI partnership, this time with Anthropic
• Positive Sentiment: CEO Bill McDermott bought shares and reaffirmed his long‑term commitment through 2030 — a leadership signal that can calm investor concerns. ServiceNow CEO is sure AI won’t eat software. He’s betting big on his own stock to prove it.
• Neutral Sentiment: Elevated call‑option buying ahead of earnings shows speculative interest and increased short‑term positioning; could amplify moves in either direction. Options Activity / Marketbeat
• Negative Sentiment: Despite the beats, investors are skeptical whether AI will translate into near‑term value for traditional software vendors; the sector’s recent sell‑off and ServiceNow’s rich valuation (high PE) pressured the stock. ServiceNow says AI is ‘really kicking in’ — but it’s not enough to help the stock
• Negative Sentiment: Prominent commentators (e.g., Jim Cramer) expressed uncertainty about the stock’s near‑term outlook, increasing headline risk and encouraging cautious positioning. “I Don’t Know What to do With ServiceNow (NOW),” Says Jim Cramer

Analysts Set New Price Targets

NOW has been the subject of a number of recent research reports. DA Davidson set a $220.00 target price on ServiceNow and gave the stock a “buy” rating in a research report on Tuesday, December 16th. The Goldman Sachs Group lowered ServiceNow from a “buy” rating to a “sell” rating in a research note on Monday, January 12th. Mizuho decreased their target price on ServiceNow from $210.00 to $190.00 and set an “outperform” rating for the company in a research report on Wednesday, January 21st. DZ Bank raised shares of ServiceNow to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Zacks Research downgraded ServiceNow from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 11th. Two research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow presently has a consensus rating of “Moderate Buy” and an average target price of $204.24.

Insider Activity at ServiceNow

In other ServiceNow news, CFO Gina Mastantuono sold 2,085 shares of the firm’s stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $161.60, for a total value of $336,936.00. Following the completion of the transaction, the chief financial officer owned 63,215 shares in the company, valued at $10,215,544. This trade represents a 3.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the firm’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $168.50, for a total transaction of $235,894.40. Following the completion of the transaction, the insider directly owned 25,270 shares of the company’s stock, valued at approximately $4,257,893.92. The trade was a 5.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,310 shares of company stock worth $2,533,585 in the last three months. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several hedge funds have recently modified their holdings of NOW. Kilter Group LLC acquired a new position in ServiceNow during the 2nd quarter valued at about $25,000. IAG Wealth Partners LLC lifted its holdings in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 18 shares during the period. Noble Wealth Management PBC boosted its holdings in ServiceNow by 400.0% during the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 128 shares in the last quarter. Lodestone Wealth Management LLC purchased a new stake in shares of ServiceNow during the 4th quarter worth about $26,000. Finally, Albion Financial Group UT boosted its position in ServiceNow by 400.0% during the fourth quarter. Albion Financial Group UT now owns 170 shares of the information technology services provider’s stock worth $26,000 after purchasing an additional 136 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Price Performance

ServiceNow stock traded down $2.12 during mid-day trading on Wednesday, hitting $129.68. The stock had a trading volume of 20,396,699 shares, compared to its average volume of 13,311,644. The firm has a market capitalization of $134.66 billion, a P/E ratio of 78.41, a P/E/G ratio of 2.35 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 firm’s 50 day moving average is $152.24 and its 200 day moving average is $172.09. ServiceNow has a one year low of $123.78 and a one year high of $234.08.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.87 by $0.05. The company had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a net margin of 13.66% and a return on equity of 18.74%. On average, sell-side analysts forecast that ServiceNow will post 8.93 earnings per share for the current fiscal 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.