ServiceNow (NYSE:NOW) Trading 2.6% Higher – Should You Buy?

ServiceNow, Inc. (NYSE:NOW) shares rose 2.6% during trading on Monday . The stock traded as high as $149.60 and last traded at $148.43. Approximately 25,758,407 shares traded hands during trading, an increase of 10% from the average session volume of 23,484,400 shares. The stock had previously closed at $144.71.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow’s AI business is attracting significant interest: AI-related contracts reportedly surpassed the $1 billion mark, while recent quarterly revenue exceeded expectations and increased 24% year over year. These trends reinforce the investment case that AI is expanding, rather than cannibalizing, demand for enterprise software. ServiceNow Stock Surges Nearly 5% as AI Revenue Reaches $1 Billion Benchmark
• Positive Sentiment: A technical trading signal appeared around $144.84, followed by a recovery toward the session high. Momentum-oriented traders may view the move as confirmation of renewed buying interest in NOW. ServiceNow Stock Up Nearly 3% After Key Trading Signal
• Neutral Sentiment: Analysts and commentators continue comparing ServiceNow with Salesforce and UiPath in the enterprise AI automation market. ServiceNow is viewed as well positioned in workflow and IT automation, but the longer-term winner will depend on how quickly agentic AI adoption translates into profitable consumption and recurring revenue. ServiceNow Versus Salesforce: Who’s Better Positioned to Capitalize on AI? UiPath Versus ServiceNow
• Negative Sentiment: ServiceNow remains expensive, trading at roughly 89–93 times earnings, leaving the stock vulnerable to profit-taking if AI growth, contract expansion, or margin improvement falls short of ambitious expectations. Commentary also highlights the need to monitor the company’s spending as it invests to maintain its AI lead. ServiceNow: Winning the AI Race, Watching Its Wallet
• Negative Sentiment: Early trading pressure reflected broader market weakness and escalating geopolitical tensions, rather than a new company-specific operating problem. Software stocks, including ServiceNow, lagged as energy prices rose following U.S. strikes against Iran. ServiceNow Stock Slips Monday: What’s Going On?

Analyst Ratings Changes

Several research analysts have issued reports on the company. Benchmark reaffirmed a “buy” rating on shares of ServiceNow in a report on Friday, July 17th. Weiss Ratings upgraded ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, August 20th. Needham & Company LLC reaffirmed a “buy” rating and set a $115.00 price target on shares of ServiceNow in a research note on Thursday, July 23rd. Barclays reiterated an “overweight” rating and issued a $134.00 price target (up from $132.00) on shares of ServiceNow in a report on Tuesday, May 5th. Finally, Citigroup reissued a “market outperform” rating on shares of ServiceNow in a report on Thursday, July 23rd. One research 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 given a Sell rating to the stock. According to data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $144.24.

ServiceNow Stock Up 2.6%

The firm has a 50 day simple moving average of $112.33 and a two-hundred day simple moving average of $106.61. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. The stock has a market cap of $153.48 billion, a price-to-earnings ratio of 92.77, a price-to-earnings-growth ratio of 2.55 and a beta of 0.94.

ServiceNow (NYSE:NOW) last posted its earnings results 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 company had revenue of $3.99 billion during the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 EPS. As a group, sell-side analysts expect that ServiceNow, Inc. will post 2.24 EPS for the current year.

Insiders Place Their Bets

In related news, Director Paul Edward Chamberlain sold 2,700 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $135.50, for a total transaction 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.34% of the stock is owned by insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds and other institutional investors have recently made changes to their positions in NOW. California State Teachers Retirement System increased its position in shares of ServiceNow by 9,980.9% in the 2nd quarter. California State Teachers Retirement System now owns 154,496,061 shares of the information technology services provider’s stock valued at $15,338,369,000 after buying an additional 152,963,494 shares in the last quarter. BlackRock Inc. bought a new position in ServiceNow during the second quarter worth about $9,536,615,000. State Street Corp grew its stake in ServiceNow by 406.6% in the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD grew its stake in ServiceNow by 371.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after acquiring an additional 25,517,218 shares during the period. Finally, Geode Capital Management LLC grew its stake in ServiceNow by 404.8% in the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the period. 87.18% of the stock is owned by institutional investors.

ServiceNow Company Profile

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.