ServiceNow (NYSE:NOW) Stock Price Down 1.1% – Time to Sell?

by · The Markets Daily

ServiceNow, Inc. (NYSE:NOW – Get Free Report)’s stock price fell 1.1% during mid-day trading on Tuesday. The company traded as low as $128.12 and last traded at $130.0540. Approximately 9,726,249 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 22,345,693 shares. The stock had previously closed at $131.45.

Key Headlines Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

  • Positive Sentiment: ServiceNow was included as a partner in Fortune’s expanded 2026 AIQ 75 ranking, which recognizes companies converting AI investments into business results. The association reinforces ServiceNow’s visibility as an enterprise AI platform provider, although it does not represent a new contract or financial forecast. Fortune AIQ 75 announcement
  • Positive Sentiment: Analysts continue to identify ServiceNow as an AI beneficiary because of its expanding workflow and agentic-AI offerings. Recent commentary highlights the company’s faster growth relative to Salesforce and strong demand for AI agents, though ServiceNow’s premium valuation remains an important consideration. AI software winners analysis
  • Positive Sentiment: ServiceNow announced a partnership with Reco to add AI-agent security controls, visibility and continuous monitoring to the ServiceNow AI Platform. The agreement could strengthen the platform’s appeal as enterprises look for governance and security tools before deploying autonomous AI agents at scale. Reco partnership announcement
  • Neutral Sentiment: A broader market debate is developing over whether AI spending will benefit established software vendors such as ServiceNow or shift toward newer AI-native platforms. This keeps NOW positioned as a bellwether for the AI-versus-software trade, but also increases volatility around its elevated earnings multiple. ServiceNow AI versus software analysis
  • Negative Sentiment: Meta’s launch of an enterprise platform, including the hiring of MongoDB’s former chief executive to lead the effort, triggered a repricing of enterprise-software stocks. Investors increasingly view Meta as a potential competitor to ServiceNow and other incumbents, raising concerns about pricing pressure, customer retention and future growth. Meta enterprise platform market reaction
  • Negative Sentiment: ServiceNow urged customers to immediately patch multiple critical AI Platform vulnerabilities, including a severe SQL-injection flaw that could enable unauthorized access or data modification. The disclosure creates near-term reputational and execution risk, although the Reco security partnership may help address customer concerns. ServiceNow AI Platform security vulnerabilities

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Citigroup reissued a “market outperform” rating on shares of ServiceNow in a research note on Thursday, July 23rd. Weiss Ratings raised shares of ServiceNow from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, August 20th. UBS Group set a $248.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. Oppenheimer reiterated an “outperform” rating and issued a $140.00 target price (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. 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 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 issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $147.00.

Check Out Our Latest Stock Report on ServiceNow

ServiceNow Stock Performance

The stock has a 50-day moving average of $127.12 and a 200 day moving average of $110.90. The stock has a market cap of $134.48 billion, a PE ratio of 81.28, a P/E/G ratio of 2.49 and a beta of 0.97. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 0.43.

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

Insider Activity

In related news, insider Jacqueline Canney sold 7,847 shares of the company’s stock in a transaction that occurred on 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 transaction, the insider directly owned 30,042 shares in the company, valued at approximately $4,145,796. This represents a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Chamberlain sold 2,700 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was 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 of the company’s stock, valued at $5,960,645. The trade was a 5.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 14,081 shares of company stock valued at $1,937,904. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ServiceNow

A number of hedge funds have recently made changes to their positions in the stock. Bank of Nova Scotia boosted its stake in shares of ServiceNow by 53.3% during the first quarter. Bank of Nova Scotia now owns 1,018,036 shares of the information technology services provider’s stock valued at $106,436,000 after acquiring an additional 353,749 shares during the last quarter. Sapient Capital LLC raised its stake in ServiceNow by 266.0% in the 2nd quarter. Sapient Capital LLC now owns 77,661 shares of the information technology services provider’s stock valued at $7,710,000 after purchasing an additional 56,444 shares during the last quarter. Raiffeisen Bank International AG raised its stake in ServiceNow by 367.6% in the 4th quarter. Raiffeisen Bank International AG now owns 345,240 shares of the information technology services provider’s stock valued at $53,246,000 after purchasing an additional 271,401 shares during the last quarter. Nicollet Investment Management Inc. lifted its holdings in ServiceNow by 405.6% in the 4th quarter. Nicollet Investment Management Inc. now owns 21,045 shares of the information technology services provider’s stock valued at $3,224,000 after purchasing an additional 16,883 shares in the last quarter. Finally, Motley Fool Wealth Management LLC boosted its stake in shares of ServiceNow by 297.8% during the 4th quarter. Motley Fool Wealth Management LLC now owns 79,275 shares of the information technology services provider’s stock worth $12,144,000 after purchasing an additional 59,349 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

ServiceNow Company Profile

(Get Free Report)

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.

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