Royal Bank Of Canada Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

ServiceNow (NYSE:NOW) had its price objective cut by investment analysts at Royal Bank Of Canada from $195.00 to $185.00 in a research report issued to clients and investors on Thursday, Marketbeat reports. The brokerage presently has an “outperform” rating on the information technology services provider’s stock. Royal Bank Of Canada’s price target indicates a potential upside of 58.49% from the company’s previous close.

A number of other equities research analysts have also recently weighed in on NOW. Weiss Ratings restated a “hold (c)” rating on shares of ServiceNow in a research note on Thursday, January 22nd. Capital One Financial decreased their price target on shares of ServiceNow from $188.00 to $161.00 and set an “overweight” rating for the company in a research report on Friday, January 16th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $200.00 price objective on shares of ServiceNow in a research report on Thursday. KeyCorp reduced their price objective on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating for the company in a research note on Thursday. Finally, Wells Fargo & Company set a $225.00 target price on shares of ServiceNow and gave the company an “overweight” rating in a research note on Thursday, January 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $194.84.

ServiceNow Price Performance

Shares of NOW opened at $116.73 on Thursday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.06 and a current ratio of 1.00. The company has a 50 day moving average price of $149.79 and a 200-day moving average price of $170.88. ServiceNow has a fifty-two week low of $113.13 and a fifty-two week high of $211.48. The stock has a market capitalization of $121.21 billion, a PE ratio of 69.98, a PEG ratio of 2.01 and a beta of 0.98.

ServiceNow (NYSE:NOW) last issued its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03. The company had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.53 billion. ServiceNow had a net margin of 13.16% and a return on equity of 18.54%. ServiceNow’s revenue for the quarter was up 20.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.73 earnings per share. Equities analysts predict that ServiceNow will post 8.93 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Jacqueline P. Canney sold 470 shares of the company’s stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total value of $77,745.52. Following the transaction, the insider directly owned 15,135 shares of the company’s stock, valued at $2,503,571.16. This represents a 3.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $161.60, for a total value of $242,400.00. Following the sale, the director directly owned 47,930 shares of the company’s stock, valued at approximately $7,745,488. This represents a 3.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently bought and sold shares of NOW. Brighton Jones LLC boosted its holdings in ServiceNow by 1.1% in the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after purchasing an additional 30 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after buying an additional 34 shares during the period. Sound Income Strategies LLC boosted its stake in shares of ServiceNow by 66.7% in the second quarter. Sound Income Strategies LLC now owns 45 shares of the information technology services provider’s stock worth $46,000 after buying an additional 18 shares during the last quarter. XML Financial LLC acquired a new stake in ServiceNow during the second quarter worth about $243,000. Finally, Consolidated Portfolio Review Corp raised its position in ServiceNow by 38.9% during the second quarter. Consolidated Portfolio Review Corp now owns 836 shares of the information technology services provider’s stock valued at $859,000 after acquiring an additional 234 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results beat expectations — EPS and revenue topped street estimates and subscription revenue grew >20%, showing continued demand and AI adoption. Earnings Beat
• Positive Sentiment: Board authorized a $5B buyback (including $2B accelerated), which is supportive for EPS and signals management confidence. Buyback
• Positive Sentiment: Strong AI product traction and partnerships (Anthropic, OpenAI integrations) underpin longer-term growth potential and enterprise adoption. AI Partnerships
• Neutral Sentiment: Analyst reactions are mixed: several firms (DA Davidson, Cantor, BTIG, Needham) reiterated/maintained buy or overweight ratings and raised/kept targets, while others cut targets or downgraded — leaving a wide range of price targets and sentiment dispersion. Analyst Notes
• Neutral Sentiment: Unusually large options volume was reported, indicating speculative/moderately aggressive trading that can amplify intraday moves (uncertain directional implication). Options Activity
• Negative Sentiment: Guidance signaled a slowdown: management forecast subscription growth for FY26 that implies deceleration from 2025 levels — investors viewed this as a notable deceleration risk. Guidance/Slowdown
• Negative Sentiment: Broader sector and AI disruption fears triggered a sell-off in software names; commentary highlighted multiple compression and concerns competition from new AI entrants could hurt growth/valuation. Sector/AI Fears
• Negative Sentiment: Some firms cut price targets sharply (KeyCorp to $115, Macquarie to $140), reflecting concern over valuation and near?term execution — that contributed to downward pressure. Price Target Cuts

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.