DA Davidson Reaffirms “Buy” Rating for ServiceNow (NYSE:NOW)

ServiceNow (NYSE:NOW)‘s stock had its “buy” rating reiterated by investment analysts at DA Davidson in a research report issued on Thursday, Marketbeat.com reports. They presently have a $220.00 price target on the information technology services provider’s stock. DA Davidson’s target price indicates a potential upside of 92.05% from the company’s previous close.

Several other research firms also recently issued reports on NOW. Evercore ISI reaffirmed an “outperform” rating and set a $175.00 price target (down previously from $225.00) on shares of ServiceNow in a research note on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of ServiceNow in a report on Thursday, January 22nd. Morgan Stanley set a $263.00 price target on shares of ServiceNow and gave the company an “overweight” rating in a report on Thursday, October 30th. Wells Fargo & Company set a $225.00 price objective on shares of ServiceNow and gave the stock an “overweight” rating in a research note on Thursday, January 8th. Finally, DZ Bank upgraded ServiceNow to a “strong-buy” rating in a research report on Thursday, December 18th. 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 issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $194.79.

ServiceNow Price Performance

NOW traded down $15.07 on Thursday, hitting $114.55. 45,786,684 shares of the company were exchanged, compared to its average volume of 14,986,205. ServiceNow has a fifty-two week low of $113.13 and a fifty-two week high of $211.48. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.06 and a current ratio of 1.06. The firm has a market capitalization of $118.95 billion, a P/E ratio of 68.88, a price-to-earnings-growth ratio of 2.27 and a beta of 0.98. The business’s fifty day moving average is $151.58 and its 200 day moving average is $171.79.

ServiceNow (NYSE:NOW) last announced its quarterly earnings results on Wednesday, January 28th. The information technology services provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.89 by $0.03. The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.53 billion. ServiceNow had a return on equity of 18.74% and a net margin of 13.66%.The company’s quarterly revenue was up 20.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.73 EPS. As a group, sell-side analysts anticipate that ServiceNow will post 8.93 EPS for the current year.

Insider Activity at ServiceNow

In other news, Vice Chairman Nicholas Tzitzon sold 2,610 shares of the stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $165.42, for a total transaction of $431,735.76. Following the transaction, the insider directly owned 15,000 shares in the company, valued at $2,481,240. This represents a 14.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $161.60, for a total transaction of $242,400.00. Following the completion of the sale, the director owned 47,930 shares of the company’s stock, valued at approximately $7,745,488. The trade was a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 15,310 shares of company stock worth $2,533,585. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently added to or reduced their stakes in the company. Kilter Group LLC purchased a new position in ServiceNow in the second quarter valued at approximately $25,000. IAG Wealth Partners LLC increased its position in shares of ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 18 shares in the last quarter. Noble Wealth Management PBC raised its stake in shares of ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 128 shares during the period. Lodestone Wealth Management LLC acquired a new position in shares of ServiceNow during the 4th quarter valued at $26,000. Finally, Albion Financial Group UT boosted its position in ServiceNow by 400.0% during the 4th 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 during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q4 results topped expectations — EPS of $0.92 and revenue above $3.5B with ~20% y/y growth, confirming healthy demand and AI product traction. NOW Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall
• Positive Sentiment: AI partnerships and product momentum — expanded integrations with Anthropic and OpenAI and faster Now Assist adoption support long-term AI-led monetization. ServiceNow inks another AI partnership, this time with Anthropic
• Positive Sentiment: Board authorized additional $5B buyback (including $2B accelerated) — material buyback supports share counts and signals management confidence. ServiceNow Reports Fourth Quarter and Full-Year 2025 Financial Results; Board of Directors Authorizes Additional $5B for Share Repurchase Program
• Neutral Sentiment: Mixed analyst commentary — many firms reaffirm buy ratings and high targets while others trimmed price targets; the street remains divided on valuation and near-term growth pacing.
• Negative Sentiment: Guidance indicated a slower cadence — company guided 2026 subscription revenue growth to roughly 19.5%–20.0%, a deceleration from 2025 that disappointed investors focused on acceleration. ServiceNow Guides To Steeper Slowdown Than Investors Expected
• Negative Sentiment: Sector-wide AI disruption fear and software sell-off — cautious commentary from peers (e.g., SAP) and broad software weakness magnified the post-earnings drop. US software stocks slide after SAP, ServiceNow results fuel AI disruption fears
• Negative Sentiment: Analyst cuts and positioning — some shops (KeyCorp, BMO and others) lowered targets and/or moved to underweight, adding selling pressure despite a few firms maintaining high targets. ServiceNow (NOW) PT Lowered to $115 at KeyBanc

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.