HSBC Issues Pessimistic Forecast for ServiceNow (NYSE:NOW) Stock Price

ServiceNow (NYSE:NOW) had its price target reduced by equities research analysts at HSBC from $266.40 to $226.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The brokerage presently has a “buy” rating on the information technology services provider’s stock. HSBC’s price objective suggests a potential upside of 93.61% from the stock’s previous close.

A number of other analysts also recently weighed in on NOW. KeyCorp cut their price target on shares of ServiceNow from $155.00 to $115.00 and set an “underweight” rating on the stock in a research report on Thursday. Morgan Stanley set a $263.00 price objective on shares of ServiceNow and gave the company an “overweight” rating in a report on Thursday, October 30th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ServiceNow in a report on Thursday, January 22nd. BNP Paribas Exane lowered their target price on shares of ServiceNow from $186.00 to $120.00 and set a “neutral” rating on the stock in a report on Thursday, January 22nd. Finally, DA Davidson reiterated a “buy” rating and issued a $220.00 price target on shares of ServiceNow in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average target price of $194.47.

ServiceNow Trading Down 0.0%

NYSE:NOW opened at $116.73 on Friday. ServiceNow has a 52 week low of $113.13 and a 52 week high of $211.48. The company has a market capitalization of $121.21 billion, a P/E ratio of 69.98, a P/E/G ratio of 2.01 and a beta of 0.98. 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 stock’s 50 day moving average price is $149.79 and its 200 day moving average price is $170.88.

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

Insider Buying and Selling

In other news, CFO Gina Mastantuono sold 2,085 shares of the company’s stock in a transaction that occurred on 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 of the company’s stock, valued at $10,215,544. This represents a 3.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Vice Chairman Nicholas Tzitzon sold 2,610 shares of ServiceNow stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $165.42, for a total transaction of $431,735.76. Following the sale, the insider owned 15,000 shares in the company, valued at approximately $2,481,240. This represents a 14.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 15,310 shares of company stock worth $2,533,585 in the last ninety days. Insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

A number of institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its stake in ServiceNow by 1.1% during the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after buying an additional 30 shares during the period. Sivia Capital Partners LLC raised its position in shares of ServiceNow by 4.2% during the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after purchasing an additional 34 shares during the period. Hilltop National Bank bought a new position in shares of ServiceNow in the 2nd quarter worth $626,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its position in ServiceNow by 22.1% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,512 shares of the information technology services provider’s stock valued at $2,583,000 after purchasing an additional 455 shares during the period. Finally, Ameritas Advisory Services LLC bought a new stake in ServiceNow during the 2nd quarter valued at $214,000. 87.18% of the stock is owned by institutional investors.

More ServiceNow News

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

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.