ServiceNow (NYSE:NOW) Shares Down 6% – Time to Sell?

ServiceNow, Inc. (NYSE:NOW) shares were down 6% during mid-day trading on Tuesday . The stock traded as low as $131.61 and last traded at $127.5930. Approximately 68,298,016 shares were traded during trading, an increase of 130% from the average daily volume of 29,649,568 shares. The stock had previously closed at $135.6990.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow continues to be highlighted as a leader in the software/AI rebound, with multiple reports citing strong momentum in software stocks after Nvidia’s AI comments supported demand for enterprise software names. ServiceNow, Adobe stocks jump as Nvidia’s new AI chip sparks software rally
• Positive Sentiment: Investor interest remains tied to ServiceNow’s AI positioning, including agentic AI and its expanding enterprise partnerships, which may support long-term revenue growth and keep the stock in focus as a potential AI beneficiary. Here is Why ServiceNow (NOW) is One of the Best Future Tech Stocks According to Billionaires
• Neutral Sentiment: New coverage compares ServiceNow with other software names and asks whether it is the better buy versus peers like Intuit, underscoring ongoing investor debate rather than a clear new fundamental catalyst. ServiceNow vs. Intuit: Which Technology Stock Is a Better Buy in 2026?
• Neutral Sentiment: Some commentary frames ServiceNow as part of a wider software comeback, but the move appears to be driven more by sector rotation and AI optimism than by a company-specific announcement. ServiceNow Is Leading a Software Comeback for These Stocks
• Negative Sentiment: Bearish opinion pieces and valuation-focused commentary suggest some investors think ServiceNow may be expensive relative to its near-term growth outlook, which can pressure the stock after a sharp run-up. ServiceNow: The More I Look, The Less Appealing It Feels

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. BTIG Research reaffirmed a “buy” rating and set a $150.00 price target on shares of ServiceNow in a research note on Monday, May 4th. Wall Street Zen downgraded shares of ServiceNow from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Benchmark started coverage on shares of ServiceNow in a research report on Wednesday, April 1st. They issued a “buy” rating and a $125.00 price objective for the company. Oppenheimer reissued an “outperform” rating on shares of ServiceNow in a research report on Tuesday, May 26th. Finally, Cantor Fitzgerald dropped their price objective on shares of ServiceNow to $122.00 and set an “overweight” rating for the company in a research report on Thursday, April 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ServiceNow currently has a consensus rating of “Moderate Buy” and an average price target of $141.85.

ServiceNow Price Performance

The company has a market capitalization of $131.55 billion, a P/E ratio of 76.04, a P/E/G ratio of 2.05 and a beta of 0.94. The business’s 50-day simple moving average is $98.50 and its 200 day simple moving average is $123.13. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

ServiceNow (NYSE:NOW) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting analysts’ consensus estimates of $0.97. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS. As a group, sell-side analysts anticipate that ServiceNow, Inc. will post 2.36 EPS for the current year.

Insider Buying and Selling at ServiceNow

In related news, insider Jacqueline P. Canney sold 8,927 shares of the company’s stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the completion of the transaction, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $87.23, for a total transaction of $130,845.00. Following the transaction, the director owned 44,930 shares of the company’s stock, valued at approximately $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 28,071 shares of company stock valued at $2,529,956 over the last three months. 0.34% of the stock is owned by insiders.

Institutional Investors Weigh In On ServiceNow

Large investors have recently made changes to their positions in the company. IAG Wealth Partners LLC grew its holdings in shares of ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC grew its holdings 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 worth $25,000 after purchasing an additional 128 shares during the last quarter. Millstone Evans Group LLC grew its holdings in shares of ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 132 shares during the last quarter. CBIZ Investment Advisory Services LLC grew its holdings in ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 135 shares during the last quarter. Finally, Blueline Advisors LLC bought a new stake in ServiceNow during the 4th quarter worth about $25,000. Institutional investors own 87.18% of the company’s stock.

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.