ServiceNow (NOW) Stock: The Bull and Bear Case Right Now

TLDR

• ServiceNow stock rose 2.2% on Wednesday, trading as high as $105.40 on volume 22% above its daily average.
• Q1 earnings matched expectations at $0.97 EPS, with revenue of $3.77 billion — up 22.1% year over year and slightly above estimates.
• Fidelis Capital Partners boosted its NOW stake by 478.7% in Q4, adding 11,292 shares worth roughly $2.09 million.
• Wall Street’s consensus remains “Moderate Buy” with an average price target of $141.85, though several firms have trimmed their targets.
• Insiders have sold 28,071 shares worth roughly $2.53 million over the past 90 days, with some sales tied to tax obligations on vesting equity.

ServiceNow (NOW) opened at $102.15 on Thursday and traded as high as $105.40 on Wednesday, when the stock posted a 2.2% gain. Volume came in around 27.5 million shares — about 22% above the daily average — suggesting a pickup in market interest.

ServiceNow, Inc., NOW

The stock has had a rough stretch. Its 52-week high sits at $211.48, meaning NOW is trading at roughly half that level. The 200-day moving average is $124.18, well above where the stock is now, which reflects the broader pressure the name has been under.

Despite the recent weakness, the Q1 numbers weren’t the problem. ServiceNow reported EPS of $0.97 for the quarter ended March, right in line with the $0.97 consensus. Revenue came in at $3.77 billion, a hair above the $3.75 billion estimate and up 22.1% from a year earlier. The year-ago EPS was $0.81, so profit growth has been solid.

Institutional Activity

One name catching attention is Fidelis Capital Partners LLC, which raised its NOW position by 478.7% in Q4, purchasing 11,292 additional shares and bringing its total to 13,651 shares — valued at roughly $2.09 million. Several other smaller firms also added to positions during the quarter.

Overall, institutional investors hold 87.18% of the company’s stock. A handful of firms grew stakes modestly during Q3, including Meridian Wealth Advisors and Valley Brook Capital Group, each adding small incremental positions.

Analyst Targets Still Above the Stock

The consensus price target of $141.85 sits well above where NOW is trading, but the picture is mixed. Raymond James cut its target from $160 to $130 while keeping an “Outperform” rating. HSBC dropped its target from $226 to $171. JPMorgan lowered its target from $195 to $145.

On the other side, Citigroup raised its target from $154 to $158, and Capital One lifted its target from $105 to $120. Bank of America reiterated NOW as a top buy, calling AI a growth engine for the company.

With 35 Buy ratings, 5 Holds, 2 Strong Buys, and just 1 Sell, the analyst community is broadly constructive — even if the targets have come down.

Insider activity has also been in focus. Insider Jacqueline P. Canney sold 8,927 shares on April 24 at $89.60, reducing her position by 23.21%. Insider Paul Fipps sold 1,048 shares on May 18 at $98.51, a 7.99% reduction in his holding. Both sales were made under pre-arranged Rule 10b5-1 plans to cover tax withholding on vesting equity awards.

One headwind flagged in recent coverage: investors remain concerned that AI could disrupt ServiceNow’s business model. The stock had already fallen sharply earlier in the week on margin concerns, even as revenue beat expectations.

Capital One raised its target to $120 and reiterated an Overweight rating on May 5 — the most recent analyst action on record.

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