Recent trading activity and financial performance indicate strong interest in ServiceNow (NOW) stock. With notable institutional investment and robust earnings delivered in the first quarter, investors may consider acquiring shares following impressive quarterly results.
ServiceNow’s Q1 Performance Exceeds Expectations
ServiceNow reported its first quarter earnings on April 22nd, showcasing revenue of $3.77 billion. This figure surpassed forecasts, which estimated earnings of $3.75 billion. The revenue reflects a significant year-over-year increase of 22.1%. Additionally, earnings per share (EPS) were reported at $0.97, meeting analyst expectations.
- Q1 revenue: $3.77 billion
- Estimated revenue: $3.75 billion
- Year-over-year increase: 22.1%
- Earnings per share: $0.97
Growing Institutional Interest
Institutional investors have shown growing interest in ServiceNow, particularly during the fourth quarter of 2025. Kentucky Retirement Systems notably expanded its holdings by 400%, acquiring an additional 51,904 shares valued at approximately $9.94 million. Total institutional ownership now stands at 87.18% of outstanding shares.
Significant Position Increases by Institutions
- Peapack Gladstone Financial Corp: Increased holdings by 505.5%
- Florida Financial Advisors: Increased holdings by 552.9%
- Waterloo Capital: Increased holdings by 384.1%
- Rothschild Wealth: Initiated a stake valued near $310,000
Stock Performance Metrics
ServiceNow shares opened trading at $124.56, remaining above the 200-day moving average of $123.39. However, the shares are still significantly below their 52-week peak of $211.48 and have a low of $81.24. The current market capitalization is approximately $128.42 billion, with a price-to-earnings ratio of 74.23.
Analysts Maintain a Positive Outlook
Analysts are largely bullish on the stock, maintaining a “Moderate Buy” rating. The average price target is set at $141.85, with several firms adjusting their price forecasts:
| Firm | Price Target | Rating |
|---|---|---|
| Citigroup | $158 | Buy |
| Evercore | $150 | Outperform |
| BTIG | $150 | Buy |
| DA Davidson | $190 | Buy |
| Cantor Fitzgerald | $122 | Overweight |
Overall, out of 43 monitored analysts, there are:
- 2 Strong Buy ratings
- 35 Buy ratings
- 5 Hold ratings
- 1 Sell rating
Insider Trading Activity
On the insider trading front, Director Paul Edward Chamberlain sold 1,500 shares at $87.23 each on May 14th. Insider Paul Fipps sold 1,048 shares at $98.51 each on May 18th. Both transactions were made under Rule 10b5-1 trading plans. Over the past quarter, insiders have sold a total of 28,071 shares worth approximately $2.53 million.
Given the strong institutional interest and positive outlook, investors may consider buying ServiceNow stock after its impressive Q1 performance. The current market dynamics suggest a favorable environment for growth.
