ServiceNow (NOW) Stock: Is Now the Time to Buy After Strong Q1 Performance?

Key Highlights

• Kentucky Retirement Systems dramatically expanded its ServiceNow holdings by 400% during Q4, acquiring an additional 51,904 shares valued at approximately $9.94 million.
• Multiple institutional players made substantial position increases, pushing total institutional ownership to 87.18% of outstanding shares.
• Shares began Monday trading at $124.56, trading above the 200-day moving average of $123.39 despite remaining below the 52-week peak of $211.48.
• First quarter revenue surpassed expectations at $3.77 billion compared to the projected $3.75 billion, marking a 22.1% year-over-year increase.
• Analysts maintain a “Moderate Buy” rating with a collective price target of $141.85.

ServiceNow (NOW) shares are capturing significant institutional investor interest, as fourth-quarter 2025 filings reveal a substantial wave of position building and expansion among professional money managers.

ServiceNow, Inc., NOW

Leading the charge, Kentucky Retirement Systems quadrupled its ServiceNow stake to 64,880 shares, representing approximately $9.94 million in value at filing time. This dramatic move signals strong conviction rather than a minor portfolio adjustment.

This bullish sentiment extended across multiple institutions. Peapack Gladstone Financial Corp expanded its holdings by an impressive 505.5%, Florida Financial Advisors increased exposure by 552.9%, and Waterloo Capital grew its position by 384.1%. Meanwhile, Rothschild Wealth initiated a fresh stake valued near $310,000.

Cumulatively, institutional stakeholders now control 87.18% of ServiceNow’s total shares outstanding.

NOW kicked off Monday’s session at $124.56 per share. The stock maintains a position above its 200-day moving average of $123.39, though it continues trading significantly below its 52-week high of $211.48. With a 52-week low of $81.24, the stock has achieved a meaningful rebound from its bottom levels.

The enterprise software giant carries a market capitalization of $128.42 billion alongside a price-to-earnings ratio of 74.23.

First Quarter Results Exceed Expectations

ServiceNow unveiled its Q1 performance on April 22nd, delivering revenue of $3.77 billion that topped the Street’s $3.75 billion estimate. This figure reflects a robust 22.1% year-over-year expansion.

Earnings per share reached $0.97, aligning precisely with analyst projections. The comparable quarter in the prior year produced EPS of $0.81. Looking ahead to the complete fiscal year, the analyst community currently projects earnings of $2.36 per share.

The company achieved a net margin of 12.59% coupled with an 18.16% return on equity.

Street Ratings and Executive Trading

Wall Street maintains a generally optimistic stance on ServiceNow shares. Citigroup elevated its price objective from $154 to $158 while maintaining a “Buy” rating. Evercore increased its target from $140 to $150 with an “Outperform” designation. BTIG reaffirmed its “Buy” recommendation with a $150 target. DA Davidson sustained its “Buy” rating with the most aggressive target at $190. Cantor Fitzgerald adjusted its target downward to $122 but preserved an “Overweight” rating.

Among 43 monitored analysts, the distribution stands at: two Strong Buy ratings, 35 Buy ratings, five Hold ratings, and one Sell rating. The average price target comes to $141.85.

Regarding insider transactions, Director Paul Edward Chamberlain divested 1,500 shares on May 14th at $87.23 each, trimming his stake by 3.23%. Insider Paul Fipps sold 1,048 shares on May 18th at $98.51 apiece, representing a 7.99% reduction. Both transactions occurred through predetermined Rule 10b5-1 trading plans. Fipps executed his sale specifically to satisfy tax liabilities associated with vesting equity compensation.

Collectively, company insiders disposed of 28,071 shares totaling roughly $2.53 million over the past quarter. Executive and board ownership represents merely 0.34% of the company.

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