Is ServiceNow (NOW) Stock a Buy After Its 22% Revenue Growth Quarter?

TLDR

• Kentucky Retirement Systems boosted its NOW position by 400% in Q4, buying 51,904 additional shares worth roughly $9.94 million.
• Several other institutional investors also made large increases, with overall institutional ownership now at 87.18%.
• NOW stock opened at $124.56 Monday, well off its 52-week high of $211.48 but above its 200-day moving average of $123.39.
• ServiceNow beat Q1 revenue estimates, posting $3.77 billion versus $3.75 billion expected, with 22.1% year-over-year growth.
• The analyst consensus sits at “Moderate Buy” with an average price target of $141.85.

ServiceNow (NOW) stock is drawing fresh institutional attention, with a wave of new and expanded positions filed in Q4 2025 pointing to renewed confidence among professional investors.

ServiceNow, Inc., NOW

Kentucky Retirement Systems led the way, increasing its stake by 400% to 64,880 shares, valued at around $9.94 million at the time of filing. That’s not a small tweak — that’s a full commitment.

The buying wasn’t limited to one fund. Peapack Gladstone Financial Corp added to its position by 505.5%, while Florida Financial Advisors lifted its holdings by 552.9%. Waterloo Capital increased by 384.1%, and Rothschild Wealth opened a new position worth around $310,000.

Combined, institutional investors now own 87.18% of ServiceNow’s outstanding stock.

NOW opened at $124.56 on Monday. The stock sits above its 200-day moving average of $123.39, though it remains well below its 52-week high of $211.48. The 52-week low is $81.24, meaning the stock has already made a notable recovery from its lows.

The company has a market cap of $128.42 billion and a P/E ratio of 74.23.

Q1 Earnings Beat

ServiceNow reported Q1 results on April 22nd. Revenue came in at $3.77 billion, ahead of the $3.75 billion consensus estimate. That represents a 22.1% increase year-over-year.

Earnings per share hit $0.97, matching analyst expectations. In the same quarter last year, EPS was $0.81. For the full fiscal year, analysts are currently forecasting $2.36 EPS.

The company posted a net margin of 12.59% and a return on equity of 18.16%.

Analyst Targets and Insider Activity

Wall Street remains broadly positive on the stock. Citigroup raised its target from $154 to $158 with a “Buy” rating. Evercore bumped its target from $140 to $150 with an “Outperform.” BTIG reiterated a “Buy” with a $150 target. DA Davidson kept its “Buy” with the highest target in the group at $190. Cantor Fitzgerald lowered its target to $122 but kept an “Overweight” rating.

Across 43 analysts tracked, the breakdown is: two Strong Buy, 35 Buy, five Hold, and one Sell. The consensus target is $141.85.

On the insider side, Director Paul Edward Chamberlain sold 1,500 shares on May 14th at $87.23 per share, reducing his position by 3.23%. Insider Paul Fipps sold 1,048 shares on May 18th at $98.51, a 7.99% reduction. Both sales were conducted under pre-arranged Rule 10b5-1 plans. Fipps’ sale was made to cover tax obligations tied to equity award vesting.

In total, insiders sold 28,071 shares worth approximately $2.53 million in the last quarter. Corporate insiders hold just 0.34% of the company.

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