/ServiceNow%20Inc%20building%20in%20Silicon%20Valley-by%20Sundry%20Photography%20via%20iStock.jpg)
With a market cap of $150.6 billion, ServiceNow, Inc. (NOW) provides cloud-based digital workflow solutions through its AI-powered Now Platform that enables machine learning, robotic process automation, process mining, analytics, and low-code/no-code development tools. Serving multiple industries across North America, EMEA, and Asia-Pacific, it offers a broad portfolio of IT and non-IT products, helping enterprises streamline operations, enhance productivity, and optimize total cost of ownership.
The Santa Clara, California-based company is slated to announce its fiscal Q1 2025 earnings results after the market closes on Wednesday, Apr. 23. Ahead of this event, analysts expect ServiceNow to report a profit of $2.01 per share, a 10.4% growth from $1.82 per share in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters. In Q4 2024, NOW beat the consensus EPS estimate by a 10.9% margin.
For fiscal 2025, analysts expect the business software specialist to report EPS of $8.93, an increase of 24% from $7.20 in fiscal 2024. In addition, EPS is anticipated to grow 28.8% year-over-year to $11.50 in fiscal 2026.
Shares of ServiceNow have declined 7.4% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 4.2% dip. However, the stock experienced a smaller decline than the Technology Select Sector SPDR Fund's (XLK) 12.8% drop over the same period.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $3.67 and revenue of around $3 billion on Jan. 29, shares of NOW tumbled 11.4% the next day as the company issued weaker-than-expected Q1 and full-year 2025 subscription revenue. In addition, current remaining performance obligations (cRPO) grew 21% to $10.3 billion but slightly missed the target.
Moreover, the stock fell 2.7% on Mar. 26 after Baird cut its price target to $1,010 per share despite maintaining an "outperform" rating. Scotiabank's similar recent price target cut added to investor jitters. Worries over the $2.85 billion AI firm Moveworks acquisition also pressured the stock.
Analysts' consensus view on ServiceNow stock remains bullish, with a "Strong Buy" rating overall. Out of 38 analysts covering the stock, 30 recommend a "Strong Buy," three "Moderate Buys," four give a "Hold" rating, and one "Strong Sell." This configuration is more bullish than three months ago, with 28 analysts suggesting a "Strong Buy." As of writing, NOW is trading below the average analyst price target of $1,110.54.
