/ServiceNow%20Inc%20building%20in%20Silicon%20Valley-by%20Sundry%20Photography%20via%20iStock.jpg)
Based in Santa Clara, California, ServiceNow, Inc. (NOW) is a global leader in digital workflow solutions. It is known for its innovative platform that automates and streamlines enterprise operations. With a market cap of $152.57 billion, ServiceNow is known for its cutting-edge technology and commitment to enhancing business productivity and efficiency. The company is set to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 24.
Ahead of the event, analysts expect NOW to report a profit of $1.08 per share, up 40.3% from $0.77 in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $1.82 per share for the last quarter surpassed the consensus estimate by 29.1%. Significant growth in subscription revenue and robust demand for its generative AI products aided NOW's results.
For fiscal 2024, analysts expect NOW to report EPS of $6.50, up 118.1% from $2.98 in fiscal 2023.
NOW stock is up 6% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 17.1% gains and marginally underperforming the iShares Expanded Tech-Software Sector ETF’s (IGV) 6.5% returns over the same time frame.
ServiceNow reported its Q1 results on Apr. 24. Following the earnings release, NOW shares saw a marginal gain but a 4% decline the following day. Revenue for the period was $2.6 billion, exceeding the forecasted $2.59 billion.
The consensus opinion on NOW stock is bullish, with an overall “Strong Buy” rating. Out of 33 analysts covering the stock, 28 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, two suggest a “Hold,” and one advises a “Strong Sell.” NOW's average analyst price target is $834.37, indicating a potential upside of 11.4% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
