ServiceNow (NYSE:NOW) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

ServiceNow (NYSE:NOW) released its quarterly earnings data on Wednesday. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04, FiscalAI reports. The firm had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%.

ServiceNow Stock Performance

NYSE NOW traded down $6.57 during trading hours on Wednesday, reaching $95.50. The stock had a trading volume of 35,384,684 shares, compared to its average volume of 23,607,869. ServiceNow has a 52-week low of $81.24 and a 52-week high of $210.20. The stock has a fifty day moving average of $104.50 and a 200 day moving average of $108.56. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market cap of $98.46 billion, a P/E ratio of 56.91, a price-to-earnings-growth ratio of 1.75 and a beta of 0.96.

Insider Buying and Selling at ServiceNow

In other news, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the sale, the director directly owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This represents a 35.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total transaction of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company’s stock, valued at approximately $2,645,977.60. This trade represents a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 28,071 shares of company stock valued at $2,529,956. 0.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ServiceNow

A number of institutional investors have recently modified their holdings of NOW. Brighton Jones LLC grew its holdings in ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after acquiring an additional 30 shares during the period. Sivia Capital Partners LLC lifted its holdings in ServiceNow by 4.2% in the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after acquiring an additional 34 shares during the period. United Bank boosted its position in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after purchasing an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. boosted its position in ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after purchasing an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC grew its stake in shares of ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock worth $931,000 after purchasing an additional 609 shares during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Jefferies and other observers said ServiceNow could post solid Q2 results, with subscription revenue and cRPO potentially coming in above guidance and full-year outlook possibly raised on strong execution, early renewals, and AI-related demand.
• Positive Sentiment: ServiceNow announced new partnerships and AI integrations, including NinjaOne, Ciroos, and Esri, which could strengthen its platform by unifying IT operations, improving incident workflows, and adding location intelligence to enterprise processes.
• Positive Sentiment: Some analysts and market commentators argued the recent software selloff may have gone too far, with Morgan Stanley and others suggesting ServiceNow could rebound if earnings show AI is still driving demand rather than cannibalizing it.
• Neutral Sentiment: Investors are waiting for the company’s earnings update after the close, and options trading implies a sizable post-earnings move, highlighting how binary expectations are heading into the report.
• Negative Sentiment: CLSA initiated coverage with a bearish view and a low price target, adding to concerns that the stock may face more downside if growth or AI monetization disappoints.
• Negative Sentiment: Reports that OpenAI is pushing deeper into enterprise software increased fear that AI-native tools could pressure established workflow platforms like ServiceNow over time.
• Negative Sentiment: Weakness in peer software names, especially Pegasystems, also weighed on sentiment by reinforcing concerns that AI is changing purchasing behavior across the enterprise software sector.

Analyst Ratings Changes

A number of equities analysts have commented on NOW shares. BTIG Research reiterated a “buy” rating and issued a $150.00 target price on shares of ServiceNow in a report on Monday, June 29th. Oppenheimer reaffirmed an “outperform” rating and issued a $140.00 price objective (up from $130.00) on shares of ServiceNow in a research report on Wednesday, July 15th. Truist Financial increased their target price on shares of ServiceNow from $120.00 to $130.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Morgan Stanley set a $180.00 price target on shares of ServiceNow in a report on Tuesday. Finally, Citic Securities dropped their target price on ServiceNow from $168.00 to $140.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $139.12.

About ServiceNow

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.