ServiceNow (NYSE:NOW) Announces Quarterly Earnings Results

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

ServiceNow Trading Down 6.4%

NYSE:NOW traded down $6.57 during trading hours on Wednesday, reaching $95.50. 35,384,684 shares of the stock were exchanged, compared to its average volume of 23,607,869. The business has a 50-day moving average of $104.50 and a two-hundred day moving average of $108.56. ServiceNow has a twelve month low of $81.24 and a twelve month high of $210.20. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $98.46 billion, a price-to-earnings ratio of 56.91, a PEG ratio of 1.75 and a beta of 0.96.

Key Headlines Impacting 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.

Insider Buying and Selling at ServiceNow

In related news, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider directly owned 29,531 shares of the company’s stock, valued at $2,645,977.60. This trade represents a 23.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of ServiceNow stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director directly owned 44,930 shares in the company, valued at approximately $3,919,243.90. This trade represents a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Institutional investors have recently modified their holdings of the business. Wealth Watch Advisors INC purchased a new position in ServiceNow during the 3rd quarter worth $29,000. Kelleher Financial Advisors purchased a new stake in shares of ServiceNow in the third quarter valued at about $50,000. Pin Oak Investment Advisors Inc. boosted its stake in shares of ServiceNow by 20.7% during the third quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock worth $123,000 after buying an additional 23 shares during the period. Jupiter Wealth Management LLC acquired a new stake in shares of ServiceNow during the second quarter worth about $154,000. Finally, AlphaCentric Advisors LLC purchased a new position in shares of ServiceNow during the fourth quarter worth about $25,000. 87.18% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have recently issued reports on NOW. The Goldman Sachs Group reaffirmed a “buy” rating and set a $145.00 target price (down from $163.00) on shares of ServiceNow in a report on Wednesday, July 8th. DA Davidson set a $170.00 price target on ServiceNow and gave the company a “buy” rating in a research report on Monday. Deutsche Bank Aktiengesellschaft cut their price target on ServiceNow from $180.00 to $135.00 and set a “buy” rating for the company in a report on Thursday, April 16th. TD Cowen reissued a “buy” rating and set a $140.00 price objective on shares of ServiceNow in a research note on Friday, July 17th. Finally, Raymond James Financial dropped their target price on ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, ServiceNow currently has an average rating of “Moderate Buy” and an average price target of $139.12.

ServiceNow Company Profile

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.