Earnings Preview: What to Expect From ServiceNow’s Report

Photo of author

By Ronald Tech

Valued at a market cap of $218.4 billion, ServiceNow, Inc. (NOW) provides cloud-based workflow automation solutions for digital transformation. The Santa Clara, California-based company is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Jan. 22.

Ahead of this event, analysts expect NOW to report a profit of $1.77 per share, up 58% from $1.12 per share in the previous year’s quarter. The company has surpassed Wall Street’s bottom-line estimates in the past four quarters. Its EPS od $2.17 beat the consensus estimate by 19.2% in the recent quarter. 

For fiscal 2024, analysts expect NOW to report EPS of $7.07, up 137.3% from $2.98 in fiscal 2023.

www.barchart.com

NOW stock has climbed 53.4% over the past 52 weeks, outpacing both the S&P 500 Index’s ($SPX23.7% rise and the Technology Select Sector SPDR Fund’s (XLK) 23.8% gain over the same period.

www.barchart.com

ServiceNow’s market momentum over the past year has been fueled by strong demand for its AI-driven workflow solutions, robust financial performance, strategic acquisitions, and positive analyst sentiment.

However, on Dec. 13, NOW fell over 2% after KeyBanc Capital Markets downgraded the stock from “Overweight” to “Sector-Weight.”

Analysts’ consensus rating on ServiceNow stock is highly bullish, with a “Strong Buy” rating overall. Out of 36 analysts covering the stock, opinions include 29 “Strong Buys,” three “Moderate Buys,” three “Holds,” and one “Strong Sell.” 

NOW’s mean price target of $1,079.77 indicates a potential upside of 2.4% from the current market prices. 


On the date of publication,

Kritika Sarmah

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

See also  Deciphering Nvidia's Value Against Microsoft Deciphering Nvidia's Value Against Microsoft

here.
More news from Barchart