ServiceNow (NYSE:NOW) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

ServiceNow (NYSE:NOW) announced its quarterly earnings data on Wednesday. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.02, FiscalAI reports. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The business had revenue of $3.77 billion for the quarter, compared to analysts’ expectations of $3.75 billion. During the same period in the previous year, the business posted $4.04 EPS. The firm’s quarterly revenue was up 22.1% compared to the same quarter last year.

ServiceNow Stock Performance

Shares of NYSE:NOW traded up $3.02 during midday trading on Wednesday, reaching $103.16. 33,414,625 shares of the company traded hands, compared to its average volume of 20,043,857. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12. ServiceNow has a 12 month low of $81.24 and a 12 month high of $211.48. The firm has a market capitalization of $106.89 billion, a price-to-earnings ratio of 61.85, a price-to-earnings-growth ratio of 1.67 and a beta of 1.01. The firm’s fifty day moving average price is $105.50 and its two-hundred day moving average price is $139.08.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on NOW shares. KeyCorp lowered their price objective on ServiceNow from $155.00 to $115.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Benchmark started coverage on ServiceNow in a research note on Wednesday, April 1st. They issued a “buy” rating and a $125.00 price objective on the stock. Truist Financial set a $125.00 price objective on ServiceNow in a research note on Wednesday, April 15th. Evercore restated an “outperform” rating and issued a $175.00 price objective (down from $225.00) on shares of ServiceNow in a research note on Thursday, January 29th. Finally, BTIG Research restated a “buy” rating and issued a $185.00 price objective on shares of ServiceNow in a research note on Monday. Three analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $173.46.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Company raised its full-year subscription revenue outlook, citing accelerating adoption of its AI-powered platform — a core positive for long-term growth and the stock’s narrative. ServiceNow boosts annual subscription revenue outlook on strong AI software demand
• Positive Sentiment: Strategic product and partner wins: deeper Google Cloud collaboration on AI agents and customer wins (e.g., TridentCare) that demonstrate real-world adoption of Now Assist and AI agents. These validate revenue mix improvements tied to AI. ServiceNow and Google Cloud unite AI agents for autonomous enterprise operations
• Positive Sentiment: Armis acquisition closed, expanding ServiceNow’s cybersecurity/OT/IoT footprint and addressable market — strategically positive even though it brings near-term integration costs. ServiceNow Expands Into OT And IoT With Armis And AI Manufacturing
• Neutral Sentiment: Reported Q1 results: subscription revenue ~$3.67B (≈22% Y/Y) and adjusted EPS $0.97 — slightly above/roughly in line with consensus; management provided detail on AI traction in the quarter. ServiceNow Reports First Quarter 2026 Financial Results
• Negative Sentiment: Company warned that delays in closing several large on-premises deals in the Middle East — tied to regional conflict — created about a 75-basis-point headwind to subscription revenue growth, a catalyst for the after-hours selloff. ServiceNow flags Middle East deal delays, shares crash
• Negative Sentiment: Management said the Armis acquisition will weigh on operating margins (roughly a 75 bps full‑year headwind and ~125 bps in Q2), and some investors read the combined margin/guidance commentary as disappointing, triggering steep post‑close declines. ServiceNow Posts Revenue Growth, But Says Armis Deal Will Weigh on Margins
• Negative Sentiment: Sector sentiment and positioning amplified moves: elevated hedge‑fund short interest and broader AI‑disruption concerns have left NOW vulnerable to sharper selling when guidance or margin details disappoint. ServiceNow draws hedge fund shorts as AI concerns dent sentiment, J.P. Morgan says

Insider Activity at ServiceNow

In related news, insider Kevin Thomas Mcbride sold 1,400 shares of the business’s stock in a transaction on Friday, February 13th. The stock was sold at an average price of $105.71, for a total transaction of $147,994.00. Following the sale, the insider directly owned 26,314 shares in the company, valued at approximately $2,781,652.94. The trade was a 5.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Paul Fipps sold 3,696 shares of the business’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $101.77, for a total value of $376,141.92. Following the transaction, the insider owned 8,061 shares of the company’s stock, valued at approximately $820,367.97. The trade was a 31.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 16,237 shares of company stock worth $1,697,162. 0.34% of the stock is owned by company insiders.

Hedge Funds Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Florida Financial Advisors LLC grew its position in ServiceNow by 5.4% during the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider’s stock worth $280,000 after buying an additional 14 shares in the last quarter. Clark Capital Management Group Inc. grew its position in ServiceNow by 3.6% during the third quarter. Clark Capital Management Group Inc. now owns 514 shares of the information technology services provider’s stock worth $473,000 after buying an additional 18 shares in the last quarter. American Trust grew its position in ServiceNow by 1.8% during the third quarter. American Trust now owns 1,029 shares of the information technology services provider’s stock worth $947,000 after buying an additional 18 shares in the last quarter. Morse Asset Management Inc grew its position in ServiceNow by 0.5% during the second quarter. Morse Asset Management Inc now owns 3,488 shares of the information technology services provider’s stock worth $3,586,000 after buying an additional 19 shares in the last quarter. Finally, CYBER HORNET ETFs LLC grew its position in ServiceNow by 3.7% during the third quarter. CYBER HORNET ETFs LLC now owns 567 shares of the information technology services provider’s stock worth $522,000 after buying an additional 20 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

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.