ServiceNow (NYSE: NOW) is making headlines in the stock market—and for valid reasons. The cloud-based workflow automation firm has been experiencing significant growth recently, with its stock increasing by 25% over the last year.
ServiceNow reported strong Q2 results, and even though the stock's valuation is high, future growth prospects more than offset this. Sector-relative fundamentals and price factors look less than ideal, but in the reality of sentiment-driven markets, the investment case is good. I anticipate a 35% 18-month price return, or about 20% in 12 months.
ServiceNow's Q2 earnings and revenues surpass estimates, driven by strong AI momentum, large deals and expanding enterprise demand.
ServiceNow Inc. CEO Bill McDermott says artificial intelligence is helping save on labor costs and making the company faster. “We're slowing down the hiring in jobs that are — quite frankly — soul crushing jobs," McDermott said on Bloomberg Tech.
Agentic AI drove up ServiceNow's guidance and the stock rose 4.8% in July 24 morning trade.
ServiceNow, Inc. (NYSE:NOW ) Q2 2025 Earnings Conference Call July 23, 2025 5:00 PM ET Company Participants Darren Yip - Head of Investor Relations William McDermott - Chairman & CEO Gina Mastantuono - President & CFO Amit Zavery - President, Chief Product Officer & COO Conference Call Participants Aleksandr Zukin - Wolfe Research, LLC Mark Murphy - JPMorgan Chase & Co, Research Division Brad Zelnick - Deutsche Bank AG, Research Division Kasthuri Rangan - Goldman Sachs Group, Inc., Research Division Karl Keirstead - UBS Investment Bank, Research Division Matthew Hedberg - RBC Capital Markets, Research Division Keith Weiss - Morgan Stanley, Research Division James Wood - TD Cowen, Research Division Michael Cikos - Needham & Company, LLC, Research Division Gregg Moskowitz - Mizuho Securities USA LLC, Research Division Bradley Sills - BofA Securities, Research Division Peter Weed - Sanford C. Bernstein & Co., LLC.
While the top- and bottom-line numbers for ServiceNow (NOW) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
ServiceNow (NOW) came out with quarterly earnings of $4.09 per share, beating the Zacks Consensus Estimate of $3.54 per share. This compares to earnings of $3.13 per share a year ago.
ServiceNow raised its annual subscription revenue forecast on Wednesday, signaling robust demand for its artificial intelligence-enabled software designed to automate digital operations and sending its shares up more than 7% in extended trading.
ServiceNow posted stronger-than-expected second-quarter results and boosted its guidance due to artificial intelligence adoption. "Every business process in every industry is being refactored for agentic AI," said ServiceNow chairman and CEO Bill McDermott in a release.
ServiceNow's acquisition of enterprise AI startup Moveworks is reportedly drawing regulatory scrutiny.
Get a deeper insight into the potential performance of ServiceNow (NOW) for the quarter ended June 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.