Recently, Zacks.com users have been paying close attention to ServiceNow (NOW). This makes it worthwhile to examine what the stock has in store.
Share prices of ServiceNow (NOW 0.74%) popped after the software company reported strong revenue growth to start the year and raised its guidance. While it's still trading down about 10% year to date, as of this writing, the stock is up about 27% over the past year.
The stock market has gotten off to a rocky start this year, but market volatility is a small price to pay for the large gains of holding shares of a great business over many years. If you put your money in the right growth stocks, you can build wealth that lasts for generations.
Major U.S. equities indexes gained ground for the third straight session. Although Trump administration officials have offered mixed comments on trade policy, this week's rally has coincided with increased optimism that negotiations could result in lower tariffs.
Software stocks are rising on Thursday following ServiceNow and SAP's earnings.
U.S. equities gained at midday as the market watched for further signs the White House may ease tariffs. The Nasdaq was nearly 2% higher, the S&P 500 was up 1.3%, and the Dow Jones Industrial Average rose 0.6%.
Now is the time to buy ServiceNow NYSE: NOW because, after correcting 40% from its early 2025 high, the rebound is on. The Q1 results sent the share price up more than 15% to confirm a significant technical reversal.
ServiceNow (NOW 14.84%) stock is surging Thursday after the company reported better-than-expected first-quarter results. The software company's share price had risen 15.2% as of 11:45 a.m.
NOW's resilient subscription base and AI push drive growth in first-quarter 2025. However, soft guidance and macro pressures pose near-term risks.
I reiterate a 'Strong Buy' rating for ServiceNow, with a fair value of $909 per share, driven by robust growth and strategic AI initiatives. ServiceNow's 22% cRPO growth and 19.5% organic revenue growth ease concerns about its growth prospects, reinforcing confidence in its future performance. The acquisition of Moveworks and the launch of new AI agents across multiple platforms position ServiceNow to enhance client retention and expand market relevance.
ServiceNow reaffirmed its 20% topline growth guidance, despite a minor shift in U.S. federal deals, maintaining investor confidence. The stock is attractively priced at 41x forward free cash flow, supported by strong financials and a $5.1 billion net cash position. ServiceNow's AI tools and new products like RaptorDB and CRM expansions are driving significant growth and high customer demand.
ServiceNow, Inc. (NYSE:NOW ) Q1 2025 Earnings Conference Call April 23, 2025 5:00 PM ET Company Participants Darren Yip - Group Vice President, Investor Relations and Market Insights William McDermott - Chairman and Chief Executive Officer Gina Mastantuono - President and Chief Financial Officer Amit Zavery - President, Chief Product Officer and Chief Operating Officer Conference Call Participants Keith Weiss - Morgan Stanley Kash Rangan - Goldman Sachs Mark Murphy - JPMorgan Keith Bachman - Bank of Montreal Alex Zukin - Wolfe Research Kylie Towbin - Citi Karl Keirstead - UBS Michael Turrin - Wells Fargo Samad Samana - Jefferies Raimo Lenschow - Barclays Patrick Walravens - Citizens JMP Kirk Materne - Evercore ISI Rob Owens - Piper Sandler Brian Schwartz - Oppenheimer Brad Sills - Bank of America Securities Operator Ladies and gentlemen, thank you for standing by. My name is Christa, and I'll be your conference operator today.