While the top- and bottom-line numbers for ServiceNow (NOW) give a sense of how the business performed in the quarter ended March 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 $4.04 per share, beating the Zacks Consensus Estimate of $3.79 per share. This compares to earnings of $3.41 per share a year ago.
Ahead of ServiceNow's earnings, Wall Street worried about DOGE hitting government software spending. The company won six new US government customers in the first quarter.
Chief Executive Bill McDermott said the platform is operating in a best-case-scenario environment as companies look to optimize their supply chains amid recent tariff announcements and federal clients aim to boost efficiency amid government spending cuts.
ServiceNow Inc. brushed off fears about “DOGE” cutbacks and an uncertain macroeconomic environment on Wednesday, as the software giant posted big growth in its government business and boosted its outlook for the full year.
ServiceNow beat Wall Street estimates for first-quarter profit on Wednesday, helped by resilient demand for its artificial intelligence-powered software for managing IT services.
Although NOW's strong portfolio and rich partner base are noteworthy, unfavorable forex, tariffs and stretched valuation are major concerns ahead of Q1 earnings.
The ServiceNow stock price has declined significantly over the past few months, dropping from a high of $1,196 in January to its current level of $772. It has dropped by over 35% from its highest level this year, meaning that it is now in a bear market.
Beyond analysts' top -and-bottom-line estimates for ServiceNow (NOW), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
ServiceNow (NOW) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
ServiceNow's stock dropped recently due to macroeconomic concerns and disappointing Q4 2024 earnings, but early success in Agentic AI positions it well for future growth. The company's Pro Plus AI offerings, featuring domain-specific language models, saw a stunning 150% quarter-over-quarter deal growth, indicating strong market demand. ServiceNow's fundamentals remain solid with a 21% increase in Q4 subscription revenue and a 98% renewal rate, despite missing some analysts' estimates.
ServiceNow, Alphabet, NVIDIA and DXC are included in this Analyst Blog.