ServiceNow, Inc. (NOW)
NOW Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Gain
NOW's resilient subscription base and AI push drive growth in first-quarter 2025. However, soft guidance and macro pressures pose near-term risks.
ServiceNow: Q1, No Slowdown Ahead
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: Great Quarter, Even Greater Guidance
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. (NOW) Q1 2025 Earnings Call Transcript
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.
Here's What Key Metrics Tell Us About ServiceNow (NOW) Q1 Earnings
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) Surpasses Q1 Earnings and Revenue Estimates
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.
ServiceNow dodges the dreaded DOGE hit
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.
ServiceNow Bumps Up Annual Guidance as Government Business Grows
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's stock pops as earnings beat quiets ‘DOGE' fears
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 posts upbeat quarterly profit on resilient AI-powered software demand
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.
Should You Buy, Sell or Hold ServiceNow Stock Before Q1 Earnings?
Although NOW's strong portfolio and rich partner base are noteworthy, unfavorable forex, tariffs and stretched valuation are major concerns ahead of Q1 earnings.
Is ServiceNow stock a buy or a sell ahead of 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.
