Latest news with #ServiceNowInc
Globe and Mail
4 days ago
- Business
- Globe and Mail
ServiceNow Reports Strong Q2 2025 Financial Results
ServiceNow Inc ( (NOW)) has released its Q2 earnings. Here is a breakdown of the information ServiceNow Inc presented to its investors. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. ServiceNow Inc., a leader in AI-driven business transformation, operates in the technology sector, providing innovative solutions to enhance productivity and business outcomes across various industries. In its latest earnings report for the second quarter of 2025, ServiceNow exceeded its financial guidance, showcasing strong growth in subscription revenues and total revenues, both increasing by 22.5% year-over-year. The company reported substantial growth in its remaining performance obligations, indicating a robust pipeline and future revenue potential. Key financial highlights include subscription revenues of $3,113 million and total revenues of $3,215 million for Q2 2025. The company also reported a significant increase in the number of customers with more than $20 million in annual contract value, growing over 30% year-over-year. ServiceNow's strategic initiatives, such as the launch of AI Control Tower and AI Agent Fabric, have positioned it as a leader in AI-powered enterprise solutions, driving efficiency and business impact at scale. ServiceNow's strategic partnerships and acquisitions, including collaborations with AWS, NVIDIA, and the acquisition of have strengthened its AI capabilities and expanded its market reach. The company also announced its partnership with Ferrari and the launch of a secure cloud platform in Singapore, further demonstrating its commitment to global and industry expansion. Looking ahead, ServiceNow remains optimistic about its growth prospects, with a strong pipeline and expanding market opportunities. The company expects to achieve its $1 billion annual contract value target by 2026 and is well-positioned for continued success in the second half of the year, despite anticipated headwinds in Q3 2025 due to contractual obligations winding down.
Globe and Mail
21-07-2025
- Business
- Globe and Mail
Buy, Sell or Hold ServiceNow Stock? Key Tips Ahead of Q2 Earnings
ServiceNow NOW is scheduled to release its second-quarter 2025 results on July 23. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $3.12 billion, indicating 18.79% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is pegged at $3.54 per share, indicating growth of 13.1% from the figure reported in the year-ago quarter. The earnings figure has climbed a penny over the past 30 days. ServiceNow's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.61%. ServiceNow, Inc. Price and EPS Surprise ServiceNow, Inc. price-eps-surprise | ServiceNow, Inc. Quote Let's see how things are shaping up prior to this announcement. NOW's Q2 to Aid From Strong Subscription Revenue Growth ServiceNow expects second-quarter 2025 subscription revenues of $3.031 billion, suggesting 20% year over year on a non-GAAP basis. The Zacks Consensus Estimate for second-quarter 2025 subscription revenues is pegged at $3.03 billion, indicating 20.2% year-over-year growth. ServiceNow's AI-powered portfolio is helping the company win clients regularly. In the first quarter of 2025, the company reached 508 customers, generating more than $5 million in annual contract value (ACV), representing 20% year-over-year growth. NOW had 72 transactions of more than $1 million in net new ACV. The momentum is expected to have continued in the second quarter of 2025. ServiceNow's enterprise workflow automation suite has been gaining traction as enterprises increasingly adopt digital tools to streamline operations across departments. Through the Now platform, ServiceNow supports diverse workflows, ranging from IT service management and customer service to HR, employee experience and app development. However, NOW shares have suffered from a worsening macroeconomic environment due to higher tariffs and trade uncertainty. The company's federal business is expected to suffer from DOGE-related issues in the to-be-reported quarter. In first-quarter 2025, revenues from the U.S. public sector grew more than 30% year over year with six new logos. ServiceNow had 11 federal deals worth more than $1 million, including two that were over $5 million. NOW Shares Lag Sector, Beat Industry NOW shares have dropped 9.2% year to date (YTD), outperforming the Zacks Computer & Technology sector's return of 9.1%. However, ServiceNow shares have outperformed the Zacks Computers – IT Services industry's decline of 10.2%. NOW Stock's YTD Performance Since the company reported first-quarter 2025, NOW shares have returned 18.5%, underperforming the sector's return of 28.9% but outperforming the industry's appreciation of 7.8%. Technically, ServiceNow shares are displaying a bearish trend as they trade below the 50-day and 200-day moving averages. NOW Trades Below 50-day & 200-day SMAs ServiceNow's Value Score of F suggests a stretched valuation at this moment. In terms of the forward 12-month Price/Sales (P/S), NOW is trading at 13.92X, higher than the sector's 6.69X. Valuation: NOW Shares Overvalued NOW Benefits From Strong Portfolio, Rich Partner Base ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. NOW's expanding portfolio has been a major driver. In May 2025, the company introduced its Core Business Suite, an AI-powered solution designed to streamline and transform core business operations, including HR, finance, procurement, facilities and legal, by unifying workflows and automating processes across departments to improve efficiency, reduce time to value and enhance employee experiences. ServiceNow announced the launch of AI agents in its Security and Risk solutions, transforming enterprise security by enabling self-defending systems, improving response times, and enhancing risk management in collaboration with Microsoft MSFT and Cisco. Expanding its portfolio in May 2025, NOW announced advancements in autonomous IT, introducing agentic AI capabilities on the ServiceNow AI Platform to drive zero outages, zero downtime and zero service desk incidents. A rich partner base that includes the likes of Alphabet, Amazon AMZN, Microsoft and NVIDIA NVDA is noteworthy. In May 2025, NOW partnered with Amazon's cloud computing arm, Amazon Web Services, to launch a bi-directional data integration solution, enabling enterprises to unify data and trigger AI-powered workflows by connecting ServiceNow with Amazon Redshift. NVIDIA and NOW collaborated to launch AI agents for the telecom industry. The AI agents were built with NVIDIA AI Enterprise software and the AI platform NVIDIA DGX Cloud. ServiceNow has expanded its partnership with NVIDIA to enhance agentic AI by integrating NVIDIA Llama Nemotron reasoning models and AI agent evaluation tools into the ServiceNow Platform for optimized business transformation. Acquisitions have also played an important role in expanding NOW's portfolio. In April 2025, ServiceNow announced the acquisition of a company specializing in AI-powered and Configure, Price, Quote solutions. This move is set to bolster ServiceNow's CRM offerings, particularly in sales and order management, by integrating advanced AI capabilities. The Moveworks acquisition combines ServiceNow's agentic AI and automation strengths with Moveworks' front-end AI assistant and enterprise search technology. Conclusion ServiceNow's robust GenAI portfolio and strong partner base are expected to drive its subscription revenues in the long term. However, tariff-related headwinds are major concerns along with a stretched valuation. ServiceNow currently has a Zacks Rank #3 (Hold), which implies investors should wait for a favorable point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report
Yahoo
18-07-2025
- Business
- Yahoo
ServiceNow (NOW) Analysts at Cantor Fitzgerald Raise Target to $1,200 on Strong Q2 Setup
ServiceNow, Inc. (NYSE:NOW) is one of the . On July 16, Cantor Fitzgerald analyst Thomas Blakey raised the price target on the stock to $1,200.00 (from $1,048.00) while maintaining an 'Overweight' rating. In an investor note, the firm mentioned that it is positive on the shares heading into Q2 earnings. Partner commentary has revealed that there are 'accelerating business trends' compared to the first quarter, which stands as a major factor behind the bullish rating. Moreover, 'de-risked management assumptions' in ServiceNow's Federal business segment have also contributed to the firm's positive view. The research firm also pointed out that if there is an increased adoption of Pro Plus and Now Assist Consumption, it could lead to potential positive revenue revisions related to AI initiatives in 2026. A senior manager studying a market index alongside a team of young stock market analysts. ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise. While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Was Jim Cramer Right About ServiceNow Inc. (NOW)?
We recently published a list of . In this article, we are going to take a look at where ServiceNow Inc. (NYSE:NOW) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 15, a retired investor asked Cramer if he should add to his small position in ServiceNow Inc. (NYSE:NOW). Cramer gave a clear buy recommendation: 'I would buy more. I mean, I feel like I wanted to buy that stock for the trust. We owned so many in the space, we felt that we couldn't. But that was a nice break before the quarter. When the quarter reported, it really wasn't a bad quarter — and I think the stock's a buy right here. ServiceNow.' He called it a buy, and the market agreed as the stock gained 37.23% since. A team of software engineers at desks working on code for a cutting-edge cloud computing solution. ServiceNow Inc. (NYSE:NOW) is riding the enterprise digitization wave as its workflow automation tools prove indispensable to large corporations. Cramer remains a clear bull. Here are his remarks from earlier in May 2025: 'Right, and we want to come back to it. It was a big guide up and it had rule of 50, it had great growth, great margins. This Truist piece today, Hold to Buy, it does say something that I think people have to recognize. This company's not a leader in AI. And I don't even know if Jensen Huang has [inaudible] in terms of what, when you bring someone in, you can either build your own AI or you can call ServiceNow and they'll build it for you. Even for customer relationship management. So I think you maybe want to circle back to the one that was as good last week as the one perceived now. Bill McDermott, credit to him, he's picked up a huge number of accounts. Overall, NOW ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NOW and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-05-2025
- Business
- Bloomberg
ServiceNow Loses Top Sales Leaders in Executive Shuffle
Two top ServiceNow Inc. leaders are leaving the software company as it reshapes the upper ranks of its sales division. Executive Vice President Erica Volini and Ulrik Nehammer, chairman of the international business, are departing, a ServiceNow spokesperson said. 'These changes are part of regular business rhythms as we determine the future direction of our sales and go-to-market organizations to scale to the next phase of ServiceNow growth,' the spokesperson said.
