ServiceNow (NOW) closed the most recent trading day at $966.97, moving +1.05% from the previous trading session. This change outpaced the S&P 500’s 0.32% gain on the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%.
Shares of the maker of software that automates companies’ technology operations witnessed a loss of 4.78% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.22%, and the S&P 500’s gain of 4.51%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on July 23, 2025. The company is forecasted to report an EPS of $3.54, showcasing a 13.1% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.12 billion, up 18.79% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.54 per share and a revenue of $13.01 billion, indicating changes of +18.82% and +18.43%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. ServiceNow presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 57.87. This indicates a premium in contrast to its industry’s Forward P/E of 18.94.
Also, we should mention that NOW has a PEG ratio of 2.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Computers – IT Services industry was having an average PEG ratio of 1.92.
