ServiceNow (NYSE:NOW) is gearing up to announce its quarterly earnings on Wednesday, 2025-10-29. Here's a quick overview of what investors should know before the release.
Analysts are estimating that ServiceNow will report an earnings per share (EPS) of $3.49.
The announcement from ServiceNow is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
During the last quarter, the company reported an EPS beat by $1.27, leading to a 4.16% increase in the share price on the subsequent day.
Here's a look at ServiceNow's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.82 | 3.84 | 3.66 | 3.46 |
| EPS Actual | 4.09 | 4.04 | 3.67 | 3.72 |
| Price Change % | 4.00 | 15.00 | -11.00 | 5.00 |
Tracking ServiceNow's Stock Performance
Shares of ServiceNow were trading at $946.29 as of October 27. Over the last 52-week period, shares are down 0.12%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Insights on ServiceNow
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on ServiceNow.
ServiceNow has received a total of 3 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $1208.33, the consensus suggests a potential 27.69% upside.
Analyzing Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of Palo Alto Networks, CrowdStrike Holdings and Fortinet, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Palo Alto Networks, with an average 1-year price target of $219.14, suggesting a potential 76.84% downside.
- Analysts currently favor an Outperform trajectory for CrowdStrike Holdings, with an average 1-year price target of $495.36, suggesting a potential 47.65% downside.
- Analysts currently favor an Neutral trajectory for Fortinet, with an average 1-year price target of $85.88, suggesting a potential 90.92% downside.
Comprehensive Peer Analysis Summary
The peer analysis summary presents essential metrics for Palo Alto Networks, CrowdStrike Holdings and Fortinet, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| ServiceNow | Outperform | 22.38% | $2.49B | 3.65% |
| Palo Alto Networks | Outperform | 15.84% | $1.86B | 3.37% |
| CrowdStrike Holdings | Outperform | 21.28% | $858.67M | -2.16% |
| Fortinet | Neutral | 13.64% | $1.32B | 21.88% |
Key Takeaway:
ServiceNow ranks at the top for Revenue Growth among its peers. It also leads in Gross Profit. However, it has the lowest Return on Equity compared to its peers.
Get to Know ServiceNow Better
ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.
ServiceNow's Economic Impact: An Analysis
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: ServiceNow's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 22.38%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: ServiceNow's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 11.98%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): ServiceNow's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.65% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): ServiceNow's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.79%, the company showcases efficient use of assets and strong financial health.
Debt Management: ServiceNow's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.22.
To track all earnings releases for ServiceNow visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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