ServiceNow Inc (NYSE:NOW) reported stronger-than-expected financial results for the second quarter on Wednesday.

ServiceNow reported second-quarter revenue of $2.627 billion, beating the consensus estimate of $2.607 billion, according to Benzinga Pro. The company reported quarterly earnings of $3.13 per share, beating analyst estimates of $2.84 per share, according to data from Benzinga Pro.

"ServiceNow's elite-level execution is reflected in our continued outperformance across all topline growth and profitability metrics," said Bill McDermott, chairman and CEO of ServiceNow. "Our relevance as the AI platform for business transformation remains stronger than ever as CEOs are looking for new vectors of growth, simplification, and digitization. ServiceNow intends to reinvent every workflow, in every company, in every industry with GenAI at the core."

ServiceNow said it expects third-quarter subscription revenue of $2.66 billion to $2.665 billion, representing growth of 20% to 20.5% on a year-over-year basis. The company also guided for a third-quarter operating margin of 29.5%. ServiceNow sees full-year 2024 subscription revenue in the range of $10.575 billion and $10.585 billion.

ServiceNow shares gained 15.5% to trade at $843.97 on Thursday.

These analysts made changes to their price targets on ServiceNow following the announcement.

• Baird analyst Rob Oliver maintained ServiceNow with an Outperform rating, while raising the price target from $885 to $900.
• Piper Sandler analyst Rob Owens maintained the stock with an Overweight rating, while increasing the price target from $830 to $850.
• Canaccord Genuity analyst David Hynes maintained ServiceNow with a Buy rating, while increasing the price target from $835 to $850.
• Stifel analyst Brad Reback maintained the stock with a Buy rating, while raising the price target from $820 to $900.
• JP Morgan analyst Mark Murphy maintained the stock with an Overweight rating, while boosting the price target from $780 to $820.
• Truist Securities analyst Joel Fishbein maintained ServiceNow with a Hold rating and raised the price target from $750 to $780.
• BMO Capital analyst Keith Bachman maintained ServiceNow with an Outperform rating, while increasing the price target from $830 to $860.
• RBC Capital analyst Matthew Hedberg maintained the stock with an Outperform rating and raised the price target from $850 to $880.
• Deutsche Bank analyst Brad Zelnick maintained ServiceNow with a Buy rating and increased the price target from $875 to $900.

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