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Key Stats for ServiceNow Stock
- Price Change for ServiceNow stock: 7%
- Current Share Price: $1,025
- 52-Week High: $1,198
- NOW Stock Price Target: $1,099
What Happened?
ServiceNow (NOW) stock is up 7% following the enterprise software company’s impressive second-quarter results that beat Wall Street expectations across all key metrics.
ServiceNow reported adjusted earnings per share of $4.09, crushing the $3.57 estimate, while revenue of $3.22 billion topped the $3.12 billion forecast.
Subscription revenues, which comprise the majority of ServiceNow’s business, reached $3.11 billion, exceeding the $3.03 billion StreetAccount estimate.
ServiceNow also raised its full-year subscription revenue guidance to $12.775 billion to $12.795 billion, reflecting strong demand for its AI-powered workflow solutions.
CEO Bill McDermott highlighted the company’s leadership in “agentic AI,” noting that “every business process in every industry is being refactored for agentic AI.”
The software giant’s Now Assist AI products continued to outperform expectations, with deal counts increasing by over 50% quarter-over-quarter, as ServiceNow closed its largest Now Assist deal to date at over $20 million.
See analysts’ growth forecasts and price targets for ServiceNow (It’s free!) >>>
What the Market Is Telling Us About ServiceNow Stock
The strong rally reflects investor confidence in ServiceNow’s positioning as a leader in enterprise AI transformation.
With subscription revenue growing 21.5% and operating margins reaching 29.5%, well above guidance, the market is rewarding ServiceNow’s ability to capitalize on the AI boom while maintaining profitability.
Despite some uncertainty around federal government budgets, CFO Gina Mastantuono expressed confidence that the company’s guidance appropriately reflects potential headwinds.
The beat-and-raise quarter demonstrates ServiceNow’s resilience and its ability to benefit from enterprises’ urgent need to integrate AI into their workflows, positioning it as a critical platform for business transformation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
