ServiceNow (NOW) Q4 Results Preview: Key Points To Watch

ServiceNow Set to Announce Quarterly Results

This Wednesday afternoon, ServiceNow (NYSE:NOW), a leader in enterprise workflow automation, is scheduled to release its latest financial results. Here’s an overview of what investors can anticipate.

In the previous quarter, ServiceNow surpassed Wall Street’s revenue projections by 1.4%, posting $3.41 billion in revenue—a 21.8% increase compared to the same period last year. The company delivered a strong performance, outperforming EBITDA forecasts, though it fell short of analysts’ expectations for billings.

Should You Consider ServiceNow Before Earnings?

Curious whether ServiceNow is a buy or sell ahead of its earnings release?

Analyst Expectations for This Quarter

For the upcoming quarter, analysts predict ServiceNow’s revenue will reach $3.53 billion, reflecting a 19.4% year-over-year increase. This growth rate is slightly slower than the 21.3% rise recorded in the same quarter last year. Adjusted earnings per share are forecasted at $0.89.

ServiceNow Total Revenue

Over the past month, analysts have largely maintained their forecasts, indicating confidence in the company’s trajectory as it approaches earnings. Notably, ServiceNow has only missed revenue expectations once in the last two years, typically exceeding estimates by an average of 1.1%.

Market Context and Peer Comparison

As the first among its industry peers to report this season, ServiceNow’s results will set the tone for productivity software stocks. The sector has experienced a downturn recently, with peer companies seeing an average decline of 6.8% over the past month. ServiceNow’s shares have dropped 11.4% in the same period. Heading into earnings, the consensus analyst price target stands at $206.29, compared to the current share price of $136.99.

Spotlight: Share Buybacks and a Special Opportunity

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