JPMorgan Says Investors May Be 'Too Pessimistic' On ServiceNow Ahead Of Earnings

ServiceNow Inc NOW gears up to report quarterly results, while investor concerns are focused on "uncertainty and volatility around the Department of Government Efficiency (DOGE), tariffs and government policy, and the state of the global economy," according to JPMorgan.

The ServiceNow Analyst: Analyst Mark Murphy reaffirmed an Overweight rating and price target of $970.

The ServiceNow Thesis: Companies are likely debating whether to proactively trim guidance, "even if they feel it is unnecessary at this juncture," Murphy said in the note.

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While there are risks and uncertainties related to government tariffs and policies, investors seem to have become "too pessimistic near-term," considering the pressure on the shares of ServiceNow and other software companies, he added.

Investors are "not adequately recognizing the potential for de-escalation to alter their viewpoints, while FX movement is highly favorable for revisions," the analyst wrote.

Some of the FX headwind that companies had embedded in their initial 2025 guidance could be less than expected, while in some cases these could turn into an FX tailwind, he further stated.

NOW Price Action: Shares of ServiceNow had risen by 5.85% to $811.72 at the time of publication on Wednesday.

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