Why ServiceNow Stock Is Trading Higher

ServiceNow Inc NOW shares are trading higher Thursday after the company reported better-than-expected financial results. 

ServiceNow said first-quarter revenue increased 27% year-over-year to $1.72 billion, which beat the $1.7 billion estimate, according to data from Benzinga Pro. Subscription revenues totaled $1.63 billion in the first quarter. 

The company reported quarterly adjusted earnings of $1.73 per share, which beat the estimate of $1.70 per share.

"While enterprises are navigating a complex macro environment, our ability to continue delivering strong results exemplifies the resiliency of our business and the mission-critical nature of the Now Platform," said Gina Mastantuono, CFO of ServiceNow.

ServiceNow expects second-quarter subscription revenues to grow about 26% year-over-year to a range of $1.67 billion to $1.675 billion.

Analyst Assessment: 

• Citigroup analyst Tyler Radke maintained ServiceNow with a Buy rating and raised the price target from $623 to $656
• BMO Capital analyst Keith Bachman maintained ServiceNow with an Outperform rating and raised the price target from $570 to $595.
• RBC Capital analyst Matthew Hedberg maintained ServiceNow with an Outperform rating and raised the price target from $660 to $670.

See Also: Qualcomm Shares Are Rising: Here's Why

NOW 52-Week Range: $448.27 - $707.60

The stock was up 7.12% at $499.38 at time of publication.

Photo: Donny Gonzo from Flickr.