ServiceNow Analysts Boost Their Forecasts Following Upbeat Q3 Earnings

ServiceNow Inc NOW reported stronger-than-expected results for its third quarter after the market close on Wednesday.

ServiceNow reported third-quarter revenue of $2.797 billion, beating the consensus estimate of $2.743 billion. The company reported third-quarter adjusted earnings of $3.72 per share, beating analyst estimates of $3.46 per share, according to Benzinga Pro.

"ServiceNow raised our full-year topline guidance on the strength of our Q3 results, once again going beyond expectations. This remarkable momentum stems from both existing and new customers doubling down on their investments in ServiceNow as the AI platform for business transformation," said Bill McDermott, chairman and CEO of ServiceNow.

ServiceNow expects fourth-quarter subscription revenue of $2.875 billion to $2.88 billion. The company expects full-year subscription revenue of $10.655 billion to $10.66 billion versus estimates of $10.806 billion.

ServiceNow shares fell 1.1% to close at $907.68 on Wednesday.

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

• Needham analyst Mike Cikos maintained ServiceNow with a Buy and raised the price target from $900 to $1,075.
• Canaccord Genuity analyst David Hynes maintained ServiceNow with a Buy and raised the price target from $850 to $1,000.
• Baird analyst Rob Oliver maintained the stock with an Outperform and raised the price target from $900 to $975.
• JP Morgan analyst Mark Murphy maintained ServiceNow with an Overweight and boosted the price target from $820 to $950.

Considering buying NOW stock? Here’s what analysts think:

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