What's Going On With ServiceNow Shares Thursday?

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

What To Know: The company reported adjusted earnings per share of $4.04, beating analysts’ estimate of $3.84. In addition, the company reported sales of $3.09 billion, beating analysts’ estimate of $3.08 billion and representing an 18.5% year-over-year increase.

The company reported $10.31 billion in current remaining performance obligations and a total of $22.1 billion in remaining performance obligations.

During the first-quarter, the company repurchased roughly 316,000 shares for $298 million. It still has about $3 billion remaining under its buyback authorization.

“ServiceNow’s position as the platinum standard for enterprise-grade AI drove these outstanding first quarter results,” said ServiceNow Chairman and CEO Bill McDermott. “Our platform is delivering real business transformation to empower CEOs with speed and agility to lead through this fast-changing environment. ServiceNow is meeting the moment, driving immediate value creation for customers and shareholders.”

Analyst Changes: Following the earnings report, multiple analysts raised their price targets.

• Canaccord Genuity analyst Richard Davis maintained a Buy rating on ServiceNow and raised the price target from $900 to $1075.
• Baird analyst Rob Oliver maintained an Outperform rating on ServiceNow and raised the price target from $1010 to $1150.
• Evercore ISI Group analyst Kirk Materne maintained an Outperform rating on ServiceNow and raised the price target from $925 to $1000.
• Wells Fargo analyst Michael Turrin maintained an Overweight rating on ServiceNow and raised the price target from $1100 to $1150.

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NOW Price Action: At the time of publication, ServiceNow shares are trading 13.6% higher at $922.55, according to data from Benzinga Pro.

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