DailyIQ
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Sector:TechnologyAll sectors
Last updated 4 minutes ago

NOW·ServiceNow, Inc.

$.
-. (-.%)
After Hours
High
$108.75
Open
$106.50
Market Cap
108.13B
52W High
$210.20
Low
$104.00
P. Close
$104.75
P/E
61.54
52W Low
$81.24
Fwd P/E
122.67
DailyIQ Est.
$157.51
Technical Score (1D)
68
BUY
News Sentiment
71
BULLISH
UBS recently adjusted its valuation of ServiceNow, moving the target to $115, though the direction of the adjustment is unclear because one report says the target was lowered to $115 from $100 while another says it was raised to the same level. The neutral rating remains unchanged, indicating that UBS sees the company as neither a clear buy nor sell at present. Analysts are highlighting the company’s expanding AI monetization as a key growth driver, with a forward‑earnings valuation of 26× positioning NOW as an attractive buy relative to peers. The AI focus is expected to lift revenue and deepen platform adoption, which could justify the higher price target. However, the market reaction to IBM’s preliminary Q2 results has caused a temporary dip in ServiceNow shares, reflecting broader sector volatility rather than a company‑specific issue. This sympathy move suggests that short‑term price swings may be driven by sentiment rather than fundamentals. Traders should monitor the upcoming earnings release for guidance that could confirm or refute the UBS target and clarify the impact of AI initiatives. Additionally, watch for any analyst revisions or new data on cloud platform growth that could shift the valuation outlook. In the next 1–10 trading days, the key watch items will be the earnings guidance, AI revenue traction, and any resolution of the conflicting UBS reports.
Earnings Summary
ServiceNow, Inc., headquartered in Santa Clara, California, is a global provider of cloud‑based digital workflow solutions that empower enterprises to streamline operations across IT, customer service, HR, and security, positioning it as a leading player in the enterprise software market. In the latest quarter, the company posted earnings per share of $0.734 against an estimate of $0.733 and revenue of $2.957 billion, a modest increase from the $2.808 billion reported in Q1 2025, and continuing a steady upward trend that reached $3.568 billion in Q4 2025. ServiceNow has consistently outperformed analyst expectations, beating estimates in every quarter from Q4 2024 through Q4 2025, with only a slight miss in Q1 2026 where EPS of $0.970 fell short of the $0.973 estimate. Over the past year, the company has maintained a robust year‑over‑year revenue growth, rising from $2.957 billion in Q4 2024 to $3.568 billion in Q4 2025, while EPS growth accelerated from $0.734 to $0.920, underscoring strong profitability. Recent news highlights the launch of the Control Tower AI platform and a new AI‑assist contract target, signaling a strategic push to monetize AI within its workflow suite; however, analysts have expressed concerns over margin pressure and slower revenue growth, reflected in a price‑target cut by Goldman Sachs. Investors should watch the upcoming earnings release for guidance on the contribution of the $1 B AI ARR and the adoption rate of the Control Tower, monitor the pace of partnership revenue from Accenture and Hitachi, and stay alert to macro‑economic data that could affect enterprise IT spending and SaaS valuations.

EPS

EstBeatMiss
$0.67$0.76$0.84$0.93$1.01Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.86 - -
Q1'26$0.97$0.97-0.3%
Q4'25$0.89$0.92+3.2%
Q3'25$0.85$0.96+13.0%
Q2'25$0.71$0.82+14.6%
Q1'25$0.77$0.81+5.4%

Revenue

EstBeatMiss
$3.0B$3.2B$3.5B$3.8B$4.1BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$4.0B - -
Q1'26$3.8B$3.8B-0.3%
Q4'25$3.6B$3.6B+0.2%
Q3'25 - $3.4B -
Q2'25 - $3.2B -
Q1'25 - $3.1B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

NOW Stock Snapshot

NOW is currently trading at $104.90, giving ServiceNow, Inc. a market cap of 108.13B and a P/E ratio of 61.5. Today's range spans $104.00–$108.75, with shares opening at $106.50 and moving up $0.15 (0.1%) from the prior close. DailyIQ's technical score sits at 68/100 (BUY) with a news sentiment reading of 71/100.

Over the past year NOW has traded between $81.24 and $210.20 - the current price is +29.1% off the 52-week low and -50.1% from the high. 55 analysts cover the stock with a Buy consensus and a mean 12-month target of $140.95 (range $85.00–$236.00), implying upside of +34.4%.

In the Technology peer group, ServiceNow, Inc. (NOW) stands out for a BUY signal backed by aligned sentiment - score 68/100, sentiment bullish at 71/100, price $104.90 (in the lower half of its 52-week range). (P/E: 61.5) With 108.13B in market cap, this is large enough to feature on institutional watch lists but small enough to re-rate meaningfully on a positive earnings surprise. The 52-week span of $81.24–$210.20 shows the stock has already proven it can make significant moves.

What makes NOW's BUY setup (68/100) particularly actionable at 108.13B in Technology capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $104.90 (in the lower half of its 52-week range in $81.24–$210.20), with sentiment running bullish at 71/100, the setup rewards conviction-sized positioning more than it does speculative small bets.