ServiceNow (NOW) closed at $141.34 in the latest trading session, marking a -4.87% move from the prior day. This change lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
The maker of software that automates companies' technology operations's stock has climbed by 7.29% in the past month, exceeding the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on October 28, 2026. The company is expected to report EPS of $1.02, up 6.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.09 billion, up 19.96% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $4.06 per share and revenue of $16.17 billion. These results would represent year-over-year changes of +15.67% and +21.8%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow presently features a Zacks Rank of #3 (Hold).
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 36.58. This expresses a premium compared to the average Forward P/E of 14.61 of its industry.
Also, we should mention that NOW has a PEG ratio of 1.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry had an average PEG ratio of 1.32 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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ServiceNow, Inc. (NOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).