ServiceNow (NOW) closed the most recent trading day at $87.79, moving -1.43% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.96%.
The maker of software that automates companies' technology operations's stock has dropped by 22.48% in the past month, falling short of the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. The company plans to announce its earnings on April 22, 2026. In that report, analysts expect ServiceNow to post earnings of $0.95 per share. This would mark year-over-year growth of 17.28%. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 21.39% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $15.98 billion. These totals would mark changes of +17.95% and +20.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 21.5. This denotes a premium relative to the industry average Forward P/E of 12.77.
Meanwhile, NOW's PEG ratio is currently 0.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.11.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow, Inc. (NOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).