ServiceNow (NOW) ended the recent trading session at $158.62, demonstrating a +1.03% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.52%. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 0.21%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 13.95% over the past month, outpacing the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on October 28, 2026. On that day, ServiceNow is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.09 billion, up 19.96% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.06 per share and a revenue of $16.17 billion, representing changes of +15.67% and +21.8%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, ServiceNow holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, ServiceNow is presently being traded at a Forward P/E ratio of 38.66. This expresses a premium compared to the average Forward P/E of 16.03 of its industry.
We can additionally observe that NOW currently boasts a PEG ratio of 1.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.38.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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ServiceNow, Inc. (NOW): Free Stock Analysis Report
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