Latest news with #ServiceNow
Globe and Mail
4 hours ago
- Business
- Globe and Mail
ServiceNow Trades 16% Below 52-Week High: Buy, Sell or Hold the Stock?
ServiceNow NOW shares closed at $1,011.89 on Tuesday (July 2), roughly 15.5% below the 52-week high of $1,198.09 it hit on Jan. 28, 2025. NOW shares have dropped 4.5% year to date (YTD), underperforming the Zacks Computer and Technology sector's return of 5.7% but outperforming the Zacks Computers – IT Services industry's drop of 6.3%. NOW shares have suffered from a worsening macroeconomic environment following U.S. President Donald Trump's decision to levy tariffs on trading partners, including China and Mexico. The company's federal business is expected to suffer from DOGE-related issues. ServiceNow expects unfavorable forex impacts of $175 million for 2025 and back-end loaded federal business is expected to hurt the growth rate. ServiceNow's strategy to accelerate the adoption of its Agentic AI by foregoing immediate revenues is expected to affect the subscription revenue growth rate in 2025. NOW Stock's Performance However, since reporting first-quarter 2025 results on April 23, ServiceNow shares have jumped 24.5%. NOW has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. The company's expanding portfolio, accretive acquisitions and a rich partner base are the key catalysts. Technically, ServiceNow's stock is displaying a bullish trend as it is trading above both 200-day and 50-day moving averages. NOW Trades Above 50-day & 200-day SMAs So, what should investors do with the NOW stock? Let us dig deeper to find out. Strong Portfolio & Acquisitions Aid NOW's Prospects NOW's expanding portfolio has been a major driver. In May 2025, ServiceNow introduced its Core Business Suite, an AI-powered solution designed to streamline and transform core business operations, including HR, finance, procurement, facilities and legal, by unifying workflows and automating processes across departments to improve efficiency, reduce time to value and enhance employee experiences. ServiceNow announced the launch of AI agents in its Security and Risk solutions, transforming enterprise security by enabling self-defending systems, improving response times, and enhancing risk management in collaboration with Microsoft MSFT and Cisco. Expanding its portfolio in May 2025, NOW announced advancements in autonomous IT, introducing agentic AI capabilities on the ServiceNow AI Platform to drive zero outages, zero downtime and zero service desk incidents. ServiceNow's enterprise workflow automation suite has been gaining traction as enterprises increasingly adopt digital tools to streamline operations across departments. Through the Now platform, ServiceNow supports diverse workflows, ranging from IT service management and customer service to HR, employee experience and app development. Acquisitions have also played an important role in expanding NOW's portfolio. In April 2025, ServiceNow announced the acquisition of a company specializing in AI-powered and Configure, Price, Quote solutions. This move is set to bolster ServiceNow's CRM offerings, particularly in sales and order management, by integrating advanced AI capabilities. ServiceNow's expanding platform is driving enterprise adoption. In the first quarter of 2025, the company reached 508 customers, generating more than $5 million in ACV, representing 20% year-over-year growth. Expanding customer base is driving subscription revenues, which hit $3.01 billion in the first quarter of 2025, reflecting year-over-year growth of 20% in constant currency. NOW Benefits From Expanding Partner Base A rich partner base that includes the likes of Alphabet, Amazon AMZN, Microsoft and NVIDIA NVDA is noteworthy. In May 2025, NOW partnered with Amazon's cloud computing arm, Amazon Web Services, to launch a bi-directional data integration solution, enabling enterprises to unify data and trigger AI-powered workflows by connecting ServiceNow with Amazon Redshift. NVIDIA and NOW collaborated to launch AI agents for the telecom industry. The AI agents were built with NVIDIA AI Enterprise software and the AI platform NVIDIA DGX Cloud. ServiceNow has expanded its partnership with NVIDIA to enhance agentic AI by integrating NVIDIA Llama Nemotron reasoning models and AI agent evaluation tools into the ServiceNow Platform for optimized business transformation. NOW's Earnings Estimate Revision Shows Upward Trend The Zacks Consensus Estimate for 2025 earnings is pegged at $16.54 per share, up by a penny over the past 30 days, indicating an 18.82% increase from the 2024 reported figure. The consensus mark for second-quarter 2025 earnings is pegged at $3.54 per share, up by a penny over the past 30 days, suggesting year-over-year growth of 13.1%. ServiceNow Stock Seems Overvalued NOW stock is overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales, NOW is trading at 14.75X, higher than the broader sector's 6.51X. Price/Sales Ratio (F12M) Conclusion ServiceNow's expanding portfolio and strong partner base are expected to drive its clientele, boosting subscription revenues. However, unfavorable forex amid a challenging macroeconomic environment is concerning. NOW's stretched valuation makes the stock unattractive for value investors. ServiceNow currently has a Zacks Rank #3 (Hold), which implies that investors should stay away from the stock for the time being. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report
Globe and Mail
6 hours ago
- Business
- Globe and Mail
ServiceNow to Announce Second Quarter 2025 Financial Results on July 23
ServiceNow (NYSE: NOW) today announced that it will release financial results for the second quarter ended June 30, 2025, following the close of market on Wednesday, July 23, 2025. ServiceNow will host a conference call and live webcast to discuss the financial results. Conference Call Details The conference call will begin at 2 p.m. Pacific Daylight Time (21:00 GMT) on July 23, 2025. Interested parties may listen to the call by dialing (888) 330‑2455 (Passcode: 8135305), or if outside North America, by dialing (240) 789‑2717 (Passcode: 8135305). Individuals may access the live teleconference from this webcast ( An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial (800) 770‑2030 (Passcode: 8135305), or if outside North America, by dialing (647) 362‑9199 (Passcode: 8135305). About ServiceNow ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit:
Business Wire
7 hours ago
- Business
- Business Wire
ServiceNow to Announce Second Quarter 2025 Financial Results on July 23
SANTA CLARA, Calif.--(BUSINESS WIRE)-- ServiceNow (NYSE: NOW) today announced that it will release financial results for the second quarter ended June 30, 2025, following the close of market on Wednesday, July 23, 2025. ServiceNow will host a conference call and live webcast to discuss the financial results. Conference Call Details The conference call will begin at 2 p.m. Pacific Daylight Time (21:00 GMT) on July 23, 2025. Interested parties may listen to the call by dialing (888) 330‑2455 (Passcode: 8135305), or if outside North America, by dialing (240) 789‑2717 (Passcode: 8135305). Individuals may access the live teleconference from this webcast ( An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial (800) 770‑2030 (Passcode: 8135305), or if outside North America, by dialing (647) 362‑9199 (Passcode: 8135305). About ServiceNow ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit:
Yahoo
16 hours ago
- Business
- Yahoo
ServiceNow (NOW) Declines More Than Market: Some Information for Investors
ServiceNow (NOW) ended the recent trading session at $1,011.89, demonstrating a -1.57% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq decreased by 0.82%. The maker of software that automates companies' technology operations's shares have seen an increase of 1.58% over the last month, not keeping up with the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.17%. Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.54, up 13.1% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.12 billion, indicating a 18.79% growth compared to the corresponding quarter of the prior year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.54 per share and a revenue of $13.01 billion, signifying shifts of +18.82% and +18.43%, respectively, from the last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. ServiceNow is currently a Zacks Rank #3 (Hold). From a valuation perspective, ServiceNow is currently exchanging hands at a Forward P/E ratio of 62.17. This expresses a premium compared to the average Forward P/E of 19.73 of its industry. Also, we should mention that NOW has a PEG ratio of 2.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.17 based on yesterday's closing prices. The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 250 industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceNow, Inc. (NOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
NOW vs. TYL: Which Cloud-Based Enterprise Software Stock Has an Edge?
ServiceNow NOW and Tyler Technologies TYL are well-known providers of cloud-based enterprise software stocks. Both are helping enterprises in digital transformation through their respective cloud-supported solutions. However, customer focus is different as ServiceNow's solutions cater to large enterprises (financial services, healthcare and life sciences, manufacturing, public sector, retail, technology and telecom), while Tyler is a pure-play government software transformation offers a massive growth opportunity, driven by the growing adoption of cloud computing and artificial intelligence (AI). Per IDC estimates, the digital transformation market is expected to hit roughly $4 trillion by 2027, seeing a CAGR of 16.2% over the 2022-2027 timeframe. Both NOW and Tyler are well-poised to benefit from this higher spending trend. ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. A strong portfolio and rich partner base are expanding NOW's clientele. Exiting first-quarter 2025, ServiceNow had 72 transactions of more than $1 million in net new annual contract value (ACV). The company expanded its customer relationships, reaching 508 customers with more than $5 million in ACV at the end of the reported quarter, which represents 20% year-over-year customer expanding portfolio has been a key catalyst. In May 2025, ServiceNow introduced its Core Business Suite, an AI-powered solution designed to streamline and transform core business operations, including HR, finance, procurement, facilities and legal, by unifying workflows and automating processes across departments to improve efficiency, reduce time to value, and enhance employee launch of AI agents in ServiceNow's Security and Risk solutions transforms enterprise security by enabling self-defending systems, improving response times, and enhancing risk management. The solution is developed in collaboration with Microsoft and Cisco. NOW also announced advancements in autonomous IT, introducing agentic AI capabilities on the ServiceNow AI Platform to drive zero outages, zero downtime and zero service desk expects second-quarter subscription revenues to be $3.03-$3.035 billion, which suggests a rise of 19% to 19.5% year over year on a GAAP basis and 19.5% on a constant currency basis. Tyler offers mission-critical software to the public sector that handles essential services like 911, dispatch, court, permits, licenses, land records, utilities, and property taxes. Property taxes are the primary source of revenues for local government entities, and are fairly stable in nature, which makes Tyler's revenue base less volatile. Tyler is benefiting from the public sector's ongoing transition from on-premise and outdated systems to scalable cloud-based systems. The multi-year transition is expected to boost Tyler's recurring revenues, which currently account for approximately 80% of revenues. Strong adoption of cloud-based systems is expected to drive subscription revenues, Tyler's fastest-growing revenue category over the past seven have played a major role in shaping Tyler's growth trajectory. The company has acquired 14 businesses in the last five years. The acquisition of Computing System Innovations (CSI) is noteworthy. CSI's flagship product, Intellidact Platform, is a suite of applications that enhance document processing and identity protection with AI technology. This platform increases workflow efficiencies through automated document classification and data extraction, while using redaction to reduce the risk of privacy information leakage. The integration of CSI's AI-driven redaction and indexing solution, Intellidact Platform, to Tyler's eFile & Serve solution portfolio is a key Technologies now projects full-year 2025 revenues between $2.31 billion and $2.35 billion. The Zacks Consensus Estimate for revenues is currently pegged at $2.33 billion, indicating 8.94% year-over-year growth. The Zacks Consensus Estimate for NOW's 2025 earnings is pegged at $16.54 per share, up by a penny over the past 30 days, indicating an 18.82% increase over fiscal 2024's reported figure. ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote However, the consensus mark for Tyler's 2025 has declined by a penny to $11.13 per share over the past 30 days, suggesting 16.54% growth over 2024. Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote Both NOW's and TYL's earnings beat the Zacks Consensus Estimate in all the trailing four quarters. ServiceNow's average surprise of 6.61% is much better than Tyler's surprise of 3.82%, reflecting a good quality of earnings beat on a consistent basis. While ServiceNow shares have declined 4.4%, Tyler climbed 1.9%, year to date. Image Source: Zacks Investment Research Valuation-wise, both ServiceNow and Tyler are overvalued, as suggested by the Value Score of F. However, in terms of forward 12-month Price/Sales, Tyler shares are trading at 10.48X, lower than NOW's 14.99X. Image Source: Zacks Investment Research Both ServiceNow and Tyler Technologies benefit from strong demand for digital transformation amid challenging macroeconomic conditions and lingering concerns related to tariffs. NOW's strong portfolio, acquisitions, and rich partner base are noteworthy compared to Tyler, which is suffering from stiff competition and challenging macroeconomic with a Zacks Rank #3 (Hold), currently has an edge over Tyler Technologies, which has a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceNow, Inc. (NOW) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
