Earnings Preview: What to Expect From ServiceNow's Report

Valued at a market cap of $218.4 billion, ServiceNow, Inc. (NOW) provides cloud-based workflow automation solutions for digital transformation. The Santa Clara, California-based company is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Jan. 22.

Ahead of this event, analysts expect NOW to report a profit of $1.77 per share, up 58% from $1.12 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. Its EPS od $2.17 beat the consensus estimate by 19.2% in the recent quarter. 

For fiscal 2024, analysts expect NOW to report EPS of $7.07, up 137.3% from $2.98 in fiscal 2023.

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NOW stock has climbed 53.4% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 23.7% rise and the Technology Select Sector SPDR Fund's (XLK) 23.8% gain over the same period.

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ServiceNow's market momentum over the past year has been fueled by strong demand for its AI-driven workflow solutions, robust financial performance, strategic acquisitions, and positive analyst sentiment.

However, on Dec. 13, NOW fell over 2% after KeyBanc Capital Markets downgraded the stock from "Overweight" to "Sector-Weight."

Analysts' consensus rating on ServiceNow stock is highly bullish, with a "Strong Buy" rating overall. Out of 36 analysts covering the stock, opinions include 29 "Strong Buys," three "Moderate Buys," three "Holds," and one "Strong Sell." 

NOW’s mean price target of $1,079.77 indicates a potential upside of 2.4% from the current market prices.