Key Insights:
- ServiceNow (NOW, Financial) outperformed Q1 2025 expectations with a Non-GAAP EPS of $4.04.
- Revenue saw a significant increase, reaching $3.09 billion, fueled by a 19% growth in subscription revenue.
- Analysts predict a potential upside of 25.96% from current stock prices.
ServiceNow Inc. (NOW) has demonstrated a robust start in Q1 2025, capturing the attention of investors by not only meeting but exceeding expectations with a Non-GAAP EPS of $4.04. This figure surpassed analysts' predictions by a notable $0.21. Simultaneously, the company's revenue climbed to an impressive $3.09 billion, reflecting an 18.8% increase compared to the same period last year. Subscription revenue was a major contributor, rising by 19% to achieve a substantial total of $3.005 billion.
Wall Street Analysts' Outlook
The insights from 40 leading analysts offer a compelling outlook for ServiceNow Inc. (NOW, Financial). The average price target set for the company's stock over the next year stands at $1,023.69. This projection ranges from a high estimate of $1,300.00 to a low estimate of $716.00, indicating a promising potential upside of 25.96% compared to its current price of $812.70. Investors craving more detailed projections should visit the ServiceNow Inc (NOW) Forecast page.
Further reinforcing this positive sentiment, 47 brokerage firms collectively endorse ServiceNow Inc (NOW, Financial) with an average recommendation rating of 1.9. This places the stock firmly in the "Outperform" category, positioning it favorably within a rating scale that stretches from 1 (Strong Buy) to 5 (Sell).
According to GuruFocus's meticulous valuation metrics, the estimated GF Value of ServiceNow Inc (NOW, Financial) for the next year is pegged at $1,056.38. This estimation suggests a potential upside of 29.98% from its present trading price of $812.70. The GF Value metric considers historical trading multiples alongside past and future business performance forecasts to ascertain what the stock's fair value should be. For additional insights, the ServiceNow Inc (NOW) Summary page offers a comprehensive analysis.
