Group 1 - ServiceNow is part of the Computer and Technology sector, which includes 619 individual stocks and holds a Zacks Sector Rank of 2 [2] - The Zacks Rank system emphasizes earnings estimates and revisions, with ServiceNow currently holding a Zacks Rank of 2 (Buy) [3] - The Zacks Consensus Estimate for ServiceNow's full-year earnings has increased by 4.2% in the past quarter, indicating improved analyst sentiment [3] Group 2 - ServiceNow has returned 47.4% year-to-date, outperforming the average gain of 28.1% for the Computer and Technology sector [4] - ServiceNow belongs to the Computers - IT Services industry, which has 40 stocks and is currently ranked 39 in the Zacks Industry Rank, with an average gain of 16% this year [5] - Investors should continue to monitor ServiceNow as it is expected to maintain strong performance in the Computer and Technology sector [6]

Core Viewpoint - ServiceNow reported strong third-quarter earnings, with adjusted earnings per share of $3.72, exceeding estimates by 7.51% and showing a year-over-year increase of 27.4% [2] - Revenue for the quarter reached $2.797 billion, surpassing consensus estimates by 2.04% and reflecting a year-over-year growth of 22.2% [2] Financial Performance - Subscription revenues grew by 23% year-over-year, beating management's guidance by 200 basis points [3] - Professional services and other revenues increased by 13.9% year-over-year [4] - The current remaining performance obligations (cRPO) stood at $9.18 billion, up 23.5% year-over-year [4] - Non-GAAP gross margin for the third quarter was 82.6%, an increase of 60 basis points year-over-year [5] - Non-GAAP operating margin expanded to 31.2%, exceeding management's guidance by 150 basis points [6] Client Growth and Market Position - ServiceNow had 2,020 customers with over $1 million in annual contract value (ACV), marking a 14% year-over-year growth [7] - The company secured 15 deals exceeding $5 million in net new ACV during the quarter [7] - Generative AI deals gained traction, with 44 new Now Assist customers spending over $1 million in ACV [8] Strategic Partnerships - ServiceNow is leveraging AI and machine learning to enhance its solutions, with a strong partner base including Visa, Microsoft, and NVIDIA [9][10] - The Zero Copy partnership with Snowflake aims to connect enterprise-wide data for solving critical problems [11] Liquidity and Cash Flow - As of September 30, 2024, ServiceNow had cash and cash equivalents of $5.295 billion [12] - Free cash flow for the quarter was $471 million, up from $359 million in the previous quarter [12] Future Guidance - For 2024, ServiceNow raised its subscription revenue guidance to $10.655-$10.66 billion, indicating a 23% increase from 2023 [13] - Projected subscription revenues for the fourth quarter of 2024 are between $2.875 billion and $2.88 billion, suggesting a year-over-year growth of 21.5-22% [14] - cRPO is expected to grow by 21.5% year-over-year [15] Industry Context - ServiceNow operates within the Zacks Computers - IT Services industry, which has seen mixed performance among peers [21]

ServiceNow (NOW 0.09%) is one of the biggest software companies on the stock market, and it's also been a top performer for much of its history.The company's core Now platform is used for a wide range of IT management tasks, as it acts as a hub for managing, processing, and automating workflows. Among the applications that businesses use it for include inventory and supply chain operations, customer relationship management, and for cybersecurity.That flexibility has helped make the stock a winner, and it se ...

ServiceNow (NOW) has expanded its partnership with Microsoft (MSFT) to enhance front-office business processes using AI. The collaboration has integrated ServiceNow’s AI capabilities with Microsoft 365 Copilot, enabling streamlined workflows and self-service options within Microsoft apps like Teams.Employees can now use Copilot to access ServiceNow’s knowledge base, request services via chat, and raise issues to live agents when required. ServiceNow’s Now Assist further eases tasks by providing smart, conte ...

ServiceNow (NOW) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this maker of software that automates companies' technology operations have returned +13%, compared to the Zacks S&P 500 composite's +3% change. During this period, the Zacks Computers - IT Services industry, which ServiceNow falls in, has gained 4%. The key question now ...

Dublin, Nov. 11, 2024 (GLOBE NEWSWIRE) -- The "Behavior Analytics Market by Solutions (User and Entity Behavior, A/B Testing, Heatmap, Feedback & Voice of Customer), Application (Customer Engagement, Brand Promotion, Workforce Optimization, Threat Detection & Prevention) - Global Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.The behavior analytics market is estimated at USD 5.5 billion in 2024 to USD 13.4 billion by 2029, at a Compound Annual Growth Rate (CAGR) of 19.5% The r ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of th ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Let's take a look at what these Wall Street heavyweights have to say about ServiceNow (NOW) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. ServiceNow currently has an av ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Viewpoint - ServiceNow's stock has risen 33% in 2023, with further potential for growth driven by strong financial performance, leadership in enterprise generative AI, and significant productivity gains for early adopters of its AI solutions [1][2]. Financial Performance - Q3 2024 revenue reached $2.80 billion, a 22.3% increase, exceeding Street consensus by $60 million [2] - Adjusted earnings per share for Q3 2024 were $3.72, up 27% and 80 cents above estimates [2] - Subscription revenue for Q3 2024 was $2.72 billion, up 22.5%, also exceeding consensus by around $60 million [2] - Current remaining performance obligations stood at $9.36 billion, representing 26% growth and $250 million above projections [2] - Q4 2024 subscription revenue forecast is between $2.875 billion and $2.880 billion, indicating a 22% increase year-over-year [2] Generative AI Leadership - ServiceNow's Now Assist AI is the fastest-growing product in the company's history, contributing to cross-enterprise expansion [2][4] - The company is positioned as a leader in enterprise generative AI, with partnerships with Nvidia enhancing its capabilities [4][6] - ServiceNow's generative AI solutions are designed to improve productivity significantly, with claims of increasing human productivity by up to three or four days a week [5] Productivity Gains for Customers - Customers, such as BT, have reported a 55% reduction in call resolution time due to ServiceNow's AI solutions [7] - The software reduces the need for workers to switch between multiple applications, streamlining workflows [6] - There is strong customer interest in generative AI products, with 85% of Fortune 500 companies as customers seeking rapid value realization [7][8] Market Outlook - Analysts have a positive outlook on ServiceNow's stock, with an average price target of $985, indicating potential upside [8] - The company's consistent ability to beat guidance and raise forecasts is noted as a unique strength in the market [9]