Cantor Fitzgerald Forecasts Stronger Earnings for ServiceNow

Key Points

• Cantor Fitzgerald has raised its FY2025 EPS estimate for ServiceNow from $9.18 to $9.37, and set a price target of $1,200.00 for the stock, indicating an Overweight rating.
• ServiceNow reported quarterly earnings of $4.09 EPS, exceeding analysts' expectations of $3.57, and revenue of $3.22 billion, outperforming the consensus estimate.
• Multiple analysts have raised their price targets on ServiceNow, with Citigroup increasing its target to $1,234.00 and Mizuho to $1,100.00, reflecting strong market confidence in the company's performance.

ServiceNow, Inc. (NYSE:NOW - Free Report) - Research analysts at Cantor Fitzgerald raised their FY2025 EPS estimates for shares of ServiceNow in a research report issued to clients and investors on Thursday, July 24th. Cantor Fitzgerald analyst T. Blakey now expects that the information technology services provider will earn $9.37 per share for the year, up from their previous estimate of $9.18. Cantor Fitzgerald has a "Overweight" rating and a $1,200.00 price target on the stock. The consensus estimate for ServiceNow's current full-year earnings is $8.93 per share. Cantor Fitzgerald also issued estimates for ServiceNow's FY2026 earnings at $11.64 EPS.

ServiceNow (NYSE:NOW - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The information technology services provider reported $4.09 EPS for the quarter, topping analysts' consensus estimates of $3.57 by $0.52. The business had revenue of $3.22 billion for the quarter, compared to the consensus estimate of $3.12 billion. ServiceNow had a net margin of 13.78% and a return on equity of 18.62%. The company's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.13 EPS.

Other equities analysts also recently issued reports about the stock. Citigroup increased their price objective on shares of ServiceNow from $1,160.00 to $1,234.00 and gave the company a "buy" rating in a research note on Thursday. Mizuho increased their price objective on shares of ServiceNow from $1,050.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Thursday, June 12th. Oppenheimer reissued an "outperform" rating and issued a $1,150.00 price target (up from $1,100.00) on shares of ServiceNow in a research note on Thursday. Wells Fargo & Company lifted their target price on shares of ServiceNow from $1,150.00 to $1,225.00 and gave the stock an "overweight" rating in a research note on Thursday. Finally, Stifel Nicolaus lifted their price target on shares of ServiceNow from $975.00 to $1,050.00 and gave the company a "buy" rating in a research report on Tuesday, May 6th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, thirty have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, ServiceNow presently has an average rating of "Moderate Buy" and a consensus target price of $1,107.94.

ServiceNow Price Performance

Shares of NOW stock opened at $998.12 on Friday. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.12 and a quick ratio of 1.12. The company's 50-day simple moving average is $1,001.77 and its two-hundred day simple moving average is $953.76. ServiceNow has a one year low of $678.66 and a one year high of $1,198.09. The company has a market capitalization of $206.59 billion, a P/E ratio of 125.71, a P/E/G ratio of 4.39 and a beta of 0.94.

Insider Buying and Selling at ServiceNow

In related news, Vice Chairman Nicholas Tzitzon sold 1,171 shares of the stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $1,020.00, for a total value of $1,194,420.00. Following the sale, the insider directly owned 3,000 shares of the company's stock, valued at approximately $3,060,000. This represents a 28.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Anita M. Sands sold 428 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $1,013.61, for a total transaction of $433,825.08. Following the completion of the sale, the director directly owned 10,891 shares in the company, valued at approximately $11,039,226.51. The trade was a 3.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 6,003 shares of company stock worth $6,015,106. Company insiders own 0.38% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Apollon Wealth Management LLC lifted its holdings in shares of ServiceNow by 10.2% during the 2nd quarter. Apollon Wealth Management LLC now owns 8,150 shares of the information technology services provider's stock worth $8,379,000 after acquiring an additional 751 shares during the period. Fifth Third Wealth Advisors LLC lifted its holdings in shares of ServiceNow by 21.8% during the 2nd quarter. Fifth Third Wealth Advisors LLC now owns 2,805 shares of the information technology services provider's stock worth $2,884,000 after acquiring an additional 502 shares during the period. Richardson Financial Services Inc. lifted its holdings in shares of ServiceNow by 50.0% during the 2nd quarter. Richardson Financial Services Inc. now owns 33 shares of the information technology services provider's stock worth $33,000 after acquiring an additional 11 shares during the period. IRON Financial LLC lifted its holdings in shares of ServiceNow by 1.8% during the 2nd quarter. IRON Financial LLC now owns 962 shares of the information technology services provider's stock worth $989,000 after acquiring an additional 17 shares during the period. Finally, West Bancorporation Inc. lifted its holdings in shares of ServiceNow by 18.8% during the 2nd quarter. West Bancorporation Inc. now owns 310 shares of the information technology services provider's stock worth $319,000 after acquiring an additional 49 shares during the period. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

ServiceNow Company Profile

ServiceNow, Inc provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools.

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