Capital One Financial Weighs in on ServiceNow Q3 Earnings

ServiceNow, Inc. (NYSE:NOW - Free Report) - Equities research analysts at Capital One Financial raised their Q3 2025 earnings per share estimates for ServiceNow in a note issued to investors on Wednesday, April 23rd. Capital One Financial analyst C. Murphy now expects that the information technology services provider will post earnings per share of $1.87 for the quarter, up from their previous estimate of $1.82. The consensus estimate for ServiceNow's current full-year earnings is $8.93 per share.

ServiceNow (NYSE:NOW - Get Free Report) last announced its earnings results on Wednesday, April 23rd. The information technology services provider reported $4.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.78 by $0.26. ServiceNow had a net margin of 12.97% and a return on equity of 17.11%. The business had revenue of $3.09 billion during the quarter, compared to analyst estimates of $3.09 billion. During the same period in the previous year, the business posted $3.41 earnings per share. ServiceNow's revenue for the quarter was up 18.6% on a year-over-year basis.

A number of other equities research analysts have also recently issued reports on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $1,048.00 price objective on shares of ServiceNow in a research note on Thursday, April 24th. Truist Financial decreased their price target on ServiceNow from $1,100.00 to $950.00 and set a "hold" rating on the stock in a research note on Monday, March 31st. StockNews.com lowered shares of ServiceNow from a "buy" rating to a "hold" rating in a report on Tuesday, February 11th. Guggenheim raised their price target on shares of ServiceNow from $716.00 to $724.00 and gave the stock a "sell" rating in a report on Thursday, April 24th. Finally, Redburn Atlantic assumed coverage on shares of ServiceNow in a report on Wednesday, February 19th. They set a "buy" rating for the company. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-nine have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,032.94.

ServiceNow Price Performance

Shares of NOW traded up $5.38 during midday trading on Monday, reaching $942.79. The stock had a trading volume of 1,245,267 shares, compared to its average volume of 1,508,502. The company has a market capitalization of $195.16 billion, a price-to-earnings ratio of 138.04, a price-to-earnings-growth ratio of 4.51 and a beta of 1.08. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.15. ServiceNow has a 12-month low of $637.99 and a 12-month high of $1,198.09. The company's 50-day moving average is $837.70 and its 200 day moving average is $967.86.

Institutional Trading of ServiceNow

Several hedge funds have recently bought and sold shares of NOW. Quarry LP bought a new position in shares of ServiceNow during the 4th quarter valued at approximately $27,000. Atala Financial Inc purchased a new stake in ServiceNow during the 4th quarter valued at $28,000. LFA Lugano Financial Advisors SA purchased a new position in ServiceNow during the fourth quarter worth $32,000. Noble Wealth Management PBC bought a new position in ServiceNow during the fourth quarter valued at $34,000. Finally, FPC Investment Advisory Inc. boosted its stake in shares of ServiceNow by 725.0% during the 4th quarter. FPC Investment Advisory Inc. now owns 33 shares of the information technology services provider's stock worth $34,000 after purchasing an additional 29 shares during the period. Hedge funds and other institutional investors own 87.18% of the company's stock.

Insider Transactions at ServiceNow

In related news, Director Larry Quinlan sold 415 shares of the business's stock in a transaction that occurred on Tuesday, February 4th. The stock was sold at an average price of $1,007.41, for a total value of $418,075.15. Following the transaction, the director now directly owns 1,737 shares of the company's stock, valued at approximately $1,749,871.17. The trade was a 19.28 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Vice Chairman Nicholas Tzitzon sold 2,945 shares of ServiceNow stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $923.72, for a total transaction of $2,720,355.40. Following the sale, the insider now owns 3,649 shares in the company, valued at approximately $3,370,654.28. The trade was a 44.66 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 21,618 shares of company stock valued at $21,132,878 over the last quarter. 0.38% of the stock is currently owned by company insiders.

ServiceNow announced that its Board of Directors has authorized a stock repurchase program on Wednesday, January 29th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the information technology services provider to repurchase up to 1.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board believes its stock is undervalued.

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.