William Blair Forecasts ServiceNow's Q3 Earnings (NYSE:NOW)

ServiceNow, Inc. (NYSE:NOW - Free Report) - William Blair decreased their Q3 2025 EPS estimates for shares of ServiceNow in a research note issued to investors on Thursday, April 24th. William Blair analyst A. Bhatia now forecasts that the information technology services provider will earn $2.38 per share for the quarter, down from their previous estimate of $2.45. William Blair has a "Outperform" rating on the stock. The consensus estimate for ServiceNow's current full-year earnings is $8.93 per share.

ServiceNow (NYSE:NOW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 23rd. The information technology services provider reported $4.04 EPS for the quarter, topping 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 company had revenue of $3.09 billion for the quarter, compared to analyst estimates of $3.09 billion. During the same quarter in the prior year, the business posted $3.41 EPS. ServiceNow's quarterly revenue was up 18.6% on a year-over-year basis.

Several other brokerages have also issued reports on NOW. UBS Group reiterated a "buy" rating and issued a $1,025.00 price objective (up from $900.00) on shares of ServiceNow in a research note on Thursday, April 24th. JPMorgan Chase & Co. cut their price target on ServiceNow from $1,200.00 to $970.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 22nd. BMO Capital Markets cut their price target on ServiceNow from $990.00 to $950.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 22nd. Citigroup lowered their price objective on shares of ServiceNow from $1,426.00 to $1,082.00 and set a "buy" rating for the company in a research report on Tuesday, April 22nd. Finally, StockNews.com downgraded ServiceNow from a "buy" rating to a "hold" rating in a report on Tuesday, February 11th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and thirty have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,041.00.

ServiceNow Stock Performance

NOW traded up $14.93 on Monday, hitting $969.94. 919,674 shares of the stock traded hands, compared to its average volume of 1,935,569. ServiceNow has a 52 week low of $637.99 and a 52 week high of $1,198.09. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $200.78 billion, a PE ratio of 142.07, a P/E/G ratio of 4.51 and a beta of 1.08. The business has a fifty day moving average price of $837.53 and a two-hundred day moving average price of $967.60.

Institutional Investors Weigh In On ServiceNow

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NOW. Quarry LP bought a new position in shares of ServiceNow during the fourth quarter valued at $27,000. Atala Financial Inc bought a new position in shares of ServiceNow during the fourth quarter valued at $28,000. WASHINGTON TRUST Co lifted its holdings in ServiceNow by 620.0% in the first quarter. WASHINGTON TRUST Co now owns 36 shares of the information technology services provider's stock valued at $29,000 after acquiring an additional 31 shares during the period. LFA Lugano Financial Advisors SA bought a new position in ServiceNow in the fourth quarter valued at about $32,000. Finally, FPC Investment Advisory Inc. lifted its holdings in ServiceNow by 725.0% in the fourth quarter. FPC Investment Advisory Inc. now owns 33 shares of the information technology services provider's stock valued at $34,000 after acquiring an additional 29 shares during the period. 87.18% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, Director Deborah Black sold 598 shares of the company's stock in a transaction on Friday, April 25th. The shares were sold at an average price of $940.23, for a total value of $562,257.54. Following the transaction, the director now owns 428 shares of the company's stock, valued at approximately $402,418.44. This represents a 58.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Gina Mastantuono sold 4,442 shares of the stock in a transaction on Friday, February 21st. The shares were sold at an average price of $964.70, for a total value of $4,285,197.40. Following the completion of the transaction, the chief financial officer now directly owns 11,126 shares in the company, valued at approximately $10,733,252.20. This represents a 28.53 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 21,618 shares of company stock worth $21,132,878 over the last 90 days. Corporate insiders own 0.38% of the company's stock.

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

About ServiceNow

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.