ServiceNow is gearing up to unveil its most recent financial results on January 28, 2026. This announcement is highly anticipated by investors eager to assess the company's financial health and future prospects. The market is closely watching for key metrics, particularly the earnings per share (EPS), which analysts have estimated to be around $0.72. Exceeding these expectations and providing an optimistic forecast for the upcoming quarter could significantly influence stock performance.
Understanding the impact of guidance is crucial for new investors. A strong outlook from the company often acts as a catalyst for stock price movements. Historically, ServiceNow has demonstrated its ability to surpass EPS estimates, leading to positive shifts in its share price. For instance, in the previous quarter, the company exceeded its EPS by $0.27, which was followed by a 2.52% increase in share value the very next day. This pattern highlights the sensitivity of the stock to earnings surprises and forward-looking statements.
Examining past performance offers valuable context. In Q3 2025, ServiceNow reported an actual EPS of $0.964 against an estimate of $0.698, resulting in a 3.00% price change. Similarly, Q2 2025 saw an actual EPS of $0.818 versus an estimate of $0.564, leading to a 4.00% price increase. The most significant jump occurred in Q1 2025, where an actual EPS of $0.808 beat the $0.768 estimate, driving a remarkable 15.00% price surge. However, Q4 2024 presented a different scenario, with a minor beat (actual $0.734 vs. estimate $0.732) but an 11.00% price decline, indicating that market reactions can be complex and influenced by various factors beyond just beating estimates.
As of January 26, ServiceNow's shares were trading at $136.34. Over the past 52 weeks, the stock has experienced a 40.39% decline, which might be a source of concern for long-term shareholders as they approach the upcoming earnings release. Despite this, analyst sentiment remains largely positive. Out of 25 ratings, the consensus is a 'Buy,' with an average one-year price target of $591.8. This suggests a substantial potential upside of 344.59%, reflecting strong confidence in the company's future growth.
In a comparative analysis with its peers—Palo Alto Networks, CrowdStrike Holdings, and Fortinet—ServiceNow holds its own. While Palo Alto Networks has an 'Outperform' consensus with a 76.43% potential upside, and CrowdStrike Holdings boasts a 'Buy' rating with an impressive 333.69% upside, Fortinet is rated 'Neutral' with a potential 36.59% downside. ServiceNow leads its peers in revenue growth, with a robust 21.81%, and sits in the middle for gross profit. However, its return on equity (ROE) is lower than its competitors, indicating room for improvement in capital efficiency.
ServiceNow Inc. is a prominent provider of software solutions that streamline and automate business processes through a Software-as-a-Service (SaaS) model. The company's core focus has traditionally been on IT functions for enterprise clients. Originating with IT service management, ServiceNow has expanded its workflow automation capabilities to encompass customer service, HR service delivery, and security operations. Additionally, it offers an application development platform as a service. Financially, ServiceNow has demonstrated positive revenue growth of approximately 21.81% as of September 30, 2025, although this is below the average for the Information Technology sector. The company exhibits strong profitability with an impressive net margin of 14.73% and an exceptional return on assets (ROA) of 2.29%. Its debt-to-equity ratio of 0.21 also indicates a sound financial structure. However, its market capitalization is below industry benchmarks, and its ROE of 4.52% suggests potential areas for enhancing shareholder returns.