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The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $2.13 billion, up 21.52% from the figure reported in the year-ago quarter.
The consensus mark for second-quarter earnings is pegged at $2.05 per share over the past 30 days, indicating growth of 26.54% from the figure reported in the year-ago quarter.
ServiceNow’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.36%.
Let’s see how things are shaping up for ServiceNow prior to this announcement.
Factors at Play
ServiceNow’s second-quarter 2023 results are expected to benefit from expanding clientele. It has been gaining from the rising adoption of its workflows by enterprises undergoing digital transformation.
The availability of new solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — is helping the company win new customers. It had 1,682 total customers, with more than $1 million in annual contract value, at the end of the first quarter.
For second-quarter 2023, subscription revenues are projected between $2.04 billion and $2.045 billion, suggesting an improvement in the range of 23-23.5% year over year on a GAAP basis. At constant currency, subscription revenues are expected to grow in the 23.5-24% range.
Our model estimate for second-quarter subscription revenues is pegged at $2.042 billion, suggesting 23.1% growth year over year.
ServiceNow’s expanding global presence, solid partner base and strategic buyouts are expected to have bolstered its top-line growth in the second quarter of 2023.
Key Q2 Developments
During the to-be-reported quarter, ServiceNow and Cognizant announced a partnership to help clients adopt AI-driven automation across industries. The alliance aims to build a $1-billion combined business for both companies.
ServiceNow also announced its partnership with NVIDIA to develop enterprise-grade generative AI capabilities that will transform business processes with more intelligent workflow automation.
Moreover, ServiceNow announced its generative AI solution, Now Assist for Virtual Agent. The company expanded its portfolio with the launch of ServiceNow Generative AI Controller and Now Assist for Search. These solutions apply the power of generative AI to deliver faster and more intelligent workflow automation.
On May 12, ServiceNow entered into an agreement to acquire the AI-powered platform, G2K, to transform retail and other industries. It plans to add G2K’s smart IoT technology to the Now Platform.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ServiceNow has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
ServiceNow (NOW) to Report Q2 Earnings: What's in the Cards?
ServiceNow (NOW - Free Report) is scheduled to release its second-quarter 2023 results on Jul 26.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $2.13 billion, up 21.52% from the figure reported in the year-ago quarter.
The consensus mark for second-quarter earnings is pegged at $2.05 per share over the past 30 days, indicating growth of 26.54% from the figure reported in the year-ago quarter.
ServiceNow’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.36%.
ServiceNow, Inc. Price and EPS Surprise
ServiceNow, Inc. price-eps-surprise | ServiceNow, Inc. Quote
Let’s see how things are shaping up for ServiceNow prior to this announcement.
Factors at Play
ServiceNow’s second-quarter 2023 results are expected to benefit from expanding clientele. It has been gaining from the rising adoption of its workflows by enterprises undergoing digital transformation.
The availability of new solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — is helping the company win new customers. It had 1,682 total customers, with more than $1 million in annual contract value, at the end of the first quarter.
For second-quarter 2023, subscription revenues are projected between $2.04 billion and $2.045 billion, suggesting an improvement in the range of 23-23.5% year over year on a GAAP basis. At constant currency, subscription revenues are expected to grow in the 23.5-24% range.
Our model estimate for second-quarter subscription revenues is pegged at $2.042 billion, suggesting 23.1% growth year over year.
ServiceNow’s expanding global presence, solid partner base and strategic buyouts are expected to have bolstered its top-line growth in the second quarter of 2023.
Key Q2 Developments
During the to-be-reported quarter, ServiceNow and Cognizant announced a partnership to help clients adopt AI-driven automation across industries. The alliance aims to build a $1-billion combined business for both companies.
ServiceNow also announced its partnership with NVIDIA to develop enterprise-grade generative AI capabilities that will transform business processes with more intelligent workflow automation.
Moreover, ServiceNow announced its generative AI solution, Now Assist for Virtual Agent. The company expanded its portfolio with the launch of ServiceNow Generative AI Controller and Now Assist for Search. These solutions apply the power of generative AI to deliver faster and more intelligent workflow automation.
On May 12, ServiceNow entered into an agreement to acquire the AI-powered platform, G2K, to transform retail and other industries. It plans to add G2K’s smart IoT technology to the Now Platform.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ServiceNow has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Tyler Technologies (TYL - Free Report) has an Earnings ESP of +0.54% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tyler shares have gained 25.3% year to date. TYL is set to report its second-quarter 2023 results on Jul 27.
Cadence Design Systems (CDNS - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #1.
Cadence Design shares have gained 48.6% year to date. CDNS is set to report its second-quarter 2023 results on Jul 24.
Meta Platforms (META - Free Report) has an Earnings ESP of +5.89% and has a Zacks Rank of 2, at present.
Meta shares have gained 151.3% year to date. META is set to report its second-quarter 2023 results on Jul 26.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.