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ServiceNow (NOW) Stock Declines While Market Improves: Some Information for Investors
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In the latest close session, ServiceNow (NOW - Free Report) was down 1.96% at $102.00. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 8.62% lagged the Computer and Technology sector's loss of 3.85% and the S&P 500's loss of 4.28%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on April 22, 2026. The company's upcoming EPS is projected at $0.95, signifying a 17.28% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 21.39% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.14 per share and a revenue of $15.98 billion, indicating changes of +17.95% and +20.32%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, ServiceNow boasts a Zacks Rank of #2 (Buy).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 25.12. This expresses a premium compared to the average Forward P/E of 12.9 of its industry.
It's also important to note that NOW currently trades at a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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ServiceNow (NOW) Stock Declines While Market Improves: Some Information for Investors
In the latest close session, ServiceNow (NOW - Free Report) was down 1.96% at $102.00. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 8.62% lagged the Computer and Technology sector's loss of 3.85% and the S&P 500's loss of 4.28%.
The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on April 22, 2026. The company's upcoming EPS is projected at $0.95, signifying a 17.28% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.75 billion, up 21.39% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.14 per share and a revenue of $15.98 billion, indicating changes of +17.95% and +20.32%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, ServiceNow boasts a Zacks Rank of #2 (Buy).
In terms of valuation, ServiceNow is currently trading at a Forward P/E ratio of 25.12. This expresses a premium compared to the average Forward P/E of 12.9 of its industry.
It's also important to note that NOW currently trades at a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.