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ServiceNow (NOW) Reports Q1 Earnings: What Key Metrics Have to Say
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For the quarter ended March 2026, ServiceNow (NOW - Free Report) reported revenue of $3.77 billion, up 22.1% over the same period last year. EPS came in at $0.97, compared to $0.81 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.75 billion, representing a surprise of +0.57%. The company delivered an EPS surprise of +1.84%, with the consensus EPS estimate being $0.95.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Current Remaining Performance Obligations(cRPO) - GAAP: $12.64 billion versus $12.63 billion estimated by three analysts on average.
Remaining Performance Obligations (RPO) - GAAP: $27.70 billion compared to the $27.53 billion average estimate based on three analysts.
cRPO (Current Remaining Performance Obligations) - Non-GAAP: $12.45 billion versus $12.38 billion estimated by two analysts on average.
Revenues- Subscription: $3.67 billion compared to the $3.65 billion average estimate based on eight analysts. The reported number represents a change of +22.2% year over year.
Revenues- Professional services and other: $99 million compared to the $90.54 million average estimate based on seven analysts. The reported number represents a change of +19.3% year over year.
Gross Profit (Non-GAAP)- Professional services and other: $-9 million compared to the $8.42 million average estimate based on six analysts.
Gross Profit (Non-GAAP)- Subscription: $3 billion versus the six-analyst average estimate of $3 billion.
Shares of ServiceNow have returned -4.3% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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ServiceNow (NOW) Reports Q1 Earnings: What Key Metrics Have to Say
For the quarter ended March 2026, ServiceNow (NOW - Free Report) reported revenue of $3.77 billion, up 22.1% over the same period last year. EPS came in at $0.97, compared to $0.81 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.75 billion, representing a surprise of +0.57%. The company delivered an EPS surprise of +1.84%, with the consensus EPS estimate being $0.95.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for ServiceNow here>>>
Shares of ServiceNow have returned -4.3% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.