ServiceNow Stock Rises on Earnings Beat and Raised Guidance
Shares of ServiceNow (NYSE: NOW) surged as much as 13.8% this week following the company's Q2 earnings report, where it exceeded subscription revenue guidance by growing 23% year-over-year to $3.88 billion in constant currency terms. The software provider also raised its full-year subscription revenue forecast to $15.76 billion and outlined a long-term goal of reaching $30 billion by 2030, with significant contributions expected from AI services integrated into existing workflows. Despite the recent rebound, ServiceNow's stock remains down 41% over the past year but is currently trading at one of its lowest price-to-sales ratios in years. Analysts suggest that if revenue growth continues through 2030 and profit margins remain strong, the stock could be a buy following this week’s rally. However, The Motley Fool's Stock Advisor team did not include ServiceNow among their top ten recommended stocks for investment at present.
Tickers: $NOW
Topics: ai_services software stock_performance