ServiceNow beats Q2 revenue estimates on AI demand, raises FY outlook
NOW•Q2 results beat estimates
ServiceNow said its second-quarter revenue rose 24% year over year, beating analyst expectations.
Adjusted earnings per share for Q2 also beat analyst expectations.
Key reported figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $3.99 bln | $3.93 bln (36 Analysts) |
| Q2 Adjusted EPS | Beat | $0.90 | $0.85 (37 Analysts) |
| Q2 EPS | $0.29 | ||
| Q2 Net Income | $298 mln | ||
| Q2 Subscription Revenue | $3.88 bln |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell".
The average consensus recommendation for the software peer group is "buy".
Wall Street's median 12-month price target for ServiceNow Inc is $140.00, about 37.2% above its July 21 closing price of $102.06.
The stock recently traded at 22 times the next 12-month earnings versus a P/E of 24 three months ago.
AI demand and large deals drove growth
The company said strong demand for ServiceNow AI and agentic deployments contributed to topline growth.
It also reported 123 transactions over $1 million in net new annual contract value, up nearly 40% year over year.
