Overview
AI platform's Q4 revenue grew 20.5%, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company authorized additional $5 bln for share repurchase program; planned imminent $2 bln accelerated buyback
Outlook
ServiceNow expects Q1 2026 subscription revenue of $3.650 bln to $3.655 bln
Company forecasts full-year 2026 subscription revenue of $15.530 bln to $15.570 bln
ServiceNow sees Q1 2026 cRPO growth at 22.5%
Result Drivers
SUBSCRIPTION REVENUE GROWTH - ServiceNow reported a 21% year-over-year increase in subscription revenues, driven by growth in licensed users, workflows, and transactions on its platform
AI PRODUCT PERFORMANCE - Emerging AI products like Now Assist and Workflow Data Fabric outperformed, contributing to strong Q4 results
STRATEGIC ACQUISITIONS - Recent acquisitions are expected to create new market opportunities and enhance ServiceNow's AI capabilities
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $3.57 bln | $3.53 bln (34 Analysts) |
Q4 Adjusted EPS | Beat | $0.92 | $0.88 (34 Analysts) |
Q4 EPS | $0.38 | ||
Q4 Net Income | $401 mln | ||
Q4 Subscription Revenue | $3.47 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 43 "strong buy" or "buy", 3 "hold" and 1 "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 $210.00, about 59.3% above its January 27 closing price of $131.80
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 48 three months ago
Press Release: ID:nBw3Xb3K1a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)