What You Need To Know Ahead of ServiceNow’s Earnings Release

Founded in 2004, Santa Clara, California-based ServiceNow, Inc. (NOW) provides a cloud-based solution for digital workflows in North America and internationally. The company has a market capitalization of $153.1 billion and is expected to release its Q4 2025 earnings soon.

Ahead of the event, analysts expect ServiceNow to report a profit of $0.48 per share on a diluted basis, up 23.1% from $0.39 per share in the year-ago quarter. The company beat the consensus estimates in each of the last four quarters.

For the full year, analysts expect NOW’s EPS to be $1.96, up 36.1% from $1.44 in fiscal 2025. Its EPS is expected to rise 20.9% year over year (YoY) to $2.37 in fiscal 2026. 

Shares of NOW have declined 30.9% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 16.2% rise and the State Street Technology Select Sector SPDR ETF’s (XLK) 22.9% return during the same time frame.

NOW stock’s recent slide in December was not about broken fundamentals – it was about timing, scale, and nerves. The stock stumbled as investors digested news of its $7.75 billion cash-and-debt deal for cybersecurity firm Armis, the largest acquisition in the company’s history and a clear step outside its IT service management comfort zone. While Armis brings fast-growing ARR and strong security credentials, the price tag has reignited concerns over balance sheet risk and strategic drift.

At the same time, KeyBanc Capital Markets downgraded the stock to an “Underweight” from a “Sector Weight” with a price target of $775, and this amplified fears that AI automation could shrink software seat counts, pressuring long-term demand. Layer on a broader rotation out of high-multiple tech and AI names into defensive stocks, and ServiceNow briefly found itself on the wrong side of market sentiment, caught between ambition and investor caution.

Analysts’ consensus opinion on NOW stock is highly bullish, with a “Strong Buy” rating overall. Out of 43 analysts covering the stock, 33 advise a “Strong Buy” rating, three give a “Moderate Buy,” six recommend a “Hold,” and one advocates a “Strong Sell.” Its mean price target of $225.02 represents 51.2% upside potential to current price levels.