From Nasdaq: 2025-02-01 07:45:00

ServiceNow Inc. (NYSE: NOW) reported fourth-quarter earnings with revenue of $2.96 billion, up 21% YoY, and EPS of $3.67. Subscription revenue increased by 23% YoY. However, guidance of 18%-19% growth for the coming year led to a stock decline.

ServiceNow’s business model changes include new AI Agents in their SKUs and optimizing go-to-market approaches.

The company’s incorporation of AI into their software solutions has been driving revenue growth. Concerns arise over continued hiring amidst competitors freezing hiring.

ServiceNow stock is at support levels but may face resistance at $1,123. Analysts believe the stock was priced at a premium, with potential downside to $950.

Analysts remain bullish on ServiceNow with a consensus price target of $1,129.93. JPMorgan Chase raised its price target to $1,250 post-earnings. The long-term outlook for the company’s AI business is positive.

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Read more at Nasdaq:: ServiceNow Stock Slips, But AI Expansion Signals Long-Term Gains