ServiceNow (NOW) is set to announce its third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for Q3 revenues is $3.35 billion, up 19.8% YoY. Earnings are estimated at $4.21 per share, reflecting 13.2% YoY growth.

ServiceNow has a history of beating earnings estimates, with an average surprise of 8.04% in the last four quarters. Subscription revenues are expected to grow by 20%-20.5% YoY in Q3.

Despite a challenging macroeconomic environment, ServiceNow’s stock has dropped 12.2% YTD. However, it has outperformed the Computers – IT Services industry, showing resilience.

ServiceNow’s valuation may be stretched at the moment, but the company benefits from a strong portfolio and rich partner base. Leveraging AI and machine learning technologies, ServiceNow is poised for growth.

Looking ahead, ServiceNow’s subscription revenues are expected to be driven by its strong portfolio and partnerships, although macroeconomic headwinds remain a concern. ServiceNow currently has a Zacks Rank #3 (Hold).

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Read more at Nasdaq: ServiceNow Set to Report Q3 Earnings: Buy, Sell or Hold the Stock?