From Nasdaq: 2025-04-14 15:00:00

ServiceNow (NOW) shares have dropped 25.9% year to date, performing worse than the Computer & Technology sector and Computers – IT Services industry. The company faces challenges due to worsening macroeconomic conditions following U.S. tariffs on trading partners like China and Mexico. The federal business is expected to suffer as well.

ServiceNow has released the Yokohama platform with new AI agents in CRM, HR, and IT domains, enhancing productivity and workflows. Collaborations with Google Cloud, NVIDIA, and DXC Technology have strengthened the company’s position. Acquisitions like Logik.ai and Quality 360 aim to boost ServiceNow’s capabilities and offerings.

For the first quarter of 2025, ServiceNow projects subscription revenues between $2.995 billion and $3 billion, with an 18.5-19% year-over-year growth rate. Unfavorable forex conditions are expected to impact revenues by $40 million. Full-year subscription revenues for 2025 are estimated to be between $12.635-$12.675 billion, showing a rise from 2024.

The Zacks Consensus Estimate for 2025 earnings for ServiceNow is at $16.23 per share, indicating a slight increase over 2024. However, the company’s earnings estimate revision shows a downward trend. ServiceNow’s stock is considered overvalued with a Value Score of F and a higher Price/Sales ratio compared to the sector.

ServiceNow’s stock is currently displaying a bearish trend, trading below both the 200-day and 50-day moving averages. While the company’s strong GenAI portfolio and partnerships are positive, challenges like unfavorable forex and a stretched valuation raise concerns. With a Zacks Rank #4 (Sell), investors may want to stay away from ServiceNow stock for now.



Read more at Nasdaq: ServiceNow Dips 26% Year to Date: Hold or Fold the NOW Stock?