ServiceNow (NOW) Increases Despite Market Slip: Here's What You Need to Know

In the latest close session, ServiceNow (NOW) was up +1.36% at $139.75. The stock outpaced the S&P 500's daily loss of 0.47%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 1.25%. The maker of software that automates companies' technology operations's shares have seen an increase of 5.16% over the last month, not keeping up with the Computer and Technology sector's gain of 6.08% and outstripping the S&P 500's gain of 1.15%.The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on October 28, 2026. On that day, ServiceNow is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 7.29%. In the meantime, our current consensus estimate forecasts the revenue to be $4.09 billion, indicating a 19.95% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $16.17 billion. These totals would mark changes of +15.67% and +21.79%, respectively, from last year. It is also important to note the recent changes to analyst estimates for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, ServiceNow holds a Zacks Rank of #3 (Hold). In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 33.95. This represents a premium compared to its industry average Forward P/E of 13.25. It's also important to note that NOW currently trades at a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.27 at yesterday's closing price. The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Beyond Nvidia: AI's Second Wave Is Here The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research