NOW
The market’s leaning bullish
ServiceNow shares are up ahead of its first-quarter earnings, and that usually means one thing: Wall Street thinks the company is walking into the room with a decent answer sheet.
Analysts are looking for 80 cents per share on $3.75 billion in revenue, and the setup is being shaped by last quarter’s strong results. When a company beats, raises, and keeps talking about AI like it’s the turbo button on a spaceship, investors tend to show up to the next print with expectations slightly above the ceiling.
Why this print matters
The real question isn’t just whether ServiceNow beats. It’s whether the company can keep the momentum going in its AI-powered business story. Last quarter, subscription revenue rose 21% and total revenue climbed 20.5%, while current remaining performance obligations jumped 25% — a fancy way of saying future demand looked pretty healthy.
Management also guided for 21.5% subscription revenue growth in Q1, so this isn’t a low-stakes earnings bingo card. If the company confirms that customers are still paying up for its workflow and AI tools, the stock could get another leg higher. If not, the market may decide the AI party was a little over-catered.
The bigger picture
ServiceNow has also been using buybacks to keep shareholders warm, including a $5 billion repurchase authorization and an expected $2 billion accelerated buyback. So the company has been doing the classic “growth story plus capital returns” combo meal.
Big picture: today’s report is less about one quarter and more about whether ServiceNow can keep selling the idea that it’s the AI control tower for business reinvention — without the hype outrunning the numbers.