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Investing.com - JMP Securities has reiterated its Market Outperform rating and $1,300 price target on ServiceNow (NYSE:NOW) following the company’s second-quarter 2025 financial results that exceeded analyst expectations. According to InvestingPro data, the company maintains an impressive gross profit margin of 78.92% and has received a "GOOD" overall financial health score, supporting the bullish analyst stance.
ServiceNow reported non-GAAP earnings per share of $4.09, significantly above the consensus estimate of $3.57. The company generated total revenue of $3.215 billion, surpassing the consensus forecast of $3.121 billion and representing a 22.4% year-over-year increase as reported, or 21.5% in constant currency. This performance aligns with the company’s strong five-year revenue CAGR of 26%, as reported by InvestingPro.
Subscription revenue reached $3.113 billion, exceeding the consensus estimate of $3.034 billion and growing 22.5% year-over-year as reported, or 21.5% in constant currency. This marks an acceleration from the previous quarter’s growth rates of 19.1% as reported and 20% in constant currency.
Current remaining performance obligations (cRPO) totaled $10.920 billion, above the consensus estimate of $10.490 billion, with year-over-year growth of 24.4% as reported and 21.5% in constant currency. JMP noted this beat constant currency guidance by 200 basis points, compared to beats of 150, 50, and 150 basis points in the three previous quarters.
ServiceNow shares rose 7% in after-hours trading following the earnings announcement, a notable reversal after declining 10% year-to-date, compared to an 8% increase for the Russell 3000 index during the same period. With a market capitalization of $198.4 billion and current trading levels slightly above InvestingPro’s Fair Value estimate, investors seeking detailed valuation analysis can access comprehensive Pro Research Reports, available for over 1,400 US stocks.
In other recent news, ServiceNow Inc. has reported its financial results for the second quarter of 2025, showing a strong performance. The company exceeded expectations with an earnings per share (EPS) of $4.09, compared to the anticipated $3.57. Additionally, ServiceNow’s revenue reached $3.22 billion, surpassing the forecasted $3.12 billion. These results mark a significant earnings surprise of 14.57%. Despite the positive financial performance, the stock experienced a slight dip in aftermarket trading. There were no other major corporate developments or analyst ratings changes reported for ServiceNow at this time.
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