ServiceNow (NOW) will announce its first-quarter 2026 earnings on April 22, with projected revenues of $3.75 billion, reflecting a 21.4% increase compared to the same quarter last year. The earnings consensus estimate stands at 95 cents per share, a 17.3% growth from last year.
As of the end of 2025, ServiceNow served over 8,800 customers, including more than 85% of the Fortune 500, signaling strong market demand for its cloud-based solutions. In Q4 2025, the company closed 244 deals worth over $1 million each, showcasing significant enterprise engagement. However, a shift towards AI-native solutions is expected to impact subscription revenue growth, with projections between $3.65 billion and $3.67 billion for Q1 2026.
Despite its robust customer portfolio, ServiceNow shares have declined 36.9% this year, underperforming the sector, as competition intensifies from key players like Microsoft, Oracle, and Salesforce. Analysts note a stretched valuation, with a forward price/sales ratio of 22.01X, higher than its industry peers.
