ServiceNow, Inc.
NOW - NYSE - $91.16 ▲ +%3.23
-
Earnings Wed 22 Jul

ServiceNow opens the
books on Wednesday evening.

19 analysts' median target is $135[FMP target], stock is $91, +48.1% upside potential. After Q1 +0.0% EPS beat[FMP earnings], the stock moved -17.7%.

↓ summary below
Quick Take - in 40 seconds
B
BUY Council 4/6 - Moonshot 63

B = MoonshotScore 63[9-pillar formula] + Council 4/6[6-lens rule]. Form 4: 0 transactions[FMP Form 4].

Q4 consensus: revenue $3.9B[FMP est], EPS $0.85[FMP est]. 0 consecutive quarters of beat[FMP earnings].

Detailed analysis below ↓
$0.85 EPS Estimate Last year $0.92 - +4% YoY YoY
0 Beat Streak Expectations beaten consecutively for the last 0 quarters

Q1 EPS +0.0% beat[FMP] but the stock -17.7% D+1[FMP D+1]. Gina Mastantuono promised $141.0M CapEx + a sequential decline in Q4 during the Q1 earnings call[Gina Mastantuono capex transcript].

Watchlist

4 metrics stand out this quarter.

50% Investor Focus

New Logo Acv Growth

new_logo_acv_growth

New logo ACV growth accelerated to over 50% year-over-year in Q1, which included our largest net new logo deal ever at over $15 million.

"New logo ACV growth accelerated to over 50% year-over-year in Q1, which included our largest net new logo deal ever at over $15 million."

- Gina Mastantuono, President and Chief Financial Officer - Q1 FY26 Earnings Call - April 22, 2026
$27.7 billion Investor Focus

Rpo Growth

rpo_growth

ServiceNow's remaining performance obligation (RPO) reached $27.7 billion, growing at 23.5% year-over-year.

"RPO ended the quarter at approximately $27.7 billion, representing 23.5% year-over-year constant currency growth."

- Gina Mastantuono, President and Chief Financial Officer - Q1 FY26 Earnings Call - April 22, 2026
$1 billion Investor Focus

Now Assist Outperformance

now_assist_outperformance

Now Assist continues to outperform expectations, putting it on a trajectory to exceed our $1 billion target for 2026.

"Now Assist continues to outperform expectations, putting it on a trajectory to exceed our $1 billion target for 2026."

- Gina Mastantuono, President and Chief Financial Officer - Q1 FY26 Earnings Call - April 22, 2026
$1 million Investor Focus

Employee Works Success

employee_works_success

Since the launch of Employee Works, there have been 6 new ACV deals above $1 million.

"As Bill mentioned, we've already closed 6 deals above $1 million in net new ACV."

- Gina Mastantuono, President and Chief Financial Officer - Q1 FY26 Earnings Call - April 22, 2026

Stock Expert AI - Methodology

Do our 9 pillars, 7 perspectives, and Munger lens point in the same direction?

MoonshotScore 63 / 100

9-pillar methodology. Revenue Growth and Gross Margin strong. Operating Leverage weak.

How is it calculated? ->
Revenue Growth9.0Q1 vs Q2: fast growth (+17.3%)
Gross Margin8.0Q1: very high margin (75.1%, software/cloud territory)
Operating Leverage1.0op margin average (13.3%)
Cash Runway10.0FCF very strong ($1.5B, 10.8x CapEx)
R&D Intensity3.0very high R&D (22.1%, margin pressure risk)
Price Momentum4.0RSI 43.7 weak momentum, 50d below
News Sentiment9.0strong buy consensus (90%)
Council Score 4 / 6 Bullish

6 investor frameworks. 4 bullish (Ray Dalio, Klarman, Buffett, Munger), 1 bearish (Ken Griffin), 1 neutral (Jim Simons).

How is it calculated? ->
Ray Dalio macro - target upside +48.1%
Ken Griffin flow - 50d MA below
Jim Simons quant - RSI 44
Klarman value - target upside +48.1%
Buffett quality - ROE score 4/5
Munger valuation - target upside +48.1%
Munger's Mindset character & balance sheet lens
Undervalued

Quality business, discounted price.

How is it calculated? ->
Financial HealthModerate
Margin of SafetyStrong
Interest CoverageAdequate
ROIC vs WACCHealthy
Technical Levels - Pre-earnings positioning

What levels is the stock being tested at?

RSI(14)
43.7 RSI 43.7 weak momentum, 50d below
MACD
-11.70 price below 50d - resistance dominant
50d MA
$103 stock 11.7% below - short-term resistance
200d MA
$150 stock 39.2% below - long-term pressure
Volume (10d)
-29% decrease - low participation
Resistance
$135
Analyst median target - upgrade trigger if broken
Current
$91
Pre-earnings position
Support
$127
Invalidation - close below this is a technical breakdown
Pattern
Range
$127-$135 band - earnings breakout/breakdown trigger

Past Performance

ServiceNow,'s last 8 quarters: 0 consecutive beats.

BEAT
Q2 FY25
$0.82 vs $0.71 est - +4.2%
BEAT
Q3 FY25
$0.96 vs $0.85 est - +2.5%
BEAT
Q4 FY25
$0.92 vs $0.89 est - -9.9%
MISS
Q1 FY26
$0.97 vs $0.97 est - -17.7%

Q1 (April 22, 2026): EPS $0.97 vs $0.97 est[FMP], +0.0% beat. D+1 movement: -17.7%[FMP D+1]. Decline despite beat - market reacted to guidance, not numbers.

Three scenarios: what could happen?

EPS < $0.82 (no guidance)

Q1: EPS $0.97 vs $0.97 beat[FMP], stock -17.7% D+1[FMP].

Backlog concentration

No RPO/backlog concentration disclosed in Q1 earnings call.

CapEx shock

Q1 CapEx $141.0M[FMP cashflow]. Q1 op margin 13.3%[FMP op margin] - this level in Q4 is sensitive to CapEx revision risk.

Framework - Position discipline

After the data arrives: 3 scenarios, 3 windows

Not advice - a structural framework for earnings night. Decision discipline is yours.

Scenario A - Beat
Q4 EPS > $0.85 + CapEx discipline
Threshold: EPS > $0.85[FMP est].
Target: Break above median target $135[FMP target]; high target $225[FMP] upper bound.
Scenario B - In-Line
EPS approx $0.85 + CapEx < $141.0M
Threshold: EPS approx $0.85[FMP est], Q4 CapEx < $141.0M[FMP].
Target: Consolidation in the band between current $91[FMP] and median $135[FMP].
Scenario C - Miss
EPS < $0.82 or CapEx >= $141.0M
Threshold: EPS < $0.82[FMP estx0.97].
Target: Current $91 below SMA200 $150[FMP], if rejection continues, $127[derived] support activates.
Sizing
Earnings volatility -> max portfolio 1-2%. Waiting for earnings is not a gamble, it's a position entrustment.
Timing
IV crush within 24 hours post-earnings. Waiting for premium decay makes options preferable to spot.
Staging
Don't go all-in at once, divide into 3: initial reaction, 24 hours later, after Friday's close.

Market Outlook

What do 19 analysts say?

Wall Street Consensus
$135
12-month median target price (+48.1% upside potential)
43
BUY
4
HOLD
1
SELL
Risk Management
$127
Invalidation level - critical support threshold
$103 - 50-day MA (below, -11.7%)
$150 - 200-day MA (below, -39.2%)
IV Crush risk (sudden drop in inflated option premiums before earnings): Option premiums are inflated before earnings.
Verdict - NOW Q4 FY26
B

You read it in 5 minutes. When the numbers come out on Wednesday evening - you know what you're looking at.

Data arrives at night. The framework is ready now.

Data arrives on Wednesday evening. The framework is ready on this page: Q4 EPS threshold $0.85[FMP], CapEx threshold "below $141.0M"[Gina Mastantuono]. Two anchors, three scenarios.

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Educational tool, not investment advice. Past performance does not guarantee future results.

Calendar

Catalyst Calendar - 90-day forward look

Jul 22, 2026EARNINGSQ4 FY26 results (after market close) + earnings call
Jul 23, 2026PRICEFirst trading day after earnings - 200dMA test + IV crush
Sep 5, 2026FILING10-Q deadline - segment breakdown + RPO detail (SEC rule: quarter-end + 45 days)
~Oct 22, 2026EARNINGSQ1 FY27 (next quarter, date not yet scheduled in FMP)

DATA GAP: Events not in the FMP /stable/calendar feed - Investor day, analyst day, product launches, regulatory dates. These require company IR page scraping or manual calendar entry.

Frequently Asked Questions

What does the NOW earnings preview cover?

This NOW (NOW) earnings preview covers the analyst consensus, key catalysts, and what to watch on the earnings call.

What should investors watch for in NOW earnings?

Consensus EPS, revenue guidance, segment growth rates, and the tone of management commentary — the full breakdown with sources is on this page.