ServiceNow inventory gained floor following the corporate’s newest quarterly report.
ServiceNow (NOW 4.56%) inventory posted features in Thursday’s buying and selling following the corporate’s newest quarterly report. The software program specialist’s share worth gained 4.2% within the session and had been up as a lot as 9.9% early within the day’s buying and selling.
ServiceNow revealed its second-quarter outcomes after the market closed yesterday, and the numbers got here in higher than Wall Road had anticipated. The corporate’s report confirmed continued synthetic intelligence (AI) tailwinds, and administration raised full-year efficiency targets for the enterprise.
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ServiceNow inventory jumps on robust Q2 numbers
ServiceNow recorded non-GAAP (adjusted) earnings per share of $4.09 on gross sales of $3.22 billion within the second quarter, beating the common analyst estimate’s name for per-share earnings of $3.57 per share on gross sales of $3.12 billion within the interval. Income was up roughly 22% 12 months over 12 months, and the enterprise closed out the quarter with remaining efficiency obligations of $23.9 billion — representing progress of 25.5% on a currency-adjusted foundation.
What’s subsequent for ServiceNow?
ServiceNow is seeing robust AI-related demand for its enterprise software program suite, and the corporate has raised its efficiency outlook for the 12 months on the heels of robust ends in the second quarter. Administration is now guiding for subscription income to return in between $12.77 billion and $12.79 billion. On the midpoint, the brand new steerage is up by $125 million in comparison with its earlier forecast.
As a number one enterprise software program supplier, ServiceNow seems to be poised to proceed benefiting from AI and digital transformation tendencies. Whereas features for the corporate’s valuation might open the door for draw back volatility within the close to time period, the corporate seems to be poised to ship wins for shareholders over the lengthy haul.
Keith Noonan has no place in any of the shares talked about. The Motley Idiot has positions in and recommends ServiceNow. The Motley Idiot has a disclosure coverage.
