"ServiceNow's management guided Q1 2026 subscription revenue of $3,650 to $3,655 million, implying 21.5% year-over-year growth, with cRPO growth of 22.5%."
"Despite beating EPS estimates in Q4 2025, ServiceNow's stock fell 9.94% on earnings day, continuing to drop another 12.08% over the following week."
"ServiceNow's AI net new ACV more than doubled year over year in Q4, with a target of $1 billion ACV for AI products by 2026."
"Concerns over tightening federal budgets and shutdown risks have been flagged by ServiceNow, impacting government IT spending."
ServiceNow is set to report Q1 2026 earnings, with Wall Street expecting an EPS of $0.97 and subscription revenue around $3,652.5 million. The company has consistently beaten EPS estimates, but its stock price has declined due to investor concerns about AI affecting pricing power. In Q4 2025, ServiceNow reported an EPS of $0.92, exceeding estimates, yet the stock fell significantly post-earnings. Key areas to monitor include subscription revenue growth, AI momentum, and federal sector exposure amid budget constraints.
Read at 24/7 Wall St.
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