Unveiling ServiceNow (NOW) Q1 Outlook: Wall Street Estimates for Key Metrics

The upcoming report from ServiceNow (NOW) is expected to reveal quarterly earnings of $3.79 per share, indicating an increase of 11.1% compared to the year-ago period. Analysts forecast revenues of $3.08 billion, representing an increase of 18.4% year over year.The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.Given this perspective, it's time to examine the average forecasts of specific ServiceNow metrics that are routinely monitored and predicted by Wall Street analysts.The combined assessment of analysts suggests that 'Revenues- Professional services and other' will likely reach $84.10 million. The estimate indicates a change of +5.1% from the prior-year quarter.The consensus estimate for 'Revenues- Subscription' stands at $3.00 billion. The estimate suggests a change of +18.8% year over year.Analysts' assessment points toward 'Current Remaining Performance Obligations(cRPO) - GAAP' reaching $10.10 billion. The estimate compares to the year-ago value of $8.45 billion.Based on the collective assessment of analysts, 'Remaining Performance Obligations (RPO) - GAAP' should arrive at $21.42 billion. Compared to the current estimate, the company reported $17.7 billion in the same quarter of the previous year.Analysts forecast 'Gross Profit (Non-GAAP)- Subscription' to reach $2.51 billion. The estimate is in contrast to the year-ago figure of $2.16 billion.The consensus among analysts is that 'Gross Profit (Non-GAAP)- Professional services and other' will reach $10.12 million. The estimate is in contrast to the year-ago figure of $13 million.View all Key Company Metrics for ServiceNow here>>>Over the past month, ServiceNow shares have recorded returns of -5.6% versus the Zacks S&P 500 composite's -6.3% change. Based on its Zacks Rank #3 (Hold), NOW will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks