NOW Earnings

NOW reported its earnings on 2026-01-28, showcasing a revenue of 3.57B against an estimate of 3.52B, resulting in a 1.36% surprise. The EPS was 0.92, surpassing the expected 0.89 by 3.37%. The stock experienced a -9.94% price change on the earnings day and a -15.31% change over the next five days, reflecting market reactions to the results.

Following NOW's earnings announcement on 2026-01-28, the stock price moved by -9.94% on the day of the release. Over the subsequent five days, it saw a -15.31% change. Historically, NOW's stock price tends to shift by an average of -0.36% in the 10 days leading up to earnings and 0.85% in the 10 days following, providing insight into potential market.

For 2026/Q1, analysts estimate NOW's annual revenue to reach 3.68B, while the EPS is projected at 4.75. These estimates reflect recent revisions, with revenue estimates revised upward by 0.01% and EPS estimates revised upward by 0.01% over the past three months, indicating analyst expectation in the company's performance.

The correlation between NOW's stock price and earnings forecast revisions shows that positive revisions in revenue or EPS often strengthen the stock's fundamentals. Over the past three months, revenue estimates for FY2025 were revised upward by 0.01%, while EPS estimates moved revised upward by 0.01%. This trend suggests that price dips could present buying opportunities for investors.

Based on historical trends, NOW's stock price typically moves by -0.36% in the 10 days before its earnings and 0.85% in the 10 days after. For the upcoming 2026/Q1 earnings, analysts expect an EPS of 4.75 and revenue of 3.68B.

The earnings call summary highlights strong financial performance, with subscription revenue and operating margin exceeding guidance, and impressive free cash flow growth. The Q&A section reveals positive sentiment towards AI monetization and strategic partnerships, with concerns about AI adoption being addressed effectively. Despite some vagueness in management responses, the overall outlook is optimistic, with strong customer growth and government sector performance. The raised operating margin and free cash flow targets further bolster positive sentiment, suggesting a likely stock price increase in the coming weeks.