NOW

ServiceNow NOW is scheduled to release its second-quarter 2026 results on July 22.The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $3.92 billion, indicating 22% growth from the figure reported in the year-ago quarter.The consensus mark for earnings is pegged at 86 cents per share, unchanged over the past 30 days and indicating growth of 4.88% from the figure reported in the year-ago quarter. Image Source: Zacks Investment Research ServiceNow’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.47%. ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote Let’s see how things are shaping up prior to this announcement. ServiceNow’s second-quarter 2026 results are expected to have benefited from continued enterprise adoption of its AI-native platform, particularly Now Assist, AI Control Tower and Autonomous Workforce offerings. Management indicated that AI demand continues to exceed internal expectations, with Now Assist NNACV outperforming forecasts, customers spending more than $1 million, growing more than 130% year over year, and EmployeeWorks already closing multiple seven-figure deals shortly after launch. The integration of Moveworks is also expected to have contributed meaningfully to subscription growth as AI becomes embedded across the platform.Growth in Security & Risk, AI-native CRM and EmployeeWorks is likely to have remained a key driver in the reported quarter. The Armis and Veza acquisitions expanded ServiceNow’s AI governance, identity management and cybersecurity capabilities, while AI-powered CRM and CPQ solutions continue to replace legacy platforms. NOW highlighted strong traction in sales CRM, with NNACV growing more than fivefold year over year, supported by increasing enterprise demand for workflow automation and AI-enabled customer service.However, NOW is expected to have suffered from macroeconomic uncertainty and longer enterprise spending cycles. Operating expenses are likely to have increased due to the integration of Moveworks, Armis and Veza acquisitions, while NOW continues investing aggressively in product innovation and go-to-market expansion. Stiff competition from Salesforce CRM, Microsoft MSFT, Oracle ORCL and other enterprise software vendors that are rapidly embedding generative AI into their platforms, requiring continued investm...

Roper Technologies (ROP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This industrial equipment maker is expected to post quarterly earnings of $5.29 per share in its upcoming report, which represents a year-over-year change of +8.6%. Revenues are expected to be $2.1 billion, up 7.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.45% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power i...

This article first appeared on GuruFocus. ServiceNow (NYSE:NOW) heads into second-quarter earnings with a constructive setup, as conservative guidance, improving federal demand and positive reseller checks could support an upside surprise, according to BNP Paribas. Analyst Stefan Slowinski kept an Outperform rating and $140 price target. He expects net-new annual contract value to accelerate in the second half, helping organic subscription growth finish near 19%, up from roughly 18% in Q1. Warning! GuruFocus has detected 3 Warning Sign with NOW. Is NOW fairly valued? Test your thesis with our free DCF calculator. ServiceNow sells cloud software that helps companies automate IT, security, customer service and workplace workflows. Its platform is increasingly tied to AI and cybersecurity spending across large enterprises and government agencies. For Q2, ServiceNow guided to 21% to 21.5% constant-currency subscription growth, with acquisitions adding about 225 basis points. BNP believes the Armis contribution may be understated, creating room for a revenue beat. The bank also expects easier U.S. federal comparisons as ServiceNow moves past DOGE and shutdown-related pressure.

Wall Street expects a year-over-year increase in earnings on higher revenues when ServiceNow (NOW) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This maker of software that automates companies' technology operations is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of +4.9%. Revenues are expected to be $3.92 billion, up 22% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power...

Software stocks were hammered after IBM preannounced weaker-than-expected Q2 financial results. Shares in IT services firms also fell.

IBM shares tumbled Tuesday after the software giant posted preliminary results for the second quarter that disappointed. IBM CEO Arvind Krishna said some of IBM’s customers are pulling back as memory chips and server prices soar. IBM stock is getting hammered and dragging other software stocks down with it after the tech giant warned clients are pulling back spending. Shares of International Business Machines (IBM) plunged 25% Tuesday after CEO Arvind Krishna blamed a weakening software environment for disappointing preliminary results. The move single-handedly shaved over 400 points off the Dow Jones Industrial Average. Other software stocks also slid, with Salesforce (CRM), Adobe (ADBE), Intuit (INTU), and ServiceNow (NOW) each losing between 2% to 6%. (For more reporting from Investopedia on today’s market moves, click here.) Krishna said in a letter to investors that the tech giant “faltered” in the second quarter as some of IBM’s customers cut back on software to focus spending on servers and memory products which have seen prices soar in recent months. IBM’s warning could be taken as a discouraging sign for other software providers ahead of their earnings. IBM said Tuesday that it expects second-quarter revenue to come in at $17.2 billion, up 1% year-over-year but below the $17.8 billion analysts had been expecting, per Visible Alpha estimates. IBM said it will likely report earnings per share of $2.27, well below the $2.60 analysts called for, while adjusted EPS is seen coming in at $2.93, closer to the $2.98 analyst consensus. Investors will get the chance to hear more from IBM executives on the lackluster second-quarter performance and IBM’s outlook for the rest of the year when the company reports its quarterly results after the closing bell next Wednesday. With Tuesday’s slump, IBM shares have lost 27% their value since the start of the year, pulling back sharply from their record high at the start of June. This article has been updated since it was first published to reflect more recent prices and include the impact of IBM’s stock move on the Dow Jones Industrial Average. Read the original article on Investopedia

IBM stock suffered its worst day ever on Tuesday after the company’s preliminary second-quarter earnings missed analysts’ targets. In a letter to shareholders, CEO Arvind Krishna explained the shortfall was largely driven by the company’s infrastructure business. “What played out was worse than our expectations,” Krishna wrote.

Shares in IBM plunged more than 25% on Tuesday after the US tech giant released disappointing preliminary second-quarter results. IBM’s stock was on track for an even steeper single-day decline than it suffered during ⁠the 1987 “Black Monday” crash. IBM had issued a profit warning and blamed shifts in corporate customers’ spending. The company said revenue for the three months ending in June came in at $17.2bn, up just 1% year-over-year. The company said it had “faltered” in keeping pace with a move in corporate spending from software ⁠towards datacentre infrastructure and cybersecurity, and forecast second-quarter revenue below estimates, in a sign of the impact of AI on the ⁠sector. Related: Inflation cools to 3.5% in June in relief brought by brief US-Iran peace deal The warning triggered a ​slump of more than 25% in IBM’s shares and a selloff in the broader software sector on Tuesday. Microsoft, ServiceNow, Salesforce and Intuit fell between 3% and 5%. A global rush by tech companies to build out artificial intelligence infrastructure has sent demand for servers, memory chips and storage soaring – driving up prices and creating supply shortages across the industry. IBM said that toward the end of June, many of its big corporate customers rushed to buy that hardware to get ahead of expected price increases. That rush pulled spending away from IBM’s higher-margin mainframe computers and related software, which process millions of daily transactions for industries such as banking and airlines – the products the company had been counting on. It also noted that businesses were prioritizing cybersecurity spending given recent breakthroughs in AI hacking abilities. Related: Chasing new skills, going back to basics and pushing for collective action: how software engineers are adapting to AI Arvind Krishna, the IBM chief executive, said in a letter to investors, “In the last ‌few weeks of June, we saw clients shift their quarterly capex [capital expenditure] spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases.” He added that “numerous large deals” had failed to ​close as expected. The company’s expected revenue of $17.2bn for the second quarter paled in comparison with $17.86bn forecast by analysts. Adjusted earnings per share are expected to be $2.93, compared with analysts’ estimate o...

Investing.com -- Software stocks fell sharply Tuesday as disappointing preliminary results from IBM (NYSE:IBM) rippled across the sector, pulling shares of major software companies lower. "The IBM update will deliver a devastating blow to software/services stocks as investors will worry about the capex pivot negatively impacting the whole industry, but the race to secure hardware raises its own set of worries," Vital Knowledge analyst Adam Crisafulli said in a quick comment. Following IBM’s update, investors reacted sharply to the cooling sentiment in the broader software space: Accenture (NYSE:ACN): Fell 7% ServiceNow (NYSE:NOW): Dropped 8% Workday (NASDAQ:WDAY): Declined 9.7% Salesforce (NYSE:CRM): Slipped 6% Atlassian Corp Plc (NASDAQ:TEAM): Fell 8.3% SAP SE ADR (NYSE:SAP): Sank 5.5% Adobe NASDAQ:ADBE): Fell 6.1% The decline is rooted in a fundamental shift in enterprise capital expenditure (capex) caused by a global memory supply shortage. Here is why this dynamic is specifically hurting software stocks: Capex Reprioritization: IBM reported that, toward the end of June, its clients—facing a supply-constrained market—shifted their spending away from software and general-purpose IT to "lock in" hardware like servers, storage, and memory. Because memory prices have spiked—exacerbated by intense demand from AI data centers—enterprises are exhausting their budgets just to secure critical hardware. The AI Tax on Enterprise Budgets: The industry is currently experiencing a "structural" memory shortage. Hyperscalers and AI infrastructure providers are consuming the vast majority of high-bandwidth memory (HBM) and DRAM production. As a result, when enterprises do manage to secure hardware, they are paying significantly higher premiums, leaving less room in their annual budgets for software renewals, licensing, or new digital transformation projects. Short-Term Revenue Headwinds: Investors are concerned that this is not an isolated issue for IBM. If large enterprise clients are delaying software purchases to prioritize hardware inventory—a trend referred to as "capex reprioritization"—it suggests a near-term revenue slowdown for the entire software-as-a-service (SaaS) and consulting sector. IBM’s revenue of $17.2 billion missed the $17.86 billion consensus, with non-GAAP EPS of $2.93 falling short of the $3.02 estimate. Beyond the hardware buying shift, the compan...

With a market cap of $103.1 billion, ServiceNow, Inc. (NOW) is the AI control tower for business reinvention, providing a unified AI Platform that integrates with any cloud, AI model, and data source to orchestrate enterprise workflows. By connecting legacy systems, cloud applications, departmental tools, and AI agents into a single platform, ServiceNow enables organizations to automate operations, improve efficiency, and drive measurable business outcomes. The Santa Clara, California-based company is slated to announce its fiscal Q2 2026 results soon. Ahead of the event, analysts expect NOW to report a profit of $0.40 per share, a 9.1% decline from $0.44 per share in the year-ago quarter. It has exceeded Wall Street's earnings expectations in three of the past four quarters while missing on another occasion. Memory Demand Sent Seagate Soaring — But This Stock Looks Even Better Nvidia Is Still a Bargain. Analysts See 57% Upside in NVDA Stock. McDonald's Corp Stock May Have Hit Bottom - Ways to Play MCD Stock Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2026, analysts expect the business software specialist to report EPS of $2.34, an increase of 19.4% from $1.96 in fiscal 2025. In addition, EPS is anticipated to grow 28.2% year-over-year to $3 in fiscal 2027. Shares of ServiceNow have decreased 51.1% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 19.9% gain and the State Street Technology Select Sector SPDR ETF's (XLK) 47.9% return over the same period. Shares of ServiceNow tumbled 17.8% following its Q1 2026 results on Apr. 22 as the company projected a lower-than-expected full-year subscription adjusted gross margin of 81.5%, below analysts’ estimate, primarily due to the impact of recent acquisitions, including the Armis deal. Investors were also concerned that subscription revenue growth faced an approximately 75-basis-point headwind from delayed closings of several large on-premise deals in the Middle East caused by ongoing regional conflict. Although Q1 revenue rose 22% year-over-year to $3.77 billion and the company raised its full-year subscription revenue forecast to $15.74 billion - $15.78 billion, the weaker margin outlook overshadowed the otherwise strong growth and guidance....

TD SYNNEX (SNX) came out with quarterly earnings of $4.85 per share, beating the Zacks Consensus Estimate of $4.07 per share. This compares to earnings of $2.99 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +19.12%. A quarter ago, it was expected that this high-tech contractor would post earnings of $3.26 per share when it actually produced earnings of $4.73, delivering a surprise of +45.09%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. TD SYNNEX, which belongs to the Zacks Computers - IT Services industry, posted revenues of $19.57 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 16.23%. This compares to year-ago revenues of $14.95 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TD SYNNEX shares have added about 88.5% since the beginning of the year versus the S&P 500's gain of 7.5%. While TD SYNNEX has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TD SYNNEX was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stoc...

Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund returned -10.6% in Q1 2026, significantly lagging the S&P 500’s -4.3% returns. The letter noted the quarter as the worst for equities since 2022, with strong corporate earnings being overshadowed by the Iran War and a spike in oil prices. The effects of the AI revolution increased concerns in the investment community. Despite these uncertainties, the firm believes that the strength of the companies in the portfolio positions it to navigate short-term uncertainties and capitalize on long-term opportunities presented by the AI revolution. In addition, you can check the Portfolio’s top five holdings to see its best picks for 2026. In its first-quarter 2026 investor letter, Burke Wealth Management highlighted stocks like ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) is a cloud-based software company that provides a platform for automating and managing digital workflows. On June 23, 2026, ServiceNow, Inc. (NYSE:NOW) closed at $95.94 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was -6.05%, and its shares lost 52.28% over the past 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $98.94 billion. Burke Wealth Management stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter: ServiceNow, Inc. (NYSE:NOW) ranks 25 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 108 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the first quarter, compared to 118 in the previous quarter. In the first quarter of 2026, ServiceNow, Inc.’s (NYSE:NOW) subscription revenues increased 19% year-over-year to $3.67 billion. While we acknowledge the potential of ServiceNow, Inc. (NYSE:NOW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered ServiceNow, Inc. (NYSE:NOW) and shared the list of set-it-and-forget-it stocks to buy. In addition, please check out our hedge fund investor l...