ServiceNow (NYSE:NOW) is set to give its latest quarterly earnings report on Wednesday, 2026-01-28. Here's what investors need to know before the announcement.

Analysts estimate that ServiceNow will report an earnings per share (EPS) of $0.72.

The market awaits ServiceNow's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

Last quarter the company beat EPS by $0.27, which was followed by a 2.52% increase in the share price the next day.

Here's a look at ServiceNow's past performance and the resulting price change:

Quarter	Q3 2025	Q2 2025	Q1 2025	Q4 2024
EPS Estimate	0.698	0.564	0.768	0.732
EPS Actual	0.964	0.818	0.808	0.734
Price Change %	3.000	4.000	15.000	-11.000

Stock Performance

Shares of ServiceNow were trading at $136.34 as of January 26. Over the last 52-week period, shares are down 40.39%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Insights on ServiceNow

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on ServiceNow.

Analysts have given ServiceNow a total of 25 ratings, with the consensus rating being Buy. The average one-year price target is $591.8, indicating a potential 344.59% upside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Palo Alto Networks, CrowdStrike Holdings and Fortinet, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Palo Alto Networks, with an average 1-year price target of $234.85, suggesting a potential 76.43% upside.
• Analysts currently favor an Buy trajectory for CrowdStrike Holdings, with an average 1-year price target of $577.29, suggesting a potential 333.69% upside.
• Analysts currently favor an Neutral trajectory for Fortinet, with an average 1-year price target of $84.4, suggesting a potential 36.59% downside.

Peer Analysis Summary

Within the peer analysis summary, vital metrics for Palo Alto Networks, CrowdStrike Holdings and Fortinet are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
ServiceNow	Buy	21.81%	$2.63B	4.52%
Palo Alto Networks	Outperform	15.66%	$1.84B	4.05%
CrowdStrike Holdings	Buy	22.18%	$926.44M	-0.87%
Fortinet	Neutral	14.38%	$1.39B	33.90%

Key Takeaway:

ServiceNow ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, ServiceNow is at the bottom compared to its peers.

Unveiling the Story Behind ServiceNow

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.

Unraveling the Financial Story of ServiceNow

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: ServiceNow displayed positive results in 3 months. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 21.81%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: ServiceNow's net margin is impressive, surpassing industry averages. With a net margin of 14.73%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.52%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): ServiceNow's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.29%, the company showcases efficient use of assets and strong financial health.

Debt Management: ServiceNow's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.21.

To track all earnings releases for ServiceNow visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.