ServiceNow (NOW) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

The market anticipates ServiceNow (NOW) will report robust year-over-year growth for the quarter ended June 2025, with consensus estimates projecting $3.54 EPS (+13.1%) and $3.12 billion in revenue (+18.8%). Key indicators, including a positive Zacks Earnings ESP of +2.11% combined with a Zacks Rank #3, suggest a high probability of an EPS beat, a trend reinforced by the company's consistent record of surpassing estimates in the past four quarters. This positions ServiceNow as a compelling earnings-beat candidate ahead of its July 23 release, potentially influencing near-term stock performance.

Analysis

ServiceNow is approaching its June 2025 quarterly report with strong market expectations for double-digit growth, specifically a consensus estimate of 18.8% year-over-year revenue growth to $3.12 billion and a 13.1% increase in EPS to $3.54. Key predictive indicators suggest a high probability that the company will exceed these earnings estimates. The Zacks Earnings ESP is a positive 2.11%, indicating that the most recent analyst revisions are more bullish than the broader consensus. This optimism is reinforced by ServiceNow's consistent track record of surpassing consensus EPS estimates for the last four consecutive quarters, including a 6.60% beat in the prior quarter. While the consensus EPS estimate has been revised slightly lower by 0.37% over the last 30 days, the combination of a positive ESP and a Zacks Rank of #3 (Hold) statistically points to a likely earnings beat, positioning the company favorably ahead of its July 23 release.

Key Decisions for Investors

• Given the positive Earnings ESP of +2.11% and a strong history of surprises, consider positioning for a potential earnings beat ahead of the report, as these indicators suggest a high probability of exceeding consensus EPS.
• Focus intently on management's forward-looking guidance during the earnings call, as the article notes this will be the primary driver of the stock's sustainable price movement, more so than the headline beat or miss itself.
• Despite the high likelihood of a beat, maintain a degree of caution as a positive earnings surprise does not guarantee a stock price increase; a post-earnings sell-off could still occur if the magnitude of the beat or forward guidance disappoints investors.
• Utilize the company's consistent performance as a benchmark, but be prepared to reassess positions based on the quality of the earnings and, most importantly, the outlook for future quarters.