ServiceNow Inc (NOW) FY2025Q4 Earning Prediction
ServiceNow Inc (NOW) is set to release its FY2025Q4 earnings performance on 01/28 05:00:00 in After Hours trading. Consensus forecasts predict a revenue of 4.00B and an earnings per share (EPS) of 0.89 for the FY2025Q4. With Intellectia's exclusive AI algorithms, users can predict whether the earnings will beat or miss expectations before the report drops. Leverage this powerful tool to strategize and position your trades ahead of the earnings release!
AI Earnings Prediction
The earnings forecast indicates a likely 'Beat' scenario driven by strong AI product adoption, subscription revenue growth, and stable renewal rates, despite minor acquisition-related risks.
Scenario Analysis
Key Indicators Forecast
No data
Prediction Logic & Rational
Key Fact Data Insights:
- AI Product Momentum & Partnerships:
- Strategic collaboration with OpenAI (direct access to GPT- 5.2 models) and Microsoft enhances ServiceNow’s AI-powered automation capabilities, accelerating adoption of its AI Control Tower.
- Over 1,000 partners transitioned to the revamped Partner Program, expanding distribution for AI agents.
- Large-Deal Momentum:
Continued growth in deals >$10M (e.g., federal/institutional contracts) indicates enterprise adoption despite Stifel’s isolated $15M federal spending cut.
Armis acquisition ($ 7.75B) strengthens IoT/OT security workflows, opening new verticals (healthcare, manufacturing).
- Subscription Revenue Strength:
- Analysts (Jefferies, Citi, BMO) note “robust close” to Q4 with budget flush activity, supporting subscription revenue beats. Citi’s “upside catalyst watch” highlights strong pipelines.
- Renewal Rate Stability:
- Renewal rates remain near 97-98%, with authID integration enhancing security for contact centers (critical for retention).
Offsetting Risks:
Armis acquisition costs may dilute short-term FCF margins (200bps impact per DA Davidson).
KeyBanc’s downgrade flags SaaS disruption risks, but bullish analysts (Goldman, BTIG) counter this with optimism around AI adoption.
Tactical Strategy Recommendations
Play 1: Long Stock + Hedged Put Spread
- Buy shares at $128.56; upside to $140+ on Beat.
- Hedge with Jan 2026 $120 puts (cost: ~$3.50) to mitigate dilution/acquisition risks.
Play 2: Bull Call Spread
- Buy $130 calls / sell $145 calls (Jan 2026 expiry) for reduced premium risk.
Rationale: Low expectations (-31% underperformance) amplify upside potential if Fact Data trends (AI traction, partner growth) materialize. Acquisitions add long-term optionality but require hedging near-term execution risks.
Earnings Surprise Analysis
NOW Transcript
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.
The earnings call presents a positive outlook with strong subscription revenue growth, optimistic guidance, and robust AI adoption. The Q&A section confirms high demand and strategic positioning in AI workflows, despite prudence in guidance due to external factors like government shutdowns. The proactive approach to Q4 renewals and strong renewal rates further support confidence in guidance. Overall, the sentiment leans positive, with no significant negative trends or uncertainties highlighted.
The earnings call highlights strong financial performance with a 2% upside in revenue guidance, robust new logo acquisition, and a strategic focus on AI-driven solutions. The company's differentiation in the AI market and strategic initiatives like NowNext AI suggest positive market sentiment. However, there is some caution around stable operating margins due to strategic investments. Overall, the positive outlook and strategic focus on AI transformation indicate a likely positive stock price movement.
NOW Slides
NOW Report
Frequently Asked Questions
What is the ServiceNow Inc FY2025Q4 Earnings Release Date and Time?
ServiceNow Inc (NOW) is scheduled to release its FY2025Q4 earnings report onJan 28, 2026, After Hours(approximately 4:00 PM ET). This timing allows investors to react during after-hours trading, with a conference call typically following shortly after.
What Are the Consensus Forecasts for ServiceNow Inc FY2025Q4 Revenue and EPS?
Analysts' consensus predicts 4.00B in revenue and an EPS of 1.00 for ServiceNow Inc's FY2025Q4.
What Does Intellectia's AI Predict for ServiceNow Inc FY2025Q4 Earnings?
Intellectia's exclusive AI algorithms forecast a Beat forServiceNow Inc's FY2025Q4 earnings, with a prediction date of Jan 28, 2026. ServiceNow Inc The earnings forecast indicates a likely 'Beat' scenario driven by strong AI product adoption, subscription revenue growth, and stable renewal rates, despite minor acquisition-related risks.
How Can I Use This Earnings Prediction to Trade NOW Stock?
Leverage Intellectia's AI forecast to position trades ahead of theJan 28, 2026 release—consider calls for a beat scenario or protective puts for misses. Focus on pre-market volatility, and use the scenario probabilities to build strategies around revenue and guidance updates.
How Accurate Is Intellectia's AI for Earnings Predictions Like ServiceNow Inc FY2025Q4?
Intellectia's predictions are backed by rigorous backtesting, showing a high hit rate for Beat and Miss calls compared to traditional analysis. While no forecast is 100% certain, we provide probability-based scenarios (e.g., 50% chance of a *Beat*) and detailed rationales to help you make informed decisions. Combine our insights with your strategy for the best results—it's like having a co-pilot for earnings season! Empowering users to strategize trades before reports drop.
How does AI Earnings Prediction generate its forecasts?
AI Earnings Prediction uses advanced Large Language Models (LLMs) to analyze a wealth of data, including past earnings transcripts, real-time market sentiment, analyst insights, and company news from the last three months. It focuses on key indicators like revenue, EPS, and margins to predict whether a company will *Beat*, *Miss*, or remain Neutral relative to market expectations. Think of it as a super-smart analyst crunching numbers and news 24/7 to give you a trading edge!
When are the predictions available, and how often are they updated?
Predictions are generated two days before a company’s earnings release (e.g., 5:00 PM ET on Feb 13 for a Feb 15 report) to capture the latest market and company data. They’re updated in real-time if significant news breaks, ensuring you get fresh insights.
Can I use AI Earnings Prediction for all types of stocks?
Currently, AI Earnings Prediction focuses on companies with market caps above $40 billion, covering major players like SPG, AAPL, MSFT, and NVDA for the 2025-2026 earnings seasons. We prioritize high-impact stocks with robust data to ensure reliable forecasts. Stay tuned as we expand coverage to more companies based on user demand!
