ServiceNow (NOW) Q3 2024 Earnings Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2026
0mins
Should l Buy NOW?
Source: NASDAQ.COM
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 88.890
Low
172.00
Averages
222.81
High
263.00
Current: 88.890
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ServiceNow Q1 Results Beat Expectations but Stock Declines
- Revenue Growth: ServiceNow reported a 22% year-over-year revenue increase to $3.77 billion in Q1, surpassing analyst expectations of $3.74 billion, yet the stock declined due to market concerns about future growth.
- Subscription Revenue Analysis: Subscription revenue rose 22% to $3.67 billion, but on a constant currency basis, growth slowed from 19.5% in Q4 to 19%, reflecting market anxiety over sustained growth.
- Remaining Performance Obligations: The company's remaining performance obligations (RPO) increased by 23.5% to $27.3 billion, with current RPO rising 21% to $12.45 billion, indicating future revenue potential despite a deceleration in growth rates.
- Future Outlook: ServiceNow anticipates a 22.5% growth in subscription revenue for Q2, raising its full-year guidance to between $15.735 billion and $15.775 billion, although concerns about AI's impact persist, necessitating investor attention on signs of accelerating growth.
See More
Atos Recognized as Leader in ISG 2026 Report for ServiceNow Ecosystem Partners
- Leadership in Europe: Atos has been recognized as a Leader in the ISG Provider Lens® 2026 report for ServiceNow ecosystem partners, particularly in the Innovation and Consulting & Implementation Services quadrants, highlighting its ability to deliver secure and compliant ServiceNow innovations in highly regulated environments, thereby enhancing its competitive edge in the market.
- Growth in the U.S. Market: Atos has also been named a Leader in ServiceNow Consulting and Implementation Services in the U.S., leveraging successful large-scale replatforming projects and industry-aligned blueprints to accelerate adoption of the Now Platform, further solidifying its market position in North America.
- Outstanding Innovation Capabilities: The ISG report emphasizes Atos' AI Insight and AI Ignite frameworks, which support the modernization of intelligent workflows on the ServiceNow platform, enabling clients to deploy solutions safely in complex IT environments, thus enhancing business value and operational efficiency.
- Strategic Investment and Development: Atos' global head of ServiceNow stated that ongoing investments in AI and security allow the company to maintain its leadership position in both European and U.S. markets, driving digital transformation and delivering maximum value to clients, further reinforcing its image as a trusted partner.
See More
SaaS Sector Faces Disruption from AI Innovations
- SaaS Sector Crisis: In 2026, SaaS stocks faced significant sell-offs due to the rise of AI technologies, leading to a widespread market phenomenon dubbed the 'SaaSpocalypse,' which severely impacted valuations and investor confidence across the industry.
- ServiceNow's AI Strategy: ServiceNow aims to become a leader in AI orchestration by launching its AI Control Tower and acquiring companies like Armis and Veza, which is expected to drive around 20% revenue growth and solidify its core position in customer data management.
- Salesforce's Market Positioning: Salesforce has strategically positioned itself as an ideal AI agent launching pad by introducing its Data 360 solution and acquiring Informatica, ensuring its dominance in customer data management, with projected low double-digit revenue growth over the coming years.
- Investment Choice Analysis: While both companies show strong potential for AI development, analysts suggest that ServiceNow's deeper customer integration and opportunities in AI orchestration make it a more attractive investment choice at a reasonable valuation.
See More
Comparative Analysis of AI Strategies: ServiceNow vs Salesforce
- Market Challenges: In 2026, SaaS stocks faced significant sell-offs due to fears that artificial intelligence could disrupt the industry, leading to a phenomenon dubbed the 'SaaSpocalypse,' which negatively impacted valuations and investor confidence across the sector.
- ServiceNow's AI Leadership: With the introduction of its AI Control Tower and acquisitions of Armis and Veza, ServiceNow is enhancing its capabilities in rights management and asset visibility, positioning itself to become a leader in agentic AI orchestration, which is expected to drive future growth for the company.
- Salesforce's Data Advantage: By launching its Data 360 solution and acquiring Informatica, Salesforce ensures its platform can effectively manage customer data, establishing itself as an ideal launching pad for AI agents, with projections of low double-digit revenue growth in the coming years.
- Valuation and Growth Potential: ServiceNow trades at a forward price-to-sales (P/S) multiple of 6 and a price-to-earnings (P/E) multiple of 22, with an expected revenue growth of around 20%, while Salesforce has a forward P/S of 3.7 and a P/E of 14, reflecting differing valuations and growth prospects in the age of AI.
See More
AI Enhances Enterprise Efficiency
- Accelerated Transformation: The continuous advancement of AI technology is significantly enhancing enterprises' operational efficiency and decision-making capabilities, which is expected to boost overall market competitiveness.
- Cost Control Optimization: The application of AI enables companies to predict demand more accurately, thereby reducing inventory costs and improving cash flow efficiency, ultimately enhancing profitability.
- Enhanced Customer Experience: By utilizing intelligent customer service systems, businesses can respond to customer needs more swiftly, increasing customer satisfaction and fostering greater loyalty.
- Improved Market Adaptability: The introduction of AI technology allows companies to respond more flexibly to market changes, quickly adjusting strategies to adapt to new business environments, ensuring long-term sustainable growth.
See More
ASIA PACIFIC COMPANIES LEVERAGE SERVICENOW FOR AI OPERATIONS DEVELOPMENT
Firms in Asia Pacific: Companies in the Asia Pacific region are increasingly focusing on enhancing their operational capabilities.
Service Utilization: There is a growing trend of utilizing services to build and improve operations within these firms.
See More
ServiceNow Q1 Results Beat Expectations but Stock Declines
- Revenue Growth: ServiceNow reported a 22% year-over-year revenue increase to $3.77 billion in Q1, surpassing analyst expectations of $3.74 billion, yet the stock declined due to market concerns about future growth.
- Subscription Revenue Analysis: Subscription revenue rose 22% to $3.67 billion, but on a constant currency basis, growth slowed from 19.5% in Q4 to 19%, reflecting market anxiety over sustained growth.
- Remaining Performance Obligations: The company's remaining performance obligations (RPO) increased by 23.5% to $27.3 billion, with current RPO rising 21% to $12.45 billion, indicating future revenue potential despite a deceleration in growth rates.
- Future Outlook: ServiceNow anticipates a 22.5% growth in subscription revenue for Q2, raising its full-year guidance to between $15.735 billion and $15.775 billion, although concerns about AI's impact persist, necessitating investor attention on signs of accelerating growth.
See More
Atos Recognized as Leader in ISG 2026 Report for ServiceNow Ecosystem Partners
- Leadership in Europe: Atos has been recognized as a Leader in the ISG Provider Lens® 2026 report for ServiceNow ecosystem partners, particularly in the Innovation and Consulting & Implementation Services quadrants, highlighting its ability to deliver secure and compliant ServiceNow innovations in highly regulated environments, thereby enhancing its competitive edge in the market.
- Growth in the U.S. Market: Atos has also been named a Leader in ServiceNow Consulting and Implementation Services in the U.S., leveraging successful large-scale replatforming projects and industry-aligned blueprints to accelerate adoption of the Now Platform, further solidifying its market position in North America.
- Outstanding Innovation Capabilities: The ISG report emphasizes Atos' AI Insight and AI Ignite frameworks, which support the modernization of intelligent workflows on the ServiceNow platform, enabling clients to deploy solutions safely in complex IT environments, thus enhancing business value and operational efficiency.
- Strategic Investment and Development: Atos' global head of ServiceNow stated that ongoing investments in AI and security allow the company to maintain its leadership position in both European and U.S. markets, driving digital transformation and delivering maximum value to clients, further reinforcing its image as a trusted partner.
See More
SaaS Sector Faces Disruption from AI Innovations
- SaaS Sector Crisis: In 2026, SaaS stocks faced significant sell-offs due to the rise of AI technologies, leading to a widespread market phenomenon dubbed the 'SaaSpocalypse,' which severely impacted valuations and investor confidence across the industry.
- ServiceNow's AI Strategy: ServiceNow aims to become a leader in AI orchestration by launching its AI Control Tower and acquiring companies like Armis and Veza, which is expected to drive around 20% revenue growth and solidify its core position in customer data management.
- Salesforce's Market Positioning: Salesforce has strategically positioned itself as an ideal AI agent launching pad by introducing its Data 360 solution and acquiring Informatica, ensuring its dominance in customer data management, with projected low double-digit revenue growth over the coming years.
- Investment Choice Analysis: While both companies show strong potential for AI development, analysts suggest that ServiceNow's deeper customer integration and opportunities in AI orchestration make it a more attractive investment choice at a reasonable valuation.
See More
Comparative Analysis of AI Strategies: ServiceNow vs Salesforce
- Market Challenges: In 2026, SaaS stocks faced significant sell-offs due to fears that artificial intelligence could disrupt the industry, leading to a phenomenon dubbed the 'SaaSpocalypse,' which negatively impacted valuations and investor confidence across the sector.
- ServiceNow's AI Leadership: With the introduction of its AI Control Tower and acquisitions of Armis and Veza, ServiceNow is enhancing its capabilities in rights management and asset visibility, positioning itself to become a leader in agentic AI orchestration, which is expected to drive future growth for the company.
- Salesforce's Data Advantage: By launching its Data 360 solution and acquiring Informatica, Salesforce ensures its platform can effectively manage customer data, establishing itself as an ideal launching pad for AI agents, with projections of low double-digit revenue growth in the coming years.
- Valuation and Growth Potential: ServiceNow trades at a forward price-to-sales (P/S) multiple of 6 and a price-to-earnings (P/E) multiple of 22, with an expected revenue growth of around 20%, while Salesforce has a forward P/S of 3.7 and a P/E of 14, reflecting differing valuations and growth prospects in the age of AI.
See More
AI Enhances Enterprise Efficiency
- Accelerated Transformation: The continuous advancement of AI technology is significantly enhancing enterprises' operational efficiency and decision-making capabilities, which is expected to boost overall market competitiveness.
- Cost Control Optimization: The application of AI enables companies to predict demand more accurately, thereby reducing inventory costs and improving cash flow efficiency, ultimately enhancing profitability.
- Enhanced Customer Experience: By utilizing intelligent customer service systems, businesses can respond to customer needs more swiftly, increasing customer satisfaction and fostering greater loyalty.
- Improved Market Adaptability: The introduction of AI technology allows companies to respond more flexibly to market changes, quickly adjusting strategies to adapt to new business environments, ensuring long-term sustainable growth.
See More
ASIA PACIFIC COMPANIES LEVERAGE SERVICENOW FOR AI OPERATIONS DEVELOPMENT
Firms in Asia Pacific: Companies in the Asia Pacific region are increasingly focusing on enhancing their operational capabilities.
Service Utilization: There is a growing trend of utilizing services to build and improve operations within these firms.
See More
