Upbeat ServiceNow Q1 Earnings, Now Stock Soars 10% to $900
ServiceNow (NYSE: NOW) rallied sharply in after-hours trading following its robust Q1 2025 earnings report, hinting at a bullish open...
Quick overview
- ServiceNow's stock surged over 10% in after-hours trading following a strong Q1 2025 earnings report, indicating a potential bullish open.
- The company reported subscription revenues of $3.005 billion, a 19% year-over-year increase, and adjusted EPS of $4.04, surpassing expectations.
- ServiceNow's contract income reached $10.31 billion, up 22% year-over-year, signaling strong future revenue momentum.
- Despite the positive earnings, the stock faces technical resistance at the 200-day SMA, which could limit further upside.
NOW stock has risen sharply in after-hours trading following its solid Q1 2025 earnings announcement, indicating a bullish open ahead despite recent slump headwinds.
Stock Rebound Gathers Momentum After Months of Decline
ServiceNow shares had been under pressure since peaking just below $900 in late January, trending lower for much of Q1. The decline briefly paused in mid-April as renewed buying interest began to emerge. From a low near $680, NOW stock rebounded to close Wednesday’s U.S. session at $814.08.
That momentum accelerated post-market, with the stock jumping over 10%—up more than $85—to trade near $900 after the release of better-than-expected quarterly results. This surge sets up a strong bullish open, though technical resistance remains at the 200-day Simple Moving Average (SMA), marked in purple on the daily chart.
NOW Stock Daily Chart – Will Open Above the 50 SMA Tomorrow
Service Now Q1 2025 Financial Highlights – Beating Expectations Across the Board
ServiceNow’s Q1 2025 earnings showed solid growth and outperformance:
- Subscription Revenues: $3.005 billion, marking a 19% year-over-year increase (20% in constant currency). This segment continues to power the company’s transformation narrative as enterprise clients lean into digital and AI automation tools.
- Total Revenues: $3.09 billion vs. $3.08 billion expected – a slight beat but reinforcing consistent delivery.
- Earnings Per Share (EPS): Adjusted EPS was $4.04, easily topping the $3.79 consensus forecast from Zacks. GAAP EPS stood at $2.20.
ServiceNow Contract Metrics and Future Revenue Indicators Show Strength
Remaining Performance Obligations (cRPO) and Enterprise Client Growth
The contract income was $10.31 billion as of March 31, 2025 – up 22% YoY (constant currency) and above forecast by 250 basis points. This metric offers a strong signal of future revenue momentum.
ServiceNow closed 72 transactions with a net new annual contract value (ACV) over $1 million. It also ended the quarter with 508 customers with ACV above $5 million, reflecting a 20% annual increase in large-scale enterprise engagements.
Outlook: Positive Momentum for Now Stock, But Watch Technical Resistance
Despite the strong earnings and renewed investor enthusiasm, NOW stock still faces a technical hurdle at the 200 SMA, which could act as initial resistance for further upside. However, the fundamental strength in revenue, recurring contracts, and robust enterprise adoption positions the company favorably for a longer-term bullish reversal.
Conclusion:
ServiceNow’s Q1 beat has reignited bullish momentum, lifting the stock over 10% in after-hours trading. While technical resistance looms near the 200-day SMA, investor sentiment has clearly shifted. With strong contract growth and consistent revenue expansion, the recent dip may prove to be a valuable entry point as NOW eyes a return to its January highs.
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