ServiceNow (NOW) Stock Jumps 5% as AI Contracts Hit $1 Billion Milestone
TLDR
- ServiceNow rose 4.5% on Friday to close at $144.71, on volume of 29 million.
- Q2 subscription revenue climbed 24.5% to $3.88 billion; total revenue hit $3.99 billion.
- AI annual contract value crossed $1 billion; management is targeting $1.5 billion by year-end.
- The stock trades at roughly 89x trailing earnings, well above peers like Salesforce and Oracle.
- Moore Capital and several other institutional investors added to positions in Q2; analysts hold a consensus โModerate Buyโ rating.
ServiceNow (NYSE: NOW) closed Friday at $144.71, up 4.5% on the session. Volume came in at 29 million, well above the 22.4 million average.
The stock is still trading about 26% below its 52-week high of $194.73, even after a roughly 70% climb from its yearly low of $81.24.
Q2 subscription revenue rose 24.5% to $3.88 billion. Total revenue came in at $3.99 billion, up 24% year over year, beating the consensus estimate of $3.93 billion.
EPS came in at $0.90, topping the $0.86 estimate. The company posted return on equity of 16.45% and a net margin of 11.34%.
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