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ServiceNow Stock Gains After-Hours On Q3 Earnings: Here's Why

Benzinga2023-10-26

ServiceNow, Inc. (NYSE:NOW) shares are trading higher in Wednesday's after-hours session after the company reported better-than-expected third-quarter financial results and issued guidance.

What To Know: The company posted earnings of $2.92 per share, beating the $2.56 estimate. Revenues clocked in at $2.29 billion, beating the estimate of $2.27 billion.

The company also reported subscription revenues of $2.2 billion, representing 27% year-over-year growth, and 24.5% in constant currency.

ServiceNow issued fourth-quarter subscription revenue guidance between $2.32 billion and $2.32 million. Full-year 2023 subscription revenues are anticipated to be between $8.63 billion and $8.64 billion.

"We've released more than 5,000 new capabilities this year, including generative AI for the use cases that matter most to our customers. Innovation drives growth. This is a highly unique, differentiated company that is reshaping business as the intelligent super platform for the enterprise," said ServiceNow Chairman and CEO Bill McDermott.

Related Link: Why Cassava Sciences Stock Surged Today

NOW Price Action: Shares of NOW were up 5.14% at $558.36 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by James Osborne from Pixabay

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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