Shares of software company ServiceNow (NYSE:NOW) fell in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $3.41, which beat analysts’ consensus estimate of $3.13 per share.
In addition, sales increased by 23.8% year-over-year, with revenue hitting $2.6 billion. This beat analysts’ expectations by $10 million.
Looking forward, management now expects subscription revenue for FY 2024 to be in the range of $10.56 billion to $10.575 billion. The company also anticipates operating and free cash flow margins of 29% and 31%, respectively.
Is NOW Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NOW stock based on 29 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 68% rally in its share price over the past year, the average NOW price target of $856.57 per share implies 14.78% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
