• ServiceNow's EPS of $0.92 exceeded the estimated $0.88, showcasing a significant year-over-year improvement.
• The company's revenue reached $3.56 billion, surpassing both the estimated $3.52 billion and the Zacks Consensus Estimate by 1.24%.
• Despite a post-earnings share price drop, ServiceNow projects higher-than-anticipated subscription revenue growth for 2026, supported by strategic acquisitions.

ServiceNow (NYSE:NOW) is a prominent player in the IT services industry, known for its cloud-based solutions that help businesses manage digital workflows. The company has consistently demonstrated strong financial performance, as evidenced by its recent earnings report. ServiceNow's competitors include companies like Salesforce and Workday, but it continues to stand out with its robust growth and strategic acquisitions.

On January 28, 2026, ServiceNow reported an earnings per share (EPS) of $0.92, surpassing the estimated $0.88. This performance also exceeded the Zacks Consensus Estimate of $0.87, marking a significant improvement from the $0.73 EPS reported in the same quarter last year. The earnings surprise for this quarter is +5.84%, showcasing the company's ability to consistently outperform expectations.

ServiceNow's revenue for the quarter was $3.56 billion, exceeding the estimated $3.52 billion. This figure also surpassed the Zacks Consensus Estimate by 1.24%, reflecting a notable increase from the $2.96 billion recorded in the same period the previous year. The company's consistent revenue growth over the past four quarters highlights its strong market position.

Despite the positive earnings report, ServiceNow's shares fell by more than 5% following the announcement. However, the company remains optimistic about its future, projecting higher-than-anticipated growth in subscription revenue for 2026. This positive outlook is supported by a series of strategic acquisitions, including plans to acquire startups Armis and Veza, which are expected to enhance its capabilities in artificial intelligence and security.

ServiceNow's financial metrics indicate a strong valuation, with a price-to-earnings (P/E) ratio of approximately 77.88 and a price-to-sales ratio of 10.63. The company's enterprise value to sales ratio is 10.60, reflecting its valuation relative to sales. Additionally, ServiceNow's debt-to-equity ratio of 0.21 suggests a relatively low level of debt, while a current ratio of 1.06 indicates modest short-term financial health.