Shares of ServiceNow (NYSE:NOW) gained in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $2.92, which beat analysts’ consensus estimate of $2.56 per share.
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Subscription revenue increased by 27% year-over-year, hitting $2.216 billion. This beat analysts’ expectations of $2.19 billion.
Looking forward, management now expects subscription revenue for Fiscal Year 2023 to be in the range of $8.635 billion to $8.640 billion. For reference, previous expectations were for $8.58 billion to $8.6 billion.
Is ServiceNow a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NOW stock based on 26 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average NOW price target of $650.83 per share implies 22.72% upside potential.
