ServiceNow, Inc. (NYSE:NOW) shares are trading higher amid sympathy with Accenture plc (NYSE:ACN) after the company reported better-than-expected fourth-quarter results and issued FY27 sales guidance above estimates.
Accenture shares jumped around 19% to $217.63 on Wednesday after the company issued fiscal 2027 revenue guidance above analyst expectations. The stock had declined about 32% in 2026 amid concerns over AI’s potential impact on labor-intensive services.
• ServiceNow stock is showing upward movement. Why are NOW shares climbing?
Accenture Earnings Snapshot
Accenture reported fourth-quarter earnings of $3.29 per share, topping the $3.18 estimate, while revenue rose 6% year over year to $18.70 billion, above the $18.03 billion consensus.
The company expects fiscal 2027 adjusted earnings of $14.39 to $14.81 per share, compared with the analyst estimate of $14.63. The company projects revenue of $76.43 billion to $78.65 billion, compared with the $76.41 billion analyst estimate.
ServiceNow Launches "Flow" AI Service Desk for Chat Automation
Today, ServiceNow disclosed that it is rolling out "Flow,". It is a startup within the company that targets AI-native users with a service desk that "deploys instantly" and lets teams automate workflows directly inside chat channels using natural language. The pitch is speed and simplicity — turning chat-based requests into automated actions without heavy setup.
ServiceNow Earnings Preview and Analyst Price Targets
Looking further out, the next major catalyst for the stock arrives with the October 28, 2026 (estimated) earnings report.
- EPS Estimate: 85 cents (Down from 96 cents YoY)
- Revenue Estimate: $3.93 Billion (Up from $3.41 Billion YoY)
- Valuation: P/E of 83.8x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $143.71. Recent analyst moves include:
- Cantor Fitzgerald: Overweight (Raises Target to $174.00) (Sept. 21)
- Needham: Buy (Raises Target to $155.00) (Sept. 11)
- BTIG: Buy (Raises Target to $170.00) (Sept. 8)
How ServiceNow Ranks On Growth, Value and Momentum
Below is the Benzinga Edge scorecard for ServiceNow, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 70.5) — The stock is showing strong relative strength versus the broader market, consistent with its position above key longer-term moving averages.
- Quality: Neutral (Score: 34.05) — The fundamentals screen as middle-of-the-pack, suggesting execution matters more than "automatic" quality premium.
- Value: Weak (Score: 8.32) — The valuation profile is expensive versus typical peers, which can amplify downside if growth expectations cool.
- Growth: Bullish (Score: 72.19) — The market is rewarding the company for growth characteristics, which can support dips as long as revenue expectations hold up.
The Verdict: ServiceNow’s Benzinga Edge signal reveals a growth-and-momentum-led profile with a clear premium valuation trade-off. For longer-term bulls, the setup works best if price holds the $130.50 support zone while the company keeps delivering growth that justifies the multiple.
See More: Top Value Stocks
Top ETFs Holding ServiceNow Stock (NOW)
- iShares Expanded Tech-Software Sector ETF (BATS:IGV): 4.68% Weight
- Dana Unconstrained Equity ETF (NYSE:DUNK): 9.89% Weight
- Nicholas Global Equity and Income ETF (NYSE:GIAX): 5.00% Weight
Significance: Because NOW carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
NOW Stock Price Action
NOW Stock Price Activity: ServiceNow shares were up 1.59% at $136.14 at the time of publication on Thursday, according to Benzinga Pro data.
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