ServiceNow Earnings Preview: Analysts Expect EPS Growth Despite Recent Stock Weakness

ServiceNow (NYSE: NOW) is set to report its quarterly earnings tomorrow, with analysts forecasting an earnings per share (EPS) of $2.02. This would mark an increase of nearly 11% compared to the same period last year, indicating solid profit growth despite broader market volatility.

ServiceNow Share Price Struggles Despite Earnings Growth

Despite the expected rise in earnings, ServiceNow’s share price has gained less than 5% over the past 12 months. The stock has fallen approximately 35% from its recent peak, largely due to a broader US market sell-off that has hit technology stocks particularly hard. Last week, ServiceNow shares closed at $756.26.

After briefly dipping below its 2021 high, the stock has shown signs of recovery in the past two weeks. However, investors will be closely watching to see if the price can hold above this level through the next quarter, especially as sentiment around US economic outperformance begins to cool.

Key Technical Levels to Watch for NOW Stock

From a technical analysis perspective, initial support is seen at $707.59, followed by a more significant level at $637.93—last tested in May 2024. Notably, this May level also aligns with the current 200-day moving average (200MA), suggesting it could serve as a strong support zone if bearish momentum continues.

Bearish Momentum Remains, But MACD Suggests Oversold Conditions

The MACD (Moving Average Convergence Divergence) indicator remains in bearish territory, signalling continued downward momentum. However, the MACD is now at its lowest point since 2022—potentially indicating oversold conditions. This could spark a short-term bounce or increased buying interest ahead of the earnings announcement.

Investor Focus: Can ServiceNow Beat Expectations and Reignite Momentum?

As ServiceNow prepares to release its latest financial results, all eyes will be on whether the company can exceed Wall Street expectations and provide forward guidance strong enough to support a rebound in the stock price.