ServiceNow (NYSE:NOW) shares surged Friday on stronger-than-expected first-quarter results and an upbeat forecast despite the uncertain macroeconomic environment.
The enterprise technology company posted adjusted earnings of $4.04 per share on $3.09 billion in revenue. That topped a consensus estimate of $3.83 in earnings per share and $3.08 billion in sales, according to LSEG. Revenues grew about 19% from a year ago.
ServiceNow reported net income of $460 million, or $2.20 per share. That is up from $347 million, or $1.67 per share in the year-ago quarter. Current remaining performance obligations reached $10.3 billion, jumping 22% year over year. The company also lifted its full-year forecast.
“While our business remains strong, we are only flowing through part of those benefits into our full year outlook” to account for any pending risks from the geopolitical environment, the company said in a release.
Shares of ServiceNow have slumped about 12% this year amid a volatile market environment. Investors this earnings season are laser-focused on how companies are managing the macroeconomic backdrop in the wake of President Donald Trump’s sweeping tariff plans. Another fear for some companies operating in the public sector is cuts from the Department of Government Efficiency, or DOGE, cost-cutting campaign.
Public sector business grew 30% during the period, which included 11 federal deals topping $1 million. CEO Bill McDermott said during the earnings call that the company has had “very positive” discussions with DOGE, which is run by Tesla (NASDAQ:TSLA) CEO Elon Musk.
NOW shares handed over 86 cents to $938.05.
