ServiceNow Shares Surge 9% After Strong Q1 Earnings Report

ServiceNow's stock surged following its first-quarter earnings report, which surpassed analyst expectations for both earnings and revenue. The company posted an 18% rise in adjusted earnings per share and an 18.5% increase in total revenue, reaching $3.09 billion; subscription revenue grew nearly 20%. ServiceNow also reported a 22% jump in current remaining performance obligations, a key sales metric, and provided strong guidance for the next quarter, with subscription revenue forecasts above Wall Street estimates. The stock gained as much as 9% in after-hours trading, reflecting investor optimism. Analysts maintain an 'Outperform' consensus on the stock, with average price targets suggesting significant further upside. ServiceNow continues to expand beyond its IT services roots, recently acquiring AI software maker Moveworks to bolster its offerings.