Earnings season is in full swing, and while some names are tripping over low bars, others are launching into orbit.
Enter: ServiceNow $NOW.
The cloud workflow juggernaut delivered a double beat, crushing top and bottom line expectations.
Revenue came in at $3.09B, beating estimates, while EPS landed at $4.04, easily topping the $3.83 consensus.
Wall Street responded with fireworks...
The stock exploded by 15.5%, marking its best earnings reaction in company history.
So what’s fueling this move?
Beyond just the numbers, investors are leaning into the company’s strong AI-driven growth, sticky enterprise demand, and an upbeat full-year outlook that was better than expected.
In a quarter where many tech names are guiding lower, ServiceNow came out swinging with confidence.
When a stock prints new highs on good news, that's the kind of behavior bulls want to see, especially in a choppy tape.
Add to that a record earnings-day pop? This is a stock that we want to get involved with.
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Allegion $ALLE had the best reaction score after reporting a double beat.
The company reported revenues of $940M, versus the $920M estimate, and earnings per share of $1.86, versus the $1.67 estimate.
Fiserv $FI had the worst reaction score after reporting mixed results.
The company reported revenues of $4.79B, versus the $4.83B estimate, and earnings per share of $2.14, versus the $2.08 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
NOW had its best earnings reaction ever:
ServiceNow rallied 15.5% after this earnings report, and here's why:
They crushed all major topline and profitability expectations and raised guidance for the year.
The amount of AI business has more than quadrupled year-over-year.
They closed over 72 transactions over $1M in net new annual contract value.
This is one of the hottest AI companies in the world, and the market loves it...
The stock decisively reclaimed the VWAP anchored to the all-time high on the heels of this report.
In addition, the price closed above a key Fibonacci extension level.
If NOW is above 936, the path of least resistance is higher for the foreseeable future.
CMCSA has been punished for 5 of its last 7 earnings reports:
Comcast fell nearly 4% after this earnings report, and here's why:
The company is rapidly losing customers:
Domestic broadband customers fell by 199,000
Domestic video customers fell by 427,000
Connectivity & platforms customers fell by 228,000
Theme park revenue fell 5.2% year-over-year.
Revenue and net income are flatlining/declining, and the management team hasn't given the market a reason to believe this will change.
This company's fundamentals are deteriorating faster than almost every S&P 500 component.
And this isn't anything new...
The stock is carving out a prolonged (nearly a decade) distribution pattern. This suggests things could significantly worsen if and when the bears take control of the primary trend.
If CMCSA closes below 30, the path of least resistance will shift from sideways to lower.
Thank you for reading.
- The Beat Report Team
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