RBC Capital analysts released their outlook on ServiceNow (NYSE:NOW) ahead of Wednesday’s Q1/23 earnings announcement.
While the analysts don’t see this as an inflection-type quarter given it’s a Q1, they look for a slight upside to results following resilient partner checks despite an uncertain macro environment.
The analysts expect a potentially 100 bps upside to subscription revenue growth versus guidance/consensus at 22.25%/22.2%. While the analysts believe fiscal 2023 guidance stays largely unchanged, they think there is the opportunity for estimates to move higher into fiscal 2024 on a firming macro.
The analysts raised their price target on the stock to $520 from $510 while reiterating their Outperform rating.