By Denny Jacob
Shares of ServiceNow Inc. rose 13% to $415.27, extending Wednesday’s after-hours trading rally after the company forecast growth in subscription revenue.
The enterprise cloud computing solutions provider said it expects subscription revenue between $1.83 billion to $1.84 billion in the fourth quarter, a 20% to 21% increase year over year. The company is forecasting subscription revenue between $6.865 billion to $6.87 billion for the full year, a 23% increase from last year.
Analysts polled by FactSet had expected $1.87 billion in the fourth quarter and $6.92 billion for 2022.
“We continue to see a robust pipeline and maintain our investments in growth hires while the opportunity in front of us remains enormous,” said Chief Financial Officer Gina Mastantuono.
On Thursday, Morgan Stanley cut its target on ServiceNow shares to $520 from $540, Credit Suisse cut its target to $600 a share from $650 and Wolfe Research cut its target to $475 a share from $600 . BMO Capital raised its price target to $475 per share from $430, while Mizuho raised its target to $500 per share from $480.
Write to Denny Jacob at [email protected]