Why ServiceNow Stock Is Skyrocketing Today

(NYSE: NOW) stock is surging Thursday after the company reported better-than-expected first-quarter results. The software company's share price had risen 15.2% as of 11:45 a.m. ET. Meanwhile, the S 500 was up 1.2%, and the Nasdaq Composite was up 1.7%.

ServiceNow published its Q1 results after market close yesterday and delivered a substantial earnings beat. Making the report even better, the company increased its full-year performance targets.

ServiceNow posted non-GAAP (adjusted) earnings per share of $4.04 on revenue of $3.09 billion. The sales performance was in line with the average Wall Street estimate, but beat the company's own guidance, and earnings for the period came in significantly ahead of the per-share profit of $3.83 called for by the average analyst target. The software specialist's revenue increased roughly 19% year over year in the period. The performance was driven by 19% growth for subscription revenue, which accounted for $3 billion of the overall sales total.

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Source Fool.com