03:35 PM EDT, 10/17/2024 (MT Newswires) -- ServiceNow ( NOW ) is expected to report a "strong" Q3 but the company is unlikely to raise its 2025 growth estimates via its Q4 guidance, which could "underwhelm" investors," Oppenheimer said in a note to clients Thursday.

The investment firm estimates ServiceNow ( NOW ) Q3 earnings of $3.50 per share and revenue of $2.74 billion, up from $2.92 and $2.29 billion a year earlier. The Street forecasts EPS of $3.45 and revenue of $2.75 billion, according to the note.

"However, the earnings set-up looks less favorable owing to high expectations and multiples that are apparently already predicting a materially successful outcome for the business in Q3 and over the next 12 months," Oppenheimer said.

The results may not be a catalyst for the company's stock but could reaffirm investors' positive view of the business momentum, Oppenheimer added.

The company will release its Q3 results next Wednesday.

Meanwhile, ServiceNow's ( NOW ) Q4 current remaining performance obligations, or CRPO, result needs upside to support a higher 2025 subscription revenue growth consensus estimate, Oppenheimer said. However, there is a tough year-over-year comparison for Q4 CRPO so the company may opt not to raise its growth estimates for 2025 by guiding Q4 "aggressively," it added.

Oppenheimer reiterated its outperform rating on the stock and raised its price target to $1,020 from $825.

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