5 Best Q3 Earnings Reports That Crushed Estimates

In this article, we will take a look at the 5 best Q3 earnings reports that crushed estimates. To see more such companies, go directly to 10 Best Q3 Earnings Reports That Crushed Estimates.

5. ServiceNow Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 93

ServiceNow Inc. (NYSE:NOW) ranks 5th in our list of the companies that crushed analyst estimates for Q3 earnings. Adjusted EPS in the quarter came in at $2.92, beating estimates by $0.37. Revenue came in at $2.29 billion, surpassing estimates by $20 million.

Here is what Baron Technology Fund has to say about ServiceNow, Inc. (NYSE:NOW) in its Q3 2023 investor letter:

“Despite near-term macro uncertainty, it’s important to frame that we find ourselves in the early innings of both the AI investment cycle and overall cloud penetration. We estimate cloud penetration to be between 25% and 30% versus the likely 70% to 75% level over time, if not even higher. AI deployments are literally just getting off the ground.Infrastructure and development platforms for securely storing and curating data, training and fine-tuning large-language and other AI models, and developing and delivering AI applications. Beneficiaries include Microsoft Azure and Amazon Web Services. Integration of generative AI capabilities, such as AI agents and copilots, directly into existing product offerings and customer workflows. Software vendors capitalizing on this opportunity includes ServiceNow, Inc.“