By Denny Jacob


ServiceNow Inc. shares rose 13% to $415.27, extending Wednesday's after-hours trading rally after the company forecast subscription revenue growth.

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% year-over-year increase. The company forecast 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 are maintaining our investments in growth hires as the opportunity in front of us remains enormous," Chief Financial Officer Gina Mastantuono said.

On Thursday, Morgan Stanley cut its target on ServiceNow's 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 a share from $430, while Mizuho raised its target to $500 a share from $480.


Write to Denny Jacob at denny.jacob@wsj.com


(END) Dow Jones Newswires

10-27-22 1145ET