ServiceNow Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did NOW Beat Earnings? Q3 2025 Results
ServiceNow delivered a standout third quarter, posting non-GAAP diluted EPS of $4.82 against a consensus estimate of $4.27 — a 13.00% beat — while revenue climbed 21.8% year-over-year to $3.41 billion, edging past the $3.36 billion Wall Street had expected. The primary engine behind the quarter's strength was accelerating AI-driven platform adoption: Now Assist and related AI workflows helped lift subscription revenues 21.5% year-over-year and expand non-GAAP operating margin to 33.5%, up sharply from 31% a year ago. Current remaining performance obligations reached $11.35 billion, up 21% year-over-year, underscoring durable demand that <a href="https://247wallst.com/investing/2026/01/28/servicenow-earnings-preview-what-to-watch-when-now-reports-after-the-bell/">investors had closely watched</a> heading into the print. The company also announced a five-for-one stock split pending shareholder approval. Looking ahead, ServiceNow raised its full-year 2025 subscription revenue guidance to approximately $12.84 billion, representing 20.5% growth, though it cautioned that tightening federal budgets and a recent government shutdown could weigh on near-term deal timing in its Q4 outlook.
- Now Assist, U.S. Federal, Workflow Data Fabric, and RaptorDB all ahead of plan
- 103 transactions over $1 million in net new ACV in Q3
- 553 customers with more than $5 million in ACV, representing 18% YoY growth
- AI-driven efficiencies fueling accelerating margin expansion
- Non-GAAP operating margin expanded to 33.5% from 31% YoY
“This outstanding Q3 performance is the clearest demonstration yet that ServiceNow is the AI platform for business transformation. Every enterprise in every industry is focused on AI as the innovation opportunity of our generation. Leaders work with ServiceNow because they trust this proven platform as the core of their technology estate for decades to come. From autonomous workflows to AI-driven CRM, ServiceNow is putting AI to work for people, driving massive value creation for customers and shareholders.”
ServiceNow CEO, on the earnings call
Forward Guidance & Outlook
ServiceNow raised its full-year 2025 guidance across subscription revenue, operating margin, and free cash flow. Q4 2025 guidance: subscription revenues of $3,420–$3,430 million (19.5% YoY GAAP growth, 17.5–18% constant currency), cRPO growth of 23% GAAP / 19% constant currency, non-GAAP operating margin of 30%, and ~210 million diluted shares. Full-year 2025 guidance: subscription revenues of $12,835–$12,845 million (20.5% GAAP growth, 20% constant currency), non-GAAP subscription gross margin of 83.5%, non-GAAP operating margin of 31%, non-GAAP free cash flow margin of 34% (250bps expansion YoY), and ~210 million diluted shares. The company noted that U.S. Federal agencies are navigating tightening budgets and a recent government shutdown may impact near-term deal timing, which is reflected in Q4 guidance.
NOW YoY Financials
NOW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.