Companies /Technology

ServiceNow Inc

NYSE: NOW Software - Application
$141.26
▼ $4.33 (−2.97%) today
Markets closed · 9:31am ET

Q4 2025 Earnings

Reported Jan 28, 2026, 4:11pm ET · SEC source
$0.92
Beat +6.17%
EPS · est. $0.87
$3.6B
Beat +1.10%
Revenue · est. $3.5B
−1.1%
Trailing market
NOW vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Jan 28Jan 29report 4:11pm ETearnings−0.5%−7.1%
−10%−5%0+5%Jan 28Jan 29earnings−0.5%−7.1%
NOW −7.1%S&P 500 −0.5%
−10%−5%0+5%Jan 28Jan 29report 4:11pm ETearnings−1.0%−7.1%
−10%−5%0+5%Jan 28Jan 29earnings−1.0%−7.1%
NOW −7.1%NASDAQ −1.0%
−16%−8%0+8%Jan 27Feb 5report 4:11pm ETearnings−3.2%−18.0%
−16%−8%0+8%Jan 27Feb 5earnings−3.2%−18.0%
NOW −18.0%S&P 500 −3.2%
−16%−8%0+8%Jan 27Feb 5report 4:11pm ETearnings−7.0%−18.0%
−16%−8%0+8%Jan 27Feb 5earnings−7.0%−18.0%
NOW −18.0%NASDAQ −7.0%
−9.94%
Day of report
+0.24%
Next session
−12.08%
One week
−3.03%
30 days

S&P 500 over the same 30 days: −1.98%.

Did NOW Beat Earnings? Q4 2025 Results

ServiceNow closed out fiscal 2025 on a high note, posting Q4 earnings per share of $0.92 against a consensus estimate of $0.89 — a 3.37% beat — while revenue of $3.57 billion edged past the $3.53 billion Wall Street expectation and grew 20.7% year-over-year, underscoring the durability of the company's enterprise software platform amid a broader debate over <a href="https://247wallst.com/investing/2026/01/28/servicenow-earnings-preview-what-to-watch-when-now-reports-after-the-bell/">AI's impact on software</a> demand. The standout driver was the explosive momentum in Now Assist, the company's generative AI suite, where net new annual contract value more than doubled year-over-year and contributed to 244 transactions exceeding $1 million in net new ACV — nearly 40% growth from a year ago. Non-GAAP operating margin widened to 31% from 29.5%, while current remaining performance obligations swelled 25% to $12.85 billion, providing strong revenue visibility. Looking ahead, ServiceNow guided full-year 2026 subscription revenues of $15.53 billion to $15.57 billion, reflecting 20.5% to 21% growth, with non-GAAP operating margin expected at 32%.

Key Takeaways
  • Subscription revenue growth of 21% YoY driven by strong platform adoption
  • 244 transactions over $1 million in net new ACV, nearly 40% YoY growth
  • 603 customers with more than $5 million in ACV, approximately 20% YoY growth
  • Now Assist net new ACV more than doubled year-over-year
  • Current remaining performance obligations grew 25% YoY to $12.85 billion
  • Non-GAAP operating margin expanded to 31% from 29.5% YoY
  • Non-GAAP free cash flow margin of 57% in Q4

“ServiceNow significantly beat Q4 expectations, accelerated net new business, and issued exceptional guidance for 2026. We had substantial growth in licensed users, workflows, and transactions on our platform. With our consistent Rule of 55+ profile, there is no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow. We are building the AI control tower for business reinvention so enterprises can operate securely in an agentic AI world.”

ServiceNow CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2026, ServiceNow guided subscription revenues of $3,650-$3,655 million (21.5% YoY GAAP growth, 18.5%-19% constant currency), cRPO growth of 22.5% (20% constant currency), and non-GAAP operating margin of 31.5%. Q1 guidance includes an approximately 150bps headwind from self-hosted to hosted revenue mix shift and approximately 100bps contribution from Moveworks. For full-year 2026, the company guided subscription revenues of $15,530-$15,570 million (20.5%-21% GAAP growth, 19.5%-20% constant currency), non-GAAP subscription gross margin of 82%, non-GAAP operating margin of 32%, and non-GAAP free cash flow margin of 36%. Weighted-average diluted shares are expected at approximately 1.05 billion for both Q1 and full-year 2026.

NOW YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$1.0B$2.0B$3.0B$3.0B$3.6BRevenue$2.3B$2.7BGross Profit$374.0M$443.0MOperating Income$384.0M$401.0MNet Income
$0$1.0B$2.0B$3.0BRevenueGross ProfitOperating IncomeNet Income

NOW Revenue by Segment

Subscription$3.5B+21.0%
Professional services and other$102.0M+13.0%

Figures from SEC filings and company reports. Not investment advice.