ServiceNow (NOW) Q4 2025 Earnings
Reported Jan 28, 2026 at 4:11 PM ET · SEC Source
Q4 25 EPS
$0.92
BEAT +6.17%
Est. $0.87
Q4 25 Revenue
$3.57B
BEAT +1.10%
Est. $3.53B
vs S&P Since Q4 25
-20.7%
TRAILING MARKET
NOW -13.4% vs S&P +7.3%
Full Year 2025 Results
FY 25 EPS
$3.51
BEAT +2.87%
Est. $3.41
FY 25 Revenue
$13.28B
BEAT +0.27%
Est. $13.24B
Market Reaction
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… Read more 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 AI's impact on software 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
NOW 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, source: SEC Filings
NOW Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Bill McDermott, Q4 2025 Earnings Press Release
NOW Earnings Trends
NOW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NOW EPS Trend
Earnings per share: estimate vs actual
NOW Revenue Trend
Quarterly revenue: estimate vs actual
NOW Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 BEAT FY | $0.87 | $0.92 | +6.17% | $3.57B | +1.10% |
| FY Full Year | $3.41 | $3.51 | +2.87% | $13.28B | +0.27% |
| Q3 25 BEAT | $4.27 | $4.82 | +13.00% | $3.41B | +1.49% |
| Q2 25 BEAT | $3.57 | $4.09 | +14.63% | $3.22B | +2.92% |
| Q1 25 BEAT | $3.83 | $4.04 | +5.36% | $3.09B | +0.06% |