It’s a beat and raise for ServiceNow.
Subscription revenue is now forecast at $12.78 billion to $12.80 billion for the year. That’s above prior guidance of $12.64 billion to $12.68 billion.
Wall Street is looking for signs that ServiceNow’s AI products will accelerate revenue in the coming year,s so raised guidance is a welcome development for investors in the stock.
It looks like ServiceNow is the big after-hours winner in technology tonight.
Shares have come off their highs slightly, but are still up 6.4%.
That’s much stronger gains after-hours than other companies like Alphabet, Tesla, and IBM which are all flat or down.
“ServiceNow’s outstanding second quarter results continue our long track record of elite level execution.”
“Our beat-and-raise quarter showcases the mission-critical nature of the ServiceNow AI Platform.”
– Bill McDermott
And here’s a look at how growth rates compare across various financial metrics:
| Metric | Q2 25 | Q2 24 | YoY Change |
|---|---|---|---|
| Revenue | $3.21B | $2.63B | 22.38% |
| Gross Profit | $2.49B | $2.08B | 20.05% |
| Operating Income | $358.00M | $240.00M | 49.17% |
| Net Income | $385.00M | $262.00M | 46.95% |
| Cash And Equivalents | $3.12B | $2.16B | 44.70% |
| Total Assets | $22.05B | $18.21B | 21.11% |
| Total Liabilities | $10.93B | $9.54B | 14.58% |
| Shareholders Equity | $11.09B | $8.67B | 28.01% |
| Operating Cash Flow | $716.00M | $620.00M | 15.48% |
ServiceNow reported strong financial results for Q2 2025, with total revenues reaching $3.215 billion, a 22.5% year-over-year increase.
Subscription revenues were $3.113 billion, also up 22.5% from the previous year.
The company exceeded its guidance across all topline growth and profitability metrics. Non-GAAP earnings per share were $4.13, significantly surpassing the estimated EPS of $1.70.
The company highlighted substantial growth in its customer base, with a 30% increase in customers with more than $20 million in annual contract value.
ServiceNow’s CEO, Bill McDermott, emphasized the company’s differentiation as a full-stack agentic operating system for enterprises. The company also announced several strategic partnerships and innovations in AI, data, and CRM, positioning itself for continued growth in the second half of the year.
ServiceNow earnings are out and share have immediately jumped 8%.
We will continue posting analysis.
Alphabet just reported standout earnings but we’re still waiting for ServiceNow. Once their earnings hit the wires we’ll begin posting analysis.
The closing bell has rung and we’re watching for earnings. We’ll be continuing to update across the next 45 minutes with earnings analysis.
We are a little more than 30 minutes from the bell closes trading for the day. Shares of ServiceNow are down slightly, about .18% as of 3:27 p.m. ET.
The company is underperofrming the broader market today with the Nasdaq up .51% in late trading. The downgrade we highlighted earlier is likely the leading cause for ServiceNow’s underperformance today.
As a reminder, we’ll be posting live analysis right after earnings are released. Simply stay on this page and new updates will load. We expect earnings to release shortly after 4 p.m. ET.
Plenty of analysts will be watching ServiceNow’s earnings as the company is one of the “bellwethers” for AI demand from enterprise clients. Here’s some of the figures the company announced last quarter in the AI space. Wall Street will be closely analyzing the commentary from William McDermott on demand for AI products.
Highlights from last quarter:
We’ll see if there are updates on any of these numbers when the company hosts its conference call.
Prior to earnings, ServiceNow received a downgrade from Erste Group, cutting the company from a ‘Buy’ to a ‘Hold.’
The main reason for the downgrade is ServiceNow trading at a premium valuation relative to peers.
Wall Street projects ServiceNow will deliver $16.58 in adjusted earnings in 2025. That leaves the company trading for about 58X 2025 adjusted earnings.
That’s certainly a steep price considering ServiceNow is guiding to subscription revenue growth of 19.5% (Non-GAAP). Of course, ServiceNow also has a unique position in many AI growth areas that create the premium the stock trades for relative to many of its peers.
Live coverage has ended. The full story is below.
ServiceNow (NYSE:NOW | NOW Price Prediction) reports earnings after the bell tonight.
While ServiceNow has been one of the market’s most successful stocks across the past decade, it has been an underperformer so far in 2025. Shares are down 9% year-to-date, with most the underperformance coming recently.
Since May 12th, ServiceNow shares have dropped 5.5% while the Nasdaq has gained 12%.
We’ll be updating this earnings live blog with news and analysis the moment ServiceNow’s earnings hit the wires. All you need to do is simply leave this page open and new updates will appear as they go live.
Before earnings hit, let’s look at some of the most important storylines headed into the second quarter.
The first numbers Wall Street analyzes after earnings are released is a company’s EPS and revenue for the prior quarter. Let’s look at what Wall Street expects from ServiceNow:
Second Quarter Expectations
ServiceNow will also provide guidance for the third quarter. If the company misses on any of these numbers, we’d expect its share price to drop tomorrow.
Third Quarter Guidance Expectations
ServiceNow guides to subscription revenue, CRPO, and income from operations. Given this information, Wall Street will quickly be able to see how guidance next quarter compares to their revenue and EPS expectations.
Contact [email protected] for any questions or corrections.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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