ServiceNow Reports Third Quarter 2025 Financial Results; Board of Directors Authorizes Five-for-One Stock Split

ServiceNow exceeds guidance across all Q3 2025 topline growth and profitability metrics ServiceNow raises 2025 subscription revenue, operating margin, and free cash flow guidance; expects 250bps of free cash flow margin expansion year-over-year Subscription revenues of $3,299 million in Q3 2025, representing 21.5% year-over-year growth, 20.5% in constant currency Total revenues of $3,407 million in Q3 2025, representing 22% year-over-year growth, 20.5% in constant currency Current remaining performance obligations of $11.35 billion as of Q3 2025, representing 21% year-over-year growth, 20.5% in constant currency Remaining performance obligations of $24.3 billion as of Q3 2025, representing 24% year-over-year growth, 23% in constant currency ServiceNow’s Board of Directors authorizes a five-for-one split of the company’s common stock SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI platform for business transformation, today announced financial results for its third quarter ended September 30, 2025, with subscription revenues of $3,299 million in Q3 2025, representing 21.5% year-over-year growth and 20.5% in constant currency. “This outstanding Q3 performance is the clearest demonstration yet that ServiceNow is the AI platform for business transformation,” said ServiceNow Chairman and CEO Bill McDermott. “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.” As of September 30, 2025, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $11.35 billion, representing 21% year-over-year growth and 20.5% in constant currency. The company had 103 transactions over $1 million in net new annual contract value (“ACV”) in Q3, and ended the quarter with 553 customers with more than $5 million in ACV, representing 18% year-over-year growth. “Q3 was an exceptional quarter, with standout performances across the board,” said ServiceNow President and CFO Gina Mastantuono. “Now Assist, U.S. Federal, Workflow Data Fabric, and RaptorDB were all ahead of plan. These results underscore the power of the ServiceNow AI Platform and our multiple growth vectors, from core workflow expansion to the accelerating adoption of our innovative new products. Massive platform demand, combined with AI-driven efficiencies, not only fueled fantastic results but also reinforced our ability to scale with accelerating margin expansion.” ServiceNow today announced that its Board of Directors approved a five-for-one split of the Company’s common stock. The stock split is subject to shareholder approval, which the Company will seek at a Special Meeting of Shareholders scheduled to take place on December 5, 2025. Recent Business Highlights Innovation In Q3, ServiceNow unveiled AI Experience, the new user interface (UI) for enterprise AI. The context-aware, multimodal environment unites people, data, and workflows with built-in governance and security. Redefining the traditional UI, AI Experience serves as the intelligent entry point for employees to access information, delegate tasks, and collaborate with AI. With the Zurich platform release, announced in September, ServiceNow delivered breakthrough innovations that accelerate multi-agentic development and bring secure, scalable AI systems into production. The company introduced new developer tools enabling secure vibe coding with natural language to lower the barrier to application creation; built-in capabilities such as ServiceNow Vault Console and Machine Identity Console to secure sensitive data and govern integrations; and autonomous workflows powered by agentic playbooks that blend AI and human input where and when it's needed for greater control and efficiency. Global and Industry Expansion ServiceNow announced a new regional innovation hub and AI Institute in West Palm Beach, Florida, to drive AI innovation, talent development, and economic growth. This initiative is projected to create more than 850 new jobs and deliver $1.8 billion in economic impact over the next five years. ServiceNow and SENAI-SP, Latin America’s largest professional education institution, launched a statewide AI skills program to equip Brazilians with technical skills in AI, workflow automation, and low-code development. Included within ServiceNow University, the program offers trainings and certification pathways to build an AI-ready workforce. ServiceNow was named the Official Workflow Partner of the DFL Deutsche Fußball Liga (Bundesliga). Powered by the ServiceNow AI Platform, the league is modernizing its operations to improve employee satisfaction, collaboration with clubs and partners, and fan engagement across the league ecosystem. Partnerships ServiceNow and the U.S. General Services Administration (GSA) announced a landmark OneGov agreement to power AI-first modernization for a new era of government. The partnership offers a simplified licensing model to reduce complexity, drive cost savings, and enable easier adoption of the ServiceNow AI Platform, helping agencies accelerate workflow efficiencies and agentic AI transformation. In Q4, ServiceNow and NVIDIA deepened their longstanding partnership, introducing Apriel 2.0, a next-generation AI model with advanced reasoning and multimodal capabilities in a faster, smaller, more efficient footprint. Additionally, ServiceNow will integrate with NVIDIA AI Factory reference architectures to deliver out-of-the box AI agents and workflow solutions, helping organizations enhance security and customer experiences in sectors such as retail, government, and data center management. Today, ServiceNow and FedEx Dataworks announced their collaboration to build AI-powered supply chain workflows that combine FedEx Dataworks’ global logistics intelligence with the ServiceNow AI Platform’s automation and workflow capabilities. To start, FedEx Dataworks will integrate with ServiceNow procurement solutions, using actionable data to deliver real-time visibility into supply chain health and performance. Investment Today, ServiceNow announced an investment in Zaelab to accelerate CRM and AI-driven modernization for manufacturing and technology customers. The collaboration will deliver joint solutions for enhanced CPQ and digital commerce capabilities, while simultaneously allowing Zaelab to expand its CRM practice by adding 350 certified professionals to deliver ServiceNow offerings that solve customers’ CRM needs. In September, ServiceNow closed on its $750 million investment in Genesys, a global leader in AI-Powered Experience Orchestration, building on the companies’ global partnership to elevate customer and employee experiences. In Q3, ServiceNow repurchased approximately 644,000 shares of its common stock for $584 million as part of its share repurchase program(1), with the primary objective of managing the impact of dilution. Approximately $2 billion remains available for share repurchases under the program. Recognition Over the last few months, ServiceNow was recognized as a Leader across multiple Gartner® Magic Quadrant™ reports, including in the inaugural 2025 Gartner Magic Quadrant for Business Orchestration and Automation Technologies(2), the 2025 Gartner Magic Quadrant for AI Applications in IT Service Management(3), the 2025 Gartner Magic Quadrant for the CRM Customer Engagement Center(4), and a six-time Leader in the 2025 Gartner Magic Quadrant for Enterprise Low-Code Application platforms(5). Throughout the quarter, ServiceNow’s purpose-driven, unified culture was recognized with placements on Forbes America’s Best Employers for Company Culture and Fortune Best Workplaces in Technology(6) lists. The company was also honored on Glassdoor’s Best-Led Company list and Ethisphere’s World’s Most Ethical Companies list. ___________________ (1) The program does not have a fixed expiration date, may be suspended, or discontinued at any time, and does not obligate ServiceNow to acquire any amount of its common stock. The timing, manner, price, and amount of any repurchases will be determined by ServiceNow at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. (2) Gartner, Inc. Magic Quadrant for Business Orchestration and Automation Technologies, by Saikat Ray, Tushar Srivastava, Marc Kerremans, October 15, 2025. (3) Gartner, Inc., Magic Quadrant for AI Applications in IT Service Management, by Chris Matchett, Ankita Hundal, Rich Doheny, September 2, 2025. (4) Gartner, Inc., Magic Quadrant for the CRM Customer Engagement Center, by Pri Rathnayake, Drew Kraus, Francesco Vicchi, Jim Robinson, October 27, 2025. (5) Gartner, Inc., Magic Quadrant for Enterprise Low-Code Application Platforms, by Oleksandr Matvitskyy, Akash Jain, Kyle Davis, Adrian Leow, July 28, 2025. (6) From Fortune Magazine. © 2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune is a registered trademark of Fortune Media IP Limited and is used under license. Fortune Magazine and Fortune Media (USA) Corporation are not affiliated with, and do not endorse products or services of, ServiceNow. Gartner Disclaimer The Gartner content described herein, (the "Gartner Content") represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release) and the opinions expressed in the Gartner Content are subject to change without notice. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. And/or its affiliates and are used herein with permission. All rights reserved. Third Quarter 2025 GAAP and Non-GAAP Results: The following table summarizes our financial results for the third quarter 2025: Third Quarter 2025 GAAP Results Third Quarter 2025 Non-GAAP Results(1) Amount ($ millions) Year/Year Growth (%) Amount ($ millions)(3) Year/Year Growth (%) Subscription revenues $3,299 21.5% $3,267 20.5% Professional services and other revenues $108 31% $107 29.5% Total revenues $3,407 22% $3,374 20.5% Amount ($ billions) Year/Year Growth (%) Amount ($ billions)(3) Year/Year Growth (%) cRPO $11.35 21% $11.27 20.5% RPO $24.3 24% $24.1 23% Amount ($ millions) Margin (%) Amount ($ millions)(2) Margin (%)(2) Subscription gross profit $2,633 80% $2,744 83% Professional services and other gross profit $— 0.5% $12 11% Total gross profit $2,633 77.5% $2,756 81% Income from operations $572 17% $1,140 33.5% Net cash provided by operating activities $813 24% Free cash flow $592 17.5% Amount ($ millions) Earnings per Basic/Diluted Share ($) Amount ($ millions)(2) Earnings per Basic/Diluted Share ($)(2) Net income $502 $2.42 / $2.40 $1,010 $4.86 / $4.82 (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. (2) Refer to the table entitled “GAAP to Non-GAAP Reconciliation” for a reconciliation of GAAP to non-GAAP measures. (3) Non-GAAP subscription revenues and total revenues are adjusted for constant currency by excluding effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts. Professional services and other revenues, cRPO, and RPO are adjusted only for constant currency. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. Note: Numbers rounded for presentation purposes and may not foot. Financial Outlook Our guidance includes GAAP and non‑GAAP financial measures. The non‑GAAP growth rates for subscription revenues are adjusted for constant currency by excluding the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non-GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business trends. U.S. Federal agencies are currently navigating changes, from tightening budgets to evolving mission demands. The recent government shutdown may also impact deal timing in the near-term. These dynamics have been reflected in our Q4 2025 guidance. The following table summarizes our guidance for the fourth quarter 2025: Fourth Quarter 2025 GAAP Guidance Fourth Quarter 2025 Non-GAAP Guidance(1) Amount ($ millions)(3) Year/Year Growth (%)(3) Constant Currency Year/Year Growth (%) Subscription revenues $3,420 - $3,430 19.5% 17.5% - 18% cRPO 23% 19% Margin (%)(2) Income from operations 30% Amount (millions) Weighted-average shares used to compute diluted net income per share 210 (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. (2) Refer to the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. (3) Guidance for GAAP subscription revenues and GAAP subscription revenues and cRPO growth rates are based on the 30-day average of foreign exchange rates for September 2025 for entities reporting in currencies other than U.S. Dollars. The following table summarizes our guidance for the full-year 2025: Full-Year 2025 GAAP Guidance Full-Year 2025 Non-GAAP Guidance(1) Amount ($ millions)(3) Year/Year Growth (%)(3) Constant Currency Year/Year Growth (%) Subscription revenues $12,835 - $12,845 20.5% 20% Margin (%)(2) Subscription gross profit 83.5% Income from operations 31% Free cash flow 34% Amount (millions) Weighted-average shares used to compute diluted net income per share 210 (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP measures. (2) Refer to the table entitled “Reconciliation of Non-GAAP Financial Guidance” for a reconciliation of GAAP to non-GAAP measures. (3) GAAP subscription revenues and related growth rate for the future quarter included in our full-year 2025 guidance are based on the 30-day average of foreign exchange rates for September 2025 for entities reporting in currencies other than U.S. Dollars. Note: Numbers are rounded for presentation purposes and may not foot. Conference Call DetailsRead the full story here

ServiceNow Reports Third Quarter 2025 Financial Results; Board of Directors Authorizes Five-for-One Stock Split

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