ServiceNow delivered an outstanding quarter with significant overperformance across all key metrics, robust growth in new customer engagements, and continued success with AI products. Some uncertainty remains in the U.S. federal market and regarding the timing of the Moveworks acquisition, but these are minor compared to the overall positive performance and strategic advancements.

Company Guidance -

Q3 2025

During the ServiceNow Second Quarter 2025 Earnings Conference Call, the company provided robust guidance for future quarters, reflecting strong performance metrics and growth prospects. Subscription revenue saw a year-over-year increase of 21.5% in constant currency, significantly surpassing guidance by 200 basis points. The remaining performance obligations (RPO) grew by 25.5% year-over-year in constant currency, with current RPO at $10.92 billion, also exceeding guidance by 200 basis points. Operating margin reached 29.5%, over 250 basis points above expectations, and free cash flow margin improved to 16.5%, up 300 basis points year-on-year. The company also reported 89 deals exceeding $1 million in net new annual contract value (ACV), with 11 deals over $5 million. For the full year 2025, ServiceNow raised its subscription revenue guidance to a range of $12.775 billion to $12.795 billion, expecting 20% growth year-over-year, and maintained its operating margin target at 30.5% and free cash flow margin at 32%. The guidance reflects the company's confidence in sustained demand, particularly driven by its AI capabilities and platform differentiation.

Subscription Revenue Growth

Subscription revenue growth was 21.5% in constant currency, 2 points above guidance.

CRPO Growth

CRPO growth was also 21.5% in constant currency, 2 points above guidance.

Operating Margin and Free Cash Flow

Operating margin was 29.5%, over 2.5 points above guidance. Free cash flow margin was 16.5%, up 3% year-on-year.

Significant Deal Activity

89 deals greater than $1 million in net new ACV, with 11 deals over $5 million.

AI Product Success

Now Assist net new ACV beat expectations. Key AI Pro Plus deal count was up over 50% quarter-on-quarter.

New Product Announcements

Announced Agentic Workforce Management and acquired data.world for innovative data governance.

Strong Industry Performance

Transportation and logistics delivered net new ACV over 100% year-over-year. Technology, media, and telecom grew over 70% year-over-year.

Record New Customer Engagement

Landed 11 deals over $1 million in net new ACV, including 2 over $5 million, growing average new logo ACV over 100% year-over-year.

ServiceNow (NOW) Earnings, Revenues Date & History

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NOW Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 22, 2025	2025 (Q3)	4.27 / -	3.72	―	―	―
Jul 23, 2025	2025 (Q2)	3.57 / 4.09	3.13	30.67% (+0.96)
Apr 23, 2025	2025 (Q1)	3.83 / 4.04	3.41	18.48% (+0.63)
Jan 29, 2025	2024 (Q4)	3.65 / 3.67	3.11	18.01% (+0.56)
Oct 23, 2024	2024 (Q3)	3.45 / 3.72	2.92	27.40% (+0.80)
Jul 24, 2024	2024 (Q2)	2.83 / 3.13	2.37	32.07% (+0.76)
Apr 24, 2024	2024 (Q1)	3.13 / 3.41	2.37	43.88% (+1.04)
Jan 24, 2024	2023 (Q4)	2.78 / 3.11	2.28	36.40% (+0.83)
Oct 25, 2023	2023 (Q3)	2.56 / 2.92	1.96	48.98% (+0.96)
Jul 26, 2023	2023 (Q2)	2.05 / 2.37	1.62	46.30% (+0.75)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

NOW Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 23, 2025	$956.43	$996.18	+4.16%
Apr 23, 2025	$812.70	$938.57	+15.49%
Jan 29, 2025	$1143.63	$1012.75	-11.44%
Oct 23, 2024	$907.68	$956.58	+5.39%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.