The earnings call demonstrated strong performance across subscription revenue and AI product adoption, with significant growth in large deals and operating margins. Despite market challenges in the U.S. federal sector, the overall outlook remains positive due to robust new logo acquisition and exceptional execution.

Company Guidance -

Q3 2025

During ServiceNow's Q2 2025 earnings call, the company provided guidance for the upcoming third quarter and full year 2025, reflecting strong performance and growth expectations. For the full year, ServiceNow raised its subscription revenue guidance by $125 million at the midpoint, bringing it to a range of $12.775 billion to $12.795 billion, representing a 20% year-over-year growth. The company also expects a subscription gross margin of 83.5%, operating margin of 30.5%, and a free cash flow margin of 32%. For Q3 2025, ServiceNow anticipates subscription revenues between $3.260 billion and $3.265 billion, with a year-over-year growth rate of 20% to 20.5%, and an operating margin of 30.5%. Current Remaining Performance Obligation (cRPO) growth is projected at 18.5% year-over-year. The guidance reflects ServiceNow's strong execution and demand for its AI-driven solutions, including the Now Assist products, which have been contributing significantly to its performance.

Record Subscription Revenue Growth

Subscription revenue grew by 21.5% year-over-year in constant currency, 200 basis points above the high end of the guidance range, driven by strong execution and early on-prem renewals.

Significant Increase in Large Deals

ServiceNow closed 89 deals greater than $1 million in net new ACV, including 11 deals over $5 million. This includes notable wins with companies like ExxonMobil and Standard Chartered.

Strong AI Product Adoption

Now Assist net new ACV to date exceeded expectations, with a 50% quarter-on-quarter increase in key AI Pro Plus deal count. ITAM Now Assist net new ACV increased nearly 6x quarter-over-quarter.

Operating and Free Cash Flow Margin Growth

Operating margin was 29.5%, over 250 basis points above guidance, and free cash flow margin was 16.5%, up 300 basis points year-over-year.

Successful New Logo Acquisition

ServiceNow landed 11 deals over $1 million in net new ACV with new logos, including 2 over $5 million. Average new logo ACV grew over 100% year-over-year.

ServiceNow (NOW) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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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.