ServiceNow Inc ( (NOW) ) has released its Q3 earnings. Here is a breakdown of the information ServiceNow Inc presented to its investors.
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ServiceNow Inc., a leader in AI-driven business transformation, provides innovative solutions across various industries, enhancing productivity and business outcomes through its comprehensive AI platform.
In its third quarter of 2025, ServiceNow reported strong financial results, surpassing its guidance across all key metrics. The company achieved a notable 21.5% year-over-year growth in subscription revenues, totaling $3,299 million, and a 22% increase in total revenues, reaching $3,407 million. The Board of Directors also approved a five-for-one stock split, reflecting confidence in the company’s growth trajectory.
Key highlights from the earnings report include a significant expansion in remaining performance obligations, which grew by 24% year-over-year to $24.3 billion. ServiceNow also reported a robust increase in its customer base, with 553 customers now generating more than $5 million in annual contract value. The company continues to innovate with the launch of its AI Experience interface and the Zurich platform release, which are set to enhance AI-driven workflows and secure data management.
Strategic partnerships and investments further underscore ServiceNow’s growth strategy. Collaborations with NVIDIA, FedEx Dataworks, and the U.S. General Services Administration highlight the company’s commitment to expanding its AI capabilities and market reach. Additionally, investments in companies like Zaelab and Genesys aim to bolster ServiceNow’s CRM and AI-driven solutions.
Looking ahead, ServiceNow’s management remains optimistic about the company’s future, with raised guidance for subscription revenue, operating margin, and free cash flow for the full year 2025. The company’s strategic initiatives and strong financial performance position it well for continued growth and innovation in the AI sector.