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ServiceNow (CH:4S0)
:4S0
Earnings Data
Report Date
Jul 23, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
2.92Last Year’s EPS
2.56Same Quarter Last Year
Strong Buy
Based on 34 Analysts Ratings
Earnings Call Summary
Earnings Call Date:Apr 23, 2025
|% Change Since: ―
|Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted strong financial performance with significant growth in subscription revenue, CRPO, and margins. The company also showed impressive gains in AI adoption and public sector engagements. However, macroeconomic and geopolitical uncertainties were acknowledged as potential risks. The sentiment is influenced positively by the raised guidance and robust growth metrics.Company Guidance
During the ServiceNow Q1 2025 earnings call, the company reported robust financial results and provided optimistic guidance for the remainder of the year. Subscription revenue grew by 20% year-over-year in constant currency, exceeding the high end of their guidance, while the current remaining performance obligation (CRPO) increased by 22% year-over-year, 150 basis points above expectations. Operating margin was 31%, with free cash flow margin reaching 48%, surpassing the rule of 50. The company secured 72 deals worth over a million in net new annual contract value (ACV), including 9 deals over five million. The number of customers billing more than five million in ACV rose to over 500, up from 425 the previous year. ServiceNow raised its full-year subscription revenue guidance to $12.64-$12.68 billion, representing 18.5% to 19% year-over-year growth. For Q2, the company anticipates subscription revenues between $3.030 billion and $3.035 billion, with a CRPO growth of 19.5% and an operating margin of 27%. The company emphasized its strategic focus on AI and highlighted the successful integration of AI into its operations, demonstrating significant operational efficiencies and positioning ServiceNow as a leader in the enterprise AI market.Subscription Revenue Growth
Subscription revenue grew 20% year over year in constant currency, slightly above the high end of our guidance range.
CRPO Growth
Current remaining performance obligations (CRPO) grew 22% year over year in constant currency, 150 basis points above guidance.
Operating and Free Cash Flow Margins
Operating margin was 31%, about 100 basis points above guidance, and free cash flow margin was 48%.
Large Deals Increase
Closed 72 deals greater than a million in net new ACV, up from 63 a year ago.
AI Adoption and Innovation
Pro Plus deals more than quadrupled year over year, with strong growth in AI-driven products like Now Assist.
Public Sector Growth
US public sector grew over 30% year over year with significant new deals.
Manufacturing and Healthcare Growth
Manufacturing net new ACV grew over 100% year over year, and healthcare and life sciences grew over 70%.
Strong Balance Sheet
Ended the quarter with $10.9 billion in cash and investments.
Raised Guidance
Raised the subscription revenue guidance for full year 2025.
CH:4S0 Earnings History
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
CH:4S0 Earnings-Related Price Changes
No data currently available
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.
FAQ
When does ServiceNow (CH:4S0) report earnings?
ServiceNow (CH:4S0) is schdueled to report earning on Jul 23, 2025, TBA Not Confirmed.
What is ServiceNow (CH:4S0) earnings time?
ServiceNow (CH:4S0) earnings time is at Jul 23, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of ServiceNow stock?
The P/E ratio of ServiceNow is N/A.
What is CH:4S0 EPS forecast?
CH:4S0 EPS forecast for the fiscal quarter 2025 (Q2) is 2.92.
