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Mar 31, 2025
ServiceNow Q1 2025 Earnings Report
ServiceNow posted strong Q1 2025 results driven by AI platform momentum.
Key Takeaways
ServiceNow delivered a strong first quarter with over $3 billion in subscription revenues, record free cash flow, and impressive growth in high-value customer contracts.
Revenue by Segment
Forward Guidance
ServiceNow expects continued growth in Q2 2025, supported by AI momentum, strong subscription demand, and a robust customer base.
Positive Outlook
- Subscription revenues expected between $3.03B–$3.035B
- 19%–19.5% YoY subscription revenue growth forecast
- Guidance includes favorable FX impact
- Continued expansion of AI-powered offerings
- Strong execution cited in Q1 as a foundation for Q2
Challenges Ahead
- Only partial FX tailwinds flowed through to full-year guidance
- Geopolitical risks factored into cautious outlook
- Potential for macroeconomic headwinds
- Increased competitive intensity in AI and CRM
- Stock repurchases reduce capital flexibility
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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