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ServiceNow
🇺🇸 NYSE:NOW
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•
Mar 31

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.

Total Revenue
$3.09B
Previous year: $2.6B
+18.6%
EPS
$4.04
Previous year: $3.41
+18.5%
Customers with ACV > $1M
72
Customers with ACV > $5M
508
Current RPO
$10.3B
Gross Profit
$2.44B
Previous year: $2.08B
+17.0%
Cash and Equivalents
$3.37B
Previous year: $2.06B
+63.9%
Free Cash Flow
$1.48B
Previous year: $1.23B
+20.6%
Total Assets
$21B
Previous year: $17.5B
+19.5%

ServiceNow

ServiceNow

ServiceNow 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

Company Overview

Full financial data and analysis

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