Loading...
•
Sep 30
ServiceNow Q3 2025 Earnings Report
ServiceNow reported strong Q3 2025 results, exceeding guidance across revenue and profitability metrics.
Key Takeaways
ServiceNow delivered a robust quarter with $3.41 billion in revenue, solid EPS growth, and net income of $502 million. The company also announced a five-for-one stock split, reflecting confidence in its growth trajectory.
Total revenue reached $3.41 billion, exceeding expectations.
GAAP EPS came in at $2.40; Non-GAAP EPS was $4.82.
Net income rose to $502 million with strong operating performance.
Board authorized a five-for-one stock split pending shareholder approval.
ServiceNow
ServiceNow
ServiceNow Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProf. services & other Revenue
CapyFin.com Forward Guidance
ServiceNow raised full-year guidance on subscription revenue, operating margin, and free cash flow despite macroeconomic uncertainties and potential delays in federal deals.
Positive Outlook
- Raised full-year subscription revenue guidance.
- Expects 250bps free cash flow margin expansion YoY.
- Q4 subscription revenue forecast at $3.42–$3.43 billion.
- Q4 GAAP operating margin expected at 14%; non-GAAP at 30%.
- Confidence in AI platform fueling demand across products.
Challenges Ahead
- Federal government shutdown may impact near-term deal timing.
- Tightening government budgets cited as a risk factor.
- Potential delays in U.S. federal contract signings.
- Volatility in FX rates could affect reported revenue.
- Ongoing macroeconomic uncertainty remains a headwind.
Revenue & Expenses
Visualization of income flow from segment revenue to net income