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Dec 31, 2025
ServiceNow Q4 2025 Earnings Report
ServiceNow reported strong fourth quarter and full-year 2025 financial results, exceeding guidance across topline growth and profitability metrics, and authorized an additional $5 billion for share repurchase.
Key Takeaways
ServiceNow delivered exceptional Q4 2025 results, surpassing expectations with subscription revenues of $3,466 million, a 21% year-over-year growth. The company also reported significant growth in current remaining performance obligations (cRPO) and authorized a substantial share repurchase program, highlighting strong business momentum and confidence in future growth.
ServiceNow exceeded guidance across all Q4 2025 topline growth and profitability metrics.
Subscription revenues reached $3,466 million in Q4 2025, marking a 21% year-over-year growth.
Current remaining performance obligations (cRPO) grew by 25% year-over-year to $12.85 billion.
The Board of Directors authorized an additional $5 billion for the share repurchase program.
Revenue by Segment
Forward Guidance
ServiceNow provided strong guidance for Q1 2026 and full-year 2026, anticipating continued growth in subscription revenues and operating margins, with a focus on AI-driven solutions and strategic acquisitions.
Positive Outlook
- Q1 2026 GAAP subscription revenue guidance of $3,650 - $3,655 million, representing 21.5% year-over-year growth.
- Q1 2026 Non-GAAP subscription revenue guidance of 18.5% - 19% constant currency growth.
- Full-year 2026 GAAP subscription revenue guidance of $15,530 - $15,570 million, representing 20.5% - 21% year-over-year growth.
- Full-year 2026 Non-GAAP operating margin guidance of 32%.
- Full-year 2026 Non-GAAP free cash flow margin guidance of 36%.
Challenges Ahead
- Q1 2026 subscription revenue growth guidance includes an approximately 150bps headwind from a mix shift of self-hosted revenue to hosted revenue.
- The company's ability to comply with evolving privacy laws and data transfer restrictions could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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