ServiceNow Q3 2025 Earnings Analysis

Here’s a summary of the ServiceNow third-quarter 2025 ⁤financial results, based on the provided text:

Key Highlights:

* Earnings per Share (EPS): $4.82 adjusted vs. $4.27 expected.
* revenue: $3.41 billion vs. $3.35 billion expected.
* ‍ Subscription Revenue: $3.3 billion (vs. $3.26 billion expected), representing 22% year-over-year growth.
* full-Year Guidance (Subscription Revenue): ⁣ Raised to ⁢$12.84 – $12.85 billion (previously $12.78 – ‍$12.80 billion).
* Stock split: A five-for-one stock split has been approved, effective in early December, to increase accessibility for retail investors.
* ⁤ AI Growth: AI business is projected to surpass $500 million in annual contract value this year, with a goal of $1 billion by 2026.
* Net Income: $502 million, or $2.40 per share (up from $432 million,or $2.07 per⁤ share in Q3 2024).
* ⁤ ⁢ remaining Performance Obligations: $11.35 billion.
* Stock Performance: shares rose 4% after ‍the bell, but ⁣are down about⁢ 13% year-to-date.
* Government Impact: Q4 guidance accounts for U.S. government uncertainty, but the company ⁤sees potential benefit from ‍the government’s focus on cost efficiency and modernization. ServiceNow’s U.S.federal business grew over 30% in Q3.

Overall: ServiceNow reported strong third-quarter results, exceeding expectations‍ for both earnings and revenue. The company is benefiting from the growing demand for AI solutions and has raised its full-year guidance. The stock split is ⁢intended to broaden investor participation.