ServiceNow posts Q4 and full-year 2025 results
ServiceNow highlighted a "significant beat" though evidently the market's attention was somewhat different, with the stock down more then 5% in after-hours trade.
ServiceNow (NYSE:NOW), the cloud-based automations firm, reported subscription revenues of $3.466 billion for the fourth quarter, as total Q4 revenues totalled $3.568 billion.
Full-year subscription revenues were seen at $12.883 billion, with CEO Bill McDermott highlighting what's described as a "significant beat".
It comes against a fast-moving automation space, in which a myriad of AI and agentic automation platforms are launching apace.
ServiceNow stock dropped more than 5% in after-hours trade following the quarterly earnings report.
In a separate announcement, ServiceNow said it is embedding Anthropic's Claude models into its AI platform to power application development and mission-critical workflows
“ServiceNow significantly beat Q4 expectations, accelerated net new business, and issued exceptional guidance for 2026,” ServiceNow Chairman and CEO Bill McDermott said.
The automations company, in a statement, said that its current remaining performance obligations tallied at $12.85 billion in the quarter, and its remaining performance obligations were $28.2 billion.
It reported 244 net new annual contract value transactions, of over $1 million, in the quarter in Q4 and 603 customers with more than $5 million in ACV.
“ServiceNow significantly beat Q4 expectations, accelerated net new business, and issued exceptional guidance for 2026,” ServiceNow Chairman and CEO Bill McDermott said.
Q4 net income was reported at $401 million, or $0.39 per basic share and $0.38 per diluted share; non‑GAAP net income was $959 million, or $0.92 per share.
Net cash provided by operating activities was marked at $2.238 billion, and free cash flow was $2,032 million. For the full year, net cash from operations was $5,444 million and free cash flow was $4,636 million.
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The company said it closed its acquisition of Moveworks on December 15, 2025, and announced its intent to acquire Armis and Veza, with those transactions expected to close in the second half of 2026 and the first half of 2026, respectively. It also provided guidance for Q1 2026 subscription revenues of $3,650–$3,655 million and for full-year 2026 subscription revenues of $15,530–$15,570 million.
In New York, ServiceNow stock was down 5.3% in after-hours, priced at $122.75.
The Recap
- Q4 subscription revenues were $3,466 million, up 21% year-over-year.
- Current remaining performance obligations totaled $12.85 billion, up 25%.
- The company expects full-year 2026 subscription revenues $15,530–$15,570 million.
