ServiceNow is a U.S.-based software company that provides cloud platforms to automate digital workflows across businesses and public organizations. Founded in 2003, the company supports operations in IT, HR, customer service, and cybersecurity through its flagship product, the Now Platform. Its mission is to make work faster and simpler by connecting people, processes, and systems in one seamless environment.
In recent years, ServiceNow has expanded its capabilities by embracing AI technologies, including its innovative Agentic AI suite. Tools like Now Assist and Agentic Workforce Management help enterprises integrate intelligent agents into daily operations for improved productivity. A strategic partnership with NVIDIA has further strengthened its role in AI-powered enterprise solutions.
ServiceNow Fiscal Q2 2025
ServiceNow (NOW) reported strong Q2 2025 results, with subscription revenue of $3.11 billion, up 22.5% year-over-year, above estimates while earnings per share came at $4.09, topping forecasts by over 14%.
Earning Highlights
ServiceNow beat its Q2 2025 targets across revenue and profit.
- Subscription revenue hit $3.11 billion, up 22.5% from last year
- Total revenue reached $3.21 billion, also up 22.5%
- Short-term contract backlog rose to $10.92 billion, up 24.5%
- Total backlog climbed to $23.9 billion, a 29% increase
- Customers spending over $20 million annually grew more than 30% year-over-year
- Repurchased $361 million in shares, with $2.6 billion still available under its buyback program.
- Partnered with AWS, NVIDIA, UKG, and Cisco to boost AI capabilities and data integration
Outlook
ServiceNow expects solid growth in Q3 2025, with subscription revenue projected between $3.26–$3.265 billion, up about 20% year-over-year.
The company anticipates a slight slowdown in short-term contract growth (cRPO), due to a large group of customers set to renew in Q4.
U.S. federal budget pressures may also affect Q3, but management believes the updated guidance reflects current trends and sets up a strong finish to the year.
Board Statements
CEO Bill McDermott emphasized the company’s continued elite execution and highlighted the growing importance of its AI platform, which is reshaping enterprise workflows through agentic AI. He described ServiceNow as uniquely positioned as a full-stack operating system for business transformation.
CFO Gina Mastantuono noted that Q2 performance beat the high end of expectations, driven by strong demand for Now Assist and CRM solutions. She confirmed the company remains on track to reach its $1 billion ACV goal by 2026, supported by a growing pipeline and expanding market opportunities
Impact on the Stock Market
ServiceNow stock rose 5% following strong Q2 2025 results that beat expectations on revenue, profit, and margin. The company reported total revenue of $3.22 billion and earnings per share of $4.09, both above forecasts.
Growth was fueled by rising demand for AI-powered solutions like Now Assist, which helped boost large deal volume and subscription revenue.
Managements upgraded full-year outlook and continued customer expansion, including over 528 clients spending more than $5 million annually, added to investor confidence and drove the surge in share price.
