Q1 25 EPS
$4.04
BEAT +5.36%
Est. $3.83
Q1 25 Revenue
$3.09B
BEAT +0.06%
Est. $3.09B
vs S&P Since Q1 25
-81.1%
TRAILING MARKET
NOW -49.3% vs S&P +31.8%
Market Reaction
Did NOW Beat Earnings? Q1 2025 Results
ServiceNow posted a convincing first-quarter 2025 beat that sent shares up roughly 7% in after-hours trading, as investor concerns about government spending cuts gave way to results that exceeded expectations on both the top and bottom lines. The ent… Read more ServiceNow posted a convincing first-quarter 2025 beat that sent shares up roughly 7% in after-hours trading, as investor concerns about government spending cuts gave way to results that exceeded expectations on both the top and bottom lines. The enterprise software company reported earnings per share of $4.04, clearing the $3.83 consensus by 5.36%, while revenue of $3.09 billion grew 18.6% year-over-year and edged just ahead of estimates. The outperformance was anchored by the company's enterprise AI platform strategy, subscription revenues climbed 19% year-over-year, and current remaining performance obligations reached $10.31 billion, representing 22% growth that beat the company's own guidance by 250 basis points. Non-GAAP operating margin expanded to 31%, with management crediting internal AI-driven efficiencies for keeping expenses in check. For those watching ServiceNow's forward outlook, the company guided full-year 2025 subscription revenues of $12.64 billion to $12.68 billion, reflecting 18.5% to 19% growth, though management held back some of the Q1 upside to buffer against lingering geopolitical uncertainty.
Key Takeaways
- • Enterprise AI platform positioning driving strong demand
- • Now Assist and broader net new ACV outperformance vs. internal goals
- • Internal use of AI driving meaningful opex efficiencies
- • 508 customers with more than $5M in ACV, up approximately 20% YoY
- • 72 transactions over $1M in net new ACV in Q1
- • cRPO exceeded guidance by 250 bps
NOW YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
NOW Revenue by Segment
With YoY comparisons, source: SEC Filings
“ServiceNow's position as the platinum standard for enterprise-grade AI drove these outstanding first quarter results. Our platform is delivering real business transformation to empower CEOs with speed and agility to lead through this fast-changing environment. ServiceNow is meeting the moment, driving immediate value creation for customers and shareholders.”
— Bill McDermott, Q1 2025 Earnings Press Release
NOW Earnings Trends
NOW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NOW EPS Trend
Earnings per share: estimate vs actual
NOW Revenue Trend
Quarterly revenue: estimate vs actual
NOW Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | — | — | — | — |
| Q4 25 BEAT FY | $0.89 | $0.92 | +3.37% | $3.57B | — |
| FY Full Year | $3.41 | $3.51 | +2.87% | $13.28B | +0.27% |
| Q3 25 BEAT | $4.27 | $4.82 | +13.00% | $3.41B | +1.49% |
| Q2 25 BEAT | $3.57 | $4.09 | +14.63% | $3.22B | +2.92% |
| Q1 25 BEAT | $3.83 | $4.04 | +5.36% | $3.09B | +0.06% |