Q2 25 EPS
$4.09
BEAT +14.63%
Est. $3.57
Q2 25 Revenue
$3.22B
BEAT +2.92%
Est. $3.12B
vs S&P Since Q2 25
-69.1%
TRAILING MARKET
NOW -55.5% vs S&P +13.6%
Market Reaction
Did NOW Beat Earnings? Q2 2025 Results
ServiceNow delivered a convincing beat-and-raise second quarter, with the enterprise software giant posting non-GAAP diluted EPS of $4.09, well ahead of the $3.57 consensus estimate by 14.63%, while revenue climbed 22.4% year-over-year to $3.21 billi… Read more ServiceNow delivered a convincing beat-and-raise second quarter, with the enterprise software giant posting non-GAAP diluted EPS of $4.09, well ahead of the $3.57 consensus estimate by 14.63%, while revenue climbed 22.4% year-over-year to $3.21 billion, topping the $3.12 billion Street expectation by 2.92%. The outperformance was driven largely by accelerating AI adoption, as the company's Now Assist product exceeded net new ACV expectations and kept ServiceNow firmly on track for its $1.00 billion ACV target by 2026, cementing what CEO Bill McDermott called a "full stack agentic operating system for the enterprise." Subscription revenues, which account for 97% of total revenues, reached $3.11 billion with a 98% customer renewal rate underscoring the durability of demand. Current remaining performance obligations grew 24.5% year-over-year to $10.92 billion, signaling healthy forward momentum despite a flagged two-point cRPO headwind in Q3. Heading into the print, analysts were watching AI monetization closely, and ServiceNow delivered, raising full-year subscription revenue guidance to approximately $12.79 billion.
Key Takeaways
- • Now Assist surpassed net new ACV expectations with increasing deal volume and size quarter-over-quarter
- • 89 transactions over $1 million in net new ACV in Q2
- • 528 customers with more than $5 million in ACV, approximately 19.5% YoY growth
- • Customers with more than $20 million in ACV grew over 30% year-over-year
- • cRPO of $10.92 billion representing 24.5% YoY growth
- • RPO of $23.9 billion representing 29% YoY growth
- • Strong momentum in CRM expansion
NOW YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
NOW Revenue by Segment
With YoY comparisons, source: SEC Filings
“ServiceNow's outstanding second quarter results continue our long track record of elite level execution. Our beat-and-raise quarter showcases the mission-critical nature of the ServiceNow AI Platform. Every business process in every industry is being refactored for agentic AI. ServiceNow has never been more differentiated as a full stack agentic operating system for the enterprise.”
— Bill McDermott, Q2 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% |