Tesla's fourth quarter real, they're just crossing the wire. Let's get those numbers. Tesla Q4 just EPS50s.It looks like consensus was closer to 45 cents. So, we got a beat there. Uh Q4 revenue clocking in at 24.90% billion.Estimate was 25.11% billion. Uh Q4 gross margins, there it is, 20.1%, the estimate was 17.1%. Q4 free cash flow 1.42% 42 billion was closer to 1.59% billion.Let's get your take on this, Adam, because this is another one you own and the stock's popping about 4%. >> Love it. As it should.U ...

Core Viewpoint - ServiceNow reported better-than-expected quarterly performance and sales guidance, but investor anxiety regarding potential disruption from artificial intelligence (AI) continues to weigh on its stock price, which fell approximately 6% in after-hours trading [1]. Financial Performance - In the recently concluded fourth quarter, ServiceNow's subscription revenue grew by 21% to $3.47 billion, and adjusted earnings per share were $0.92, both exceeding Wall Street expectations [1]. - The number of customers with annual contract values exceeding $5 million increased from 553 to 603, indicating steady expansion of its large customer base [1]. - The company expects subscription revenue for the current quarter to be around $3.65 billion, above analyst forecasts, and the current remaining performance obligations (cRPO) are projected to grow nearly 23% this quarter, also surpassing expectations [1]. Market Sentiment - Despite the positive financial results, the stock price decline reflects deep-seated market concerns about the long-term impact of technological disruption on traditional software leaders [2][6]. - Analysts have noted a significant divergence in valuation logic within the software industry, contributing to the unexpected stock price drop despite strong earnings and guidance [6]. AI Strategy - ServiceNow's CEO Bill McDermott defended the company's AI strategy, emphasizing that ServiceNow is not just an application vendor with added AI features but a key platform for enterprises to implement AI in operations [4]. - The company's main generative AI product, Now Assist, has exceeded expectations, with annual contract value surpassing $600 million by the end of December [4]. - To enhance its AI capabilities, ServiceNow is allowing customers to use most major AI models within its tools and has expanded its relationship with Anthropic PBC for greater access to its Claude model, alongside a three-year agreement with OpenAI [4]. Strategic Expansion - In addition to organic growth, ServiceNow is pursuing expansion through significant acquisitions, including a $7.75 billion acquisition of cybersecurity startup Armis, expected to close in the second half of the year [5]. - The CEO denied speculation that the acquisition was driven by necessity, stating it is aimed at entering new markets, and indicated that there are no other large market gaps to fill post-acquisition [5]. - The company's board announced an additional $5 billion stock repurchase plan, primarily to manage dilution effects, following an initial repurchase plan announced in May 2023 [5].

AI and Automation - ServiceNow's AI Platform facilitates seamless workflows and digital transformation across organizations, enhancing collaboration and productivity[10]. - The company emphasizes the importance of AI in modernizing workflows, with organizations prioritizing AI-powered automation to improve productivity and manage risks[11]. - ServiceNow's platform architecture allows for the integration of AI-enhanced workflows without disrupting existing technology infrastructures, providing a competitive edge in the market[15]. - The Now Assist AI tools enable organizations to boost productivity by offering a range of AI capabilities, including language models and custom AI agents, tailored to specific needs[20]. - AI agents for IT Service Management automate incident triage and provide intelligent resolution recommendations, allowing IT staff to focus on higher-value activities[38]. - Now Assist and AI agents for SOM automate lead qualification and issue resolution, increasing productivity and reducing sales process completion time[56]. - The company is focused on incorporating AI technology into its offerings, which is seen as a key driver for future growth despite associated operational and regulatory challenges[135]. Workflow and Efficiency - The platform's data fabric supports real-time connections to external data sources, enhancing workflow efficiency and delivering context-aware insights[21]. - ServiceNow's acquisition of Moveworks strengthens its enterprise workflow automation capabilities, improving service request handling and information retrieval[22]. - The company's CRM and Industry products streamline end-to-end customer service workflows, significantly reducing response and resolution times, saving employees tens of thousands of hours annually[49]. - Core Business products improve efficiency by automating repetitive HR tasks, significantly reducing HR case volume and resolving over 50% of new cases within the same day[61][62]. - ServiceNow's technology products help organizations optimize IT operations, reduce downtime, and drive down costs, ultimately improving employee and customer experiences[37]. Market Strategy and Growth - The company aims to become the defining AI enterprise software company of the 21st century, guided by its core values and commitment to customer experience[105]. - The company maintains a global partner ecosystem to enhance market reach and co-innovation, including relationships with major technology providers like AWS, Google, and Microsoft[90]. - The company’s marketing strategy includes digital advertising, trade shows, and user conferences to increase market penetration and expand into new geographies[88]. - The company’s growth strategy includes expanding offerings into new and adjacent industries while complying with relevant regulations[133]. - Sales outside of North America represented 37% of total revenues for the years ended December 31, 2025 and 2024[132]. Research and Development - Significant investments in research and development are expected to continue, aimed at expanding platform capabilities and advancing AI and machine intelligence technologies[100]. - The company has over 2,000 issued U.S. and foreign patents and over 580 pending patent applications as of December 31, 2025, indicating a strong focus on intellectual property[96]. Employee and Talent Management - As of December 31, 2025, the company employed 29,187 full-time employees, with 14,601 in the United States and 14,586 internationally[114]. - The company has a total rewards program that includes an annual cash bonus plan and a broad-based discretionary equity incentive program to attract and retain employees[112]. - The company faces intense competition for talent, particularly in technology roles, which could impact its ability to achieve revenue growth[164]. - The company’s ability to attract and retain employees may be adversely affected by failure to meet corporate sustainability goals[180]. Cybersecurity and Risk Management - The company has established comprehensive cybersecurity risk management policies and practices, integrating them into its overall risk management program[204]. - Significant financial and personnel resources have been devoted to cybersecurity, with ongoing investments planned to enhance data security infrastructure[203]. - The company conducts annual cybersecurity risk assessments, utilizing both internal and external information to prioritize security initiatives[206]. - Regular training is provided to employees on cybersecurity topics, including phishing and insider threats, to enhance awareness and response capabilities[211]. - The Board and Audit Committee oversee cybersecurity risk management, receiving regular updates on incidents and risk assessments[214]. - Cybersecurity threats are a growing concern, with increased reliance on third-party providers introducing new risks to business operations[155]. - The company has identified vulnerabilities in its products and services, and delays in developing effective patches could expose it to security risks[156]. - An actual or perceived security breach could lead to significant operational and financial consequences, including loss of sales and reputational damage[161]. - The company has implemented controls for third-party risk management, assessing cybersecurity threats associated with service providers[210]. - Independent cyber maturity assessments were conducted in 2023, 2024, and 2025 to evaluate controls against the NIST Cybersecurity Framework[212]. Financial Performance and Challenges - The company expects a decline in revenue growth rate over the long term due to increasing competition and market saturation[185]. - The effective tax rate may be adversely affected by changes in tax laws, which could materially impact financial results[186]. - The company is subject to ongoing tax audits globally, which may result in significant tax liabilities if positions are challenged[189]. - The company may incur significant implementation costs if customer product implementations are delayed or unsuccessful[179]. - The complexity of government procurement processes may lead to increased expenses and delays in contract awards, impacting financial performance[143]. - The company’s stock price is likely to remain volatile, influenced by various external factors including market conditions and company performance[197]. Legal and Compliance Risks - The company acknowledges that its business model may be impacted by global trends and laws governing AI usage, such as the EU AI Act[137]. - The company faces potential legal and ethical challenges related to AI, including risks of copyright infringement and reputational harm, which could negatively impact customer trust and adoption of AI products[138]. - The use of open-source software poses risks that could harm the company's ability to sell products and services, potentially leading to litigation[178]. - The company may face penalties and sanctions if it fails to comply with global trade laws, which could adversely affect its business operations[149]. Operational Challenges - The company has made substantial investments to support sales to government entities, but the procurement processes are lengthy and may encounter delays, impacting revenue[142]. - The company has seen increased complexity in customer deals, leading to longer sales cycles and greater competition, which may divert resources from other sales opportunities[150]. - The company is expanding its business in heavily regulated industries, which may impose stringent compliance requirements that could restrict business growth[148]. - The company relies on third-party information systems, and delays in improving these systems could negatively impact operations and customer support[170]. - Disruptions or defects in services could lead to substantial liability and harm the company's reputation, potentially resulting in lost revenues[169]. - Delays in product releases or defects may hinder customer adoption and satisfaction, adversely affecting future sales[165].

ServiceNow (NOW) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.84%. A quarter ago, it was expected that this maker of software that automates companies' technology operations would post earnings of $0.84 per share when it actually produced earnings of $0.96, delivering a surprise ...

Core Viewpoint - ServiceNow's fourth-quarter profits and revenues exceeded Wall Street expectations, driven by strong demand for artificial intelligence software, although the company's stock fell approximately 3% in after-hours trading [1]. Group 1: Financial Performance - The company reported adjusted earnings per share of $0.92, surpassing the average analyst expectation of $0.89 [3]. - Quarterly revenue increased to $3.57 billion, exceeding the expected $3.53 billion [3]. Group 2: AI Demand and Integration - There is strong demand for ServiceNow's AI products as enterprises invest in automation workflows, productivity enhancement, and management of complex IT operations [4]. - The company is integrating generative AI into its platform amid increasing competition from new autonomous AI agents [5]. - ServiceNow is deepening partnerships with leading AI developers, including Anthropic and OpenAI, to enhance its offerings [6]. Group 3: Strategic Initiatives - The company announced an additional $5 billion authorization for its share repurchase program and plans to execute a $2 billion accelerated buyback in the near term [7]. - CEO Bill McDermott stated that the collaboration with Anthropic aims to transform intelligence into action for large enterprises through AI-native workflows [8].

ServiceNow (NYSE:NOW) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Company ParticipantsAmit Zavery - President, Chief Product Officer, and COOBill McDermott - Chairman and CEODarren Yip - SVP of Investor Relations and Market InsightsGina Mastantuono - President and CFOKeith Weiss - Managing DirectorPatrick Walravens - Managing DirectorSamad Samana - Managing DirectorConference Call ParticipantsAlex Zukin - Managing Director and Senior AnalystBrian Schwartz - Managing Director and Senior AnalystGabriel ...

Financial Data and Key Metrics Changes - Q4 subscription revenues reached $3.466 billion, growing 19.5% year-over-year in constant currency, exceeding guidance by 150 basis points [31] - Free cash flow margin for the full year 2025 was 35%, up 350 basis points year-over-year, and total free cash flow was $4.6 billion, up 34% year-over-year [38] - Operating margin was 31%, 100 basis points above guidance, driven by top-line outperformance and operational efficiencies [37] Business Line Data and Key Metrics Changes - Net new ACV growth accelerated both quarter-over-quarter and year-over-year, with 244 deals greater than $1 million in net new ACV closed in Q4 [33] - Emerging product areas, including Now Assist, Workflow Data Fabric, Raptor, and CPQ, all outperformed in Q4 [31] - Now Assist surpassed $600 million in ACV, tracking well towards a $1 billion-plus target for 2026 [36] Market Data and Key Metrics Changes - Transportation and logistics led growth with net new ACV growing over 80% year-over-year, followed by business and consumer services at over 70% [32] - The public sector, including federal and state/local, showed significant growth, with global government business up 80% year-over-year [60][61] - The number of customers contributing $20 million or more in ACV rose over 30% year-over-year [34] Company Strategy and Development Direction - The company aims to be the AI-defining enterprise software company of the 21st century, focusing on integrating AI into workflows for business reinvention [14] - ServiceNow's strategy includes opportunistic M&A to expand into a larger total addressable market (TAM), now beyond $600 billion [12] - The company emphasizes organic growth, having achieved significant milestones without relying on M&A for revenue [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting that customers are looking for platforms that deliver positive ROI and simplify operations [48][49] - The company anticipates 20% subscription revenue growth for 2026, with a strong pipeline and increasing customer demand for integrated AI solutions [10][39] - Management highlighted the importance of AI in driving efficiencies and improving operational resilience across customer deployments [36] Other Important Information - The company announced a $5 billion share repurchase authorization, with an immediate $2 billion accelerated share repurchase program [14][39] - Monthly active users grew 25%, indicating strong engagement with the platform [9] - The company is integrating new acquisitions, Armis and Veza, into its existing platform to enhance security and operational capabilities [74] Q&A Session Questions and Answers Question: What are the tailwinds and headwinds in the demand environment? - Management noted that while there are legacy systems that burden companies, there is a strong demand for platforms that deliver cross-functional AI capabilities, leading to a robust pipeline [48][49] Question: How did the federal business perform in Q4? - Despite the government shutdown, the federal business saw significant deals and a strong pipeline, with public sector growth expected to continue into 2026 [60][61] Question: What is the outlook for gross margins? - Management indicated that while there are temporary headwinds due to strategic moves towards hyperscalers, overall margins are expected to improve as these deals scale [65]

ServiceNow (NYSE:NOW) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Speaker2Thank you for standing by. At this time, I would like to welcome everyone to the Q4 and full year 2025 ServiceNow earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withd ...

Core Insights - Software stocks have experienced significant declines recently, raising concerns about the impact of artificial intelligence on traditional companies in the sector [1] - There is a prevailing uncertainty regarding the performance of chip companies, which are integral to the software industry's growth and innovation [1] Group 1: Software Industry - The recent downturn in software stocks reflects skepticism about the role of artificial intelligence in benefiting or harming established players [1] - The market is questioning the sustainability of growth in the software sector amid evolving technological trends [1] Group 2: Chip Companies - Chip companies are facing scrutiny as their performance is closely tied to the software industry's future [1] - The overall sentiment in the market indicates a cautious outlook for chip manufacturers, which could impact their stock performance [1]

© 2025 ServiceNow, Inc. All Rights Reserved. © 202 6 ServiceNow, Inc. All Rights Reserved. Investor Presentation Fourth Quarter 2025 Safe Harbor and other information This presentation contains "forward ‐looking" statements that are based on our management's beliefs and assumptions and on inf ormation currently available to management. Forward ‐looking statements include information concerning our possible or assumed strategy, future operations, financing plans, operating mod el, financial position, future ...