Core Insights - ServiceNow reported strong Q2 2025 earnings, with adjusted earnings of $4.09 per share, exceeding estimates by 15.54% and showing a year-over-year increase of 30.7% [2] - Revenues reached $3.22 billion, surpassing consensus by 3.02% and reflecting a 22.4% year-over-year growth [2] - Subscription revenues grew by 22.5% year-over-year to $3.11 billion, while professional services revenues increased by 20% to $102 million [3] Financial Performance - The current remaining performance obligations (cRPO) stood at $10.65 billion, up 21.5% year-over-year [4] - ServiceNow had 89 transactions exceeding $1 million in net new annual contract value (ACV) during Q2, with a 19.5% increase in customers with over $5 million in ACV [5] - Non-GAAP gross margin was 81%, down 160 basis points year-over-year, while non-GAAP operating margin expanded to 29.7% [6] AI Innovations and Strategic Developments - The company launched AI Control Tower and AI Agent Fabric, enhancing AI capabilities for enterprise transformation [7] - Introduction of the Core Business Suite integrated various operations into a single AI-powered platform [8] - Strategic partnerships with AWS and NVIDIA strengthened AI capabilities and introduced advanced data integration solutions [9][10] Balance Sheet and Cash Flow - As of June 30, 2025, cash and cash equivalents totaled $6.13 billion, with long-term investments at $4.66 billion [11] - Cash from operations was $716 million, and free cash flow decreased to $535 million [11] - The company repurchased approximately 381,000 shares for $361 million, with $2.6 billion available for future repurchases [12] Guidance - For FY 2025, subscription revenues are expected to be between $12.775 billion and $12.795 billion, indicating a 20% rise from 2024 [13] - Q3 2025 subscription revenues are projected between $3.26 billion and $3.265 billion, suggesting year-over-year growth of 20%-20.5% [14]