Core Insights - ServiceNow (NOW) reported fourth-quarter 2025 adjusted earnings of 92 cents per share, exceeding the Zacks Consensus Estimate by 5.75% and reflecting a 26% year-over-year increase. Revenues reached $3.57 billion, surpassing the consensus mark by 1.25% and increasing by 20.7% year over year [1][8]. Revenue Performance - Subscription revenues improved by 20.9% year over year to $3.47 billion, while on a constant currency basis, revenues increased by 19.5% to $3.41 billion. Professional services and other revenues rose by 12.1% year over year to $102 million, with a constant currency increase of 11% to $101 million [2]. - The current remaining performance obligations (cRPO) stood at $12.85 billion, marking a 25% year-over-year increase on a reported basis and a 21% increase on a constant currency basis. Remaining performance obligations on a constant currency basis rose 22.5% year over year to $28.2 billion [3]. Client Growth and Product Performance - The company recorded 244 transactions exceeding $1 million in net new annual contract value (ACV) in Q4 2025, representing nearly 40% year-over-year growth. ServiceNow ended the quarter with 603 customers with over $5 million in ACV, reflecting approximately 20% year-over-year growth [4]. - AI-powered products such as Now Assist and Raptor significantly contributed to the growth in net new ACV, with RaptorDB Pro tripling its net new ACV year over year. The number of workflows and transactions grew over 33%, increasing from $60 billion to $80 billion and from $4.8 trillion to $6.4 trillion, respectively [5][6]. Operating Metrics - In Q4 2025, the non-GAAP gross margin was 80.3%, down 160 basis points year over year. The subscription gross margin was 82.7%, also contracting by 160 basis points year over year. Professional services reported a gross loss of $2 million compared to a gross income of $7 million in the previous year [7]. - Operating expenses as a percentage of revenues decreased by 180 basis points year over year to 64.2%, while the non-GAAP operating margin expanded by 140 basis points year over year to 30.9% [9]. Cash Flow and Share Repurchase - As of December 31, 2025, the company had cash and cash equivalents and marketable securities totaling $6.28 billion, up from $5.41 billion as of September 30, 2025. Cash from operations was $2.24 billion, compared to $813 million in the previous quarter, with free cash flow reaching $2.03 billion, up from $592 million in the prior quarter [10]. - The company repurchased 3.6 million shares in Q4 2025 and announced a new share repurchase authorization worth $5 billion, along with plans for a $2 billion accelerated share repurchase program [11]. Guidance for 2026 - For 2026, ServiceNow expects subscription revenues to be between $15.53 billion and $15.57 billion, indicating a rise of 20.5% to 21% from 2025. The guidance includes a 1% contribution from Moveworks. The non-GAAP subscription gross margin is anticipated to be 82%, with a non-GAAP operating margin of 32% and a free cash flow margin expected to be 36% [12]. - For Q1 2026, subscription revenues are projected to be between $3.65 billion and $3.67 billion, suggesting year-over-year growth of 21.5% on a GAAP basis [13][14].

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 ...

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 ...

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 - ServiceNow (NOW) is set to announce its fourth-quarter 2025 results on January 28, with expected revenues of $3.52 billion, reflecting a 19.2% year-over-year growth [1] - The consensus estimate for earnings per share is 87 cents, indicating a 19.2% increase from the previous year [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter 2025 subscription revenues is $3.43 billion, suggesting a year-over-year growth of 19.5% on a GAAP basis [6] - Subscription revenues are projected to be between $3.42 billion and $3.43 billion, with constant currency growth estimated at 17.5% to 18% [6] Performance Trends - ServiceNow has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 9.79% [4] - The company’s stock has declined by 41.7% over the past year, which is better than the Zacks Computer & Technology sector's return of 28.4% and the Computers – IT Services industry's decline of 22.6% [12] Strategic Developments - ServiceNow's AI products are expected to exceed $0.5 billion in Annual Contract Value (ACV) in 2025, with a target of reaching $1 billion in 2026 [18] - The acquisition of Veza enhances ServiceNow's security portfolio by focusing on identity security, which is crucial for managing access to sensitive data [18] - The $7.75 billion acquisition of Armis will strengthen ServiceNow's offerings in cyber exposure management and is expected to drive greater AI adoption [19] Partnerships and Integrations - ServiceNow has expanded its partnerships with major companies like NVIDIA and Microsoft, enhancing its AI capabilities and integration with enterprise workflows [10] - The collaboration with NVIDIA has led to the development of Apriel 2.0, which aims to improve AI reasoning and capabilities for enterprises [8] Valuation Insights - ServiceNow's current valuation is considered stretched, with a forward price/sales ratio of 8.73X compared to the sector's 7.32X [15] - The company holds a Zacks Rank 3 (Hold), suggesting that investors may want to wait for a more favorable entry point [20]

Group 1 - ServiceNow, Inc. is considered one of the oversold fundamentally strong stocks to buy currently [1] - Piper Sandler analyst Rob Owens reduced the price target for ServiceNow's stock to $200 from $230 while maintaining an "Overweight" rating, indicating cautious optimism for 2026 [1] - Citi maintained a "Buy" rating on ServiceNow with a price objective of $250.60, highlighting the positive industrial logic behind the acquisition of Armis, which adds predictive security features to its AI Control Tower offering [2] Group 2 - The acquisition of Armis is noted as ServiceNow's largest deal, although it is not considered transformative [2] - ServiceNow offers a cloud-based solution for digital workflows, but there are opinions that certain AI stocks may present greater upside potential with less downside risk [3]

Core Insights - ServiceNow (NOW) is actively expanding its portfolio through multiple acquisitions, including Logik.io, data.world, and Moveworks, enhancing its capabilities in AI-powered solutions and enterprise data governance [1] - The company has crossed a significant milestone with its Security and Risk business, achieving over $1 billion in annual contract value in Q3 2025 [2] - The acquisition of Veza strengthens NOW's security offerings by providing advanced identity governance capabilities, which will integrate with ServiceNow's existing workflows and AI systems [3] - ServiceNow's acquisition of Armis for $7.75 billion enhances its security portfolio, particularly in cyber exposure management, and is expected to drive AI adoption [4] - The company has raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a 20% growth on a non-GAAP constant currency basis [5] Financial Performance - ServiceNow's subscription revenue growth is projected to slow to 20% in 2025, down from 23% in 2024, due to tightening budgets in U.S. federal agencies [6] - The company's share price has decreased by 27.4% over the past year, underperforming the broader Zacks Computer and Technology sector, which returned 26.2% [11] - The forward 12-month price/sales ratio for ServiceNow is 12.01X, significantly higher than the sector average of 7.31X, indicating that the stock may be overvalued [14] Competitive Landscape - ServiceNow faces strong competition from Atlassian and Salesforce, both of which are enhancing their offerings in enterprise collaboration and AI capabilities [7][9] - Atlassian is focusing on subscription-based solutions and has seen significant enterprise penetration, with over 500 customers spending more than $1 million annually [8] - Salesforce reported a 10% year-over-year increase in subscription and support revenues, driven by its AI products, indicating robust growth in its cloud business [10]

Core Insights - Salesforce (CRM) and ServiceNow (NOW) are leading enterprise cloud software companies that assist large organizations in modernizing operations and automating workflows [1][2] Salesforce Overview - Salesforce maintains a leading position in the customer relationship management market and is expanding its ecosystem to include artificial intelligence (AI), data, and collaboration [3] - The company has integrated generative AI into its offerings, significantly enhancing automation and decision-making capabilities [4] - In Q3 of fiscal 2026, Salesforce's AI-driven products generated $1.4 billion in recurring revenues, marking a 114% year-over-year increase, with Agentforce alone contributing $540 million, up 330% year over year [5] - However, Salesforce is experiencing a slowdown in sales growth, with revenues increasing by only 8.7% year over year in the first nine months of fiscal 2026, reflecting cautious enterprise spending [6][7] ServiceNow Overview - ServiceNow is benefiting from increased adoption of its workflows, which support automation across various business functions, driving efficiency for customers [8] - The company closed 103 transactions exceeding $1 million in net new annual contract value (ACV) in Q3 2025, with a total of 553 customers contributing over $5 million in ACV [9][10] - ServiceNow's AI strategy includes a comprehensive approach to enterprise adoption, exemplified by its AI Control Tower, which helps monitor AI agents across systems [10][12] - The federal business segment of ServiceNow grew over 30% year over year in Q3 2025, indicating strength in a challenging market [13] Growth Outlook Comparison - ServiceNow's growth profile appears stronger, with projected revenue and earnings per share (EPS) growth of 20.5% and 24.5% for 2025, and 18.1% and 16.8% for 2026 [14] - In contrast, Salesforce's fiscal 2026 estimates indicate a revenue growth of 9.5% and an EPS increase of 14.6%, with projections of 10.8% and 10.5% for fiscal 2027 [17] Valuation and Performance - Over the past six months, Salesforce shares have decreased by 2.4%, while ServiceNow shares have fallen by 25.2% [21] - Salesforce trades at a forward price-to-sales (P/S) multiple of 5.48, significantly lower than ServiceNow's 10.23 [23] Conclusion - While Salesforce is a stable and profitable company, its growth has slowed. ServiceNow demonstrates stronger growth, better execution, and clearer demand trends, giving it an edge as an investment despite a higher valuation [25]

Citi likes the “industrial logic” of ServiceNow’s (NOW) acquisition of Armis. The deal adds predictive security features to the company’s AI Control Tower offering, the analyst tells investors in a research note. Citi, however, says the deal is not “transformative,” despite being ServiceNow’s largest ever. It believes the company can continue posting 20% organic subscription growth and keeps a Buy rating on the shares with a $250.60 price target Claim 70% Off TipRanks This Holiday Season Published first ...

Core Insights - ServiceNow, Inc. (NYSE:NOW) is recognized as one of the 12 Best Long Term US Stocks to Buy Now [1] - BTIG has initiated coverage of ServiceNow with a Buy rating and a price target of $1,000 [2] Company Developments - ServiceNow's AI platform has evolved significantly since the launch of Now Assist two years ago, transitioning from a simple AI feature to a comprehensive system where humans and AI collaborate [3] - The introduction of an AI Control Tower for oversight and governance is a key development, alongside a partnership with Microsoft to implement agent-based AI workflows across enterprises [3] Financial Projections - BTIG's optimistic outlook for ServiceNow assumes the company will maintain performance above the Rule of 50, projecting revenue growth in the high teens and free cash flow growth in the mid-20% range [3] Acquisition News - ServiceNow is reportedly in advanced discussions to acquire cybersecurity startup Armis, which was last valued at $6.1 billion, with the potential deal reaching around $7 billion, marking ServiceNow's largest acquisition to date [4] - Armis specializes in securing and managing internet-connected devices, addressing cyber risks for organizations [5]