Core Insights - ServiceNow reported third-quarter earnings and revenue that exceeded consensus estimates, with earnings per share rising 29% to $4.82 and revenue climbing 22% to $3.407 billion [1][2] - The company announced a 5-for-1 stock split, which may enhance liquidity and attract more investors [1] - ServiceNow's subscription revenue increased by over 21% to $3.299 billion, surpassing analyst expectations [2] Financial Performance - Earnings per share were expected to be $4.26, while actual results showed a significant increase to $4.82 [2] - Revenue for the quarter was projected at $3.355 billion, but ServiceNow reported $3.407 billion [1][2] - Current remaining performance obligations (CRPO) rose 21% to $11.35 billion, exceeding the projected $11.089 billion [3] Growth Metrics - The company secured 103 transactions over $1 million in net new annual contract value during Q3, indicating strong demand [4] - ServiceNow ended the quarter with 553 customers having more than $5 million in annual contract value, reflecting an 18% year-over-year growth [4] - For the upcoming quarter, ServiceNow forecasts subscription revenue of $3.420 billion, slightly above estimates of $3.408 billion, and expects CRPO growth of 23% [5] Market Position and Strategy - ServiceNow's stock rose over 3% to $946.77 in extended trading, despite a prior 12% decline due to concerns over its federal government business [6] - The company is expanding its software offerings beyond its core business into areas like human resources and customer service management [7] - ServiceNow is competing with major software peers like Salesforce, particularly in the realm of autonomous AI solutions [8] Technical Ratings - ServiceNow holds an IBD Composite Rating of 88 out of a best-possible 99, indicating strong growth potential [9] - The stock has an Accumulation/Distribution Rating of B-, suggesting moderate institutional buying activity [9]