ServiceNow reported strong Q4 2025 results, exceeding expectations with accelerated revenue growth and significant profitability improvements. The company highlighted robust performance across its subscription services and strong growth in key metrics like cRPO and ACV, underscoring its strategic positioning in the AI-driven enterprise market.
Subscription revenues grew 21% year-over-year to $3,466 million in Q4 2025, with constant currency growth at 19.5%.
positiveTotal revenues grew 20.5% year-over-year to $3,568 million in Q4 2025.
positiveCurrent remaining performance obligations (cRPO) grew 25% year-over-year to $12.85 billion, indicating strong future revenue potential.
positiveNet new ACV for Now Assist more than doubled year-over-year, demonstrating strong adoption of AI solutions.
positiveThe company announced an additional $5 billion share repurchase program authorization.
positiveWhile GAAP operating margin was 12.5%, non-GAAP operating margin was 31%, indicating significant non-cash expenses like stock-based compensation impacting reported profitability.
attentionProfessional services and other gross loss was $(15) million in Q4 2025, with a margin of (13.5)%, indicating weakness in this segment.
attentionThe company's Q1 2026 subscription revenue growth guidance includes an approximately 150bps headwind from a mix shift of self-hosted revenue to hosted revenue.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Subscription | N/A | — | — | — | +19.5% |
Professional services and other | N/A | — | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
ServiceNow significantly beat Q4 expectations, accelerated net new business, and issued exceptional guidance for 2026.
We had substantial growth in licensed users, workflows, and transactions on our platform.
With our consistent Rule of 55+ profile, there is no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.