Summary
ServiceNow, Inc. (NOW) reported robust financial results for the second quarter and first half of 2025, demonstrating continued strong growth and operational efficiency. Total revenues grew by 22% year-over-year to $3.215 billion for the quarter, with subscription revenues, the primary driver, increasing by 22%. This growth was fueled by new and existing customer acquisitions. The company also saw a healthy increase in its customer base, with the number of customers with an Annual Contract Value (ACV) over $5 million growing significantly year-over-year. Profitability metrics remained strong, with income from operations increasing by 49% for the quarter to $358 million. The company's commitment to innovation and expansion was evident in its strategic acquisitions, including Logik.io Inc. and the announced acquisition of data.world, Inc., further solidifying its AI capabilities and market position. ServiceNow also continued its capital return program through share repurchases, indicating confidence in its financial health and future prospects. The company's strong free cash flow generation further underscores its operational strength and ability to invest in growth while returning value to shareholders.
Financial Highlights
52 data points| Revenue | $3.21B |
| Cost of Revenue | $724.00M |
| Gross Profit | $2.49B |
| R&D Expenses | $734.00M |
| Operating Expenses | $2.13B |
| Operating Income | $358.00M |
| Net Income | $385.00M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 1.04B |
| Shares Outstanding (Diluted) | 1.05B |
Key Highlights
- 1Total revenues increased by 22% to $3.215 billion in Q2 2025, driven by a 22% rise in subscription revenues.
- 2Income from operations grew by 49% year-over-year to $358 million in Q2 2025.
- 3Remaining Performance Obligations (RPO) reached $23.9 billion as of June 30, 2025, a 29% increase year-over-year, indicating strong future revenue visibility.
- 4The number of customers with ACV greater than $5 million increased to 528 as of June 30, 2025, up from 442 in the prior year.
- 5Free cash flow grew by 27% to $2.012 billion for the first six months of 2025.
- 6ServiceNow completed the acquisition of Logik.io Inc. for $506 million, enhancing its AI-powered CPQ capabilities, and announced the acquisition of data.world, Inc. to bolster its AI platform.
- 7The company repurchased $361 million of its common stock during the second quarter of 2025.