Summary
ServiceNow, Inc. (NOW) reported solid financial results for the third quarter and first nine months of fiscal year 2025, demonstrating continued revenue growth and operational efficiency. Total revenues increased by 22% year-over-year for the third quarter and 21% for the first nine months, primarily driven by strong performance in subscription revenues. The company also showed significant improvements in profitability, with income from operations growing by 37% and 39% for the respective periods, and an increase in net income. Free cash flow saw a robust 27% increase year-over-year for the nine-month period, highlighting strong cash generation capabilities. The company also made strategic acquisitions and continued its share repurchase program, indicating confidence in its growth prospects and commitment to shareholder returns.
Financial Highlights
52 data points| Revenue | $3.41B |
| Cost of Revenue | $774.00M |
| Gross Profit | $2.63B |
| R&D Expenses | $750.00M |
| Operating Expenses | $2.06B |
| Operating Income | $572.00M |
| Net Income | $502.00M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 1.04B |
| Shares Outstanding (Diluted) | 1.05B |
Key Highlights
- 1Total revenues grew by 22% year-over-year to $3.41 billion in Q3 2025 and 21% year-over-year to $9.71 billion for the first nine months of 2025.
- 2Subscription revenues, the primary revenue driver, increased by 22% in Q3 and 21% in the first nine months, showcasing consistent demand for ServiceNow's core offerings.
- 3Income from operations saw a substantial increase of 37% in Q3 and 39% for the first nine months, indicating improved operational leverage and cost management.
- 4Net income rose to $502 million for Q3 and $1.35 billion for the first nine months, demonstrating enhanced profitability.
- 5Free cash flow increased by 27% to $2.60 billion for the first nine months of 2025, reflecting strong cash generation from operations.
- 6The company acquired Logik.io Inc. for $506 million to enhance its CPQ solutions and is pursuing the acquisition of Moveworks, Inc. for approximately $2.9 billion.
- 7ServiceNow repurchased $1.24 billion of its common stock in the first nine months of 2025, demonstrating a commitment to returning capital to shareholders.