ServiceNow Q2 Earnings Exceed Expectations, Raises Full-Year Guidance

ServiceNow (NOW) shares rose 3.9% after Q2 financial results surpassed analyst expectations, with revenue of $3.22 billion and adjusted EPS of $4.09. Subscription revenues increased 22.5% YoY to $3.11 billion, driven by strong AI momentum. The company raised its full-year guidance, boosting subscription revenue by $125 million. The stock has been volatile, with 12 moves greater than 5% over the last year.

Title: ServiceNow Reports Strong Q2 2025 Financial Performance, Exceeds Analyst Expectations

ServiceNow (NOW) shares rose 3.9% after the company reported its second-quarter (Q2) 2025 financial results, which surpassed analyst expectations. The company's revenue for the period reached $3.22 billion, with an adjusted earnings per share (EPS) of $4.09. Subscription revenues increased 22.5% year-over-year (YoY) to $3.11 billion, driven by strong momentum in AI and other technological advancements. ServiceNow also raised its full-year guidance, boosting subscription revenue by $125 million.

The company's stock has been volatile, with 12 moves greater than 5% over the last year, reflecting market sentiment and investor confidence in the company's growth prospects.

ServiceNow's current remaining performance obligations (cRPO) were $10.92 billion as of June 30, 2025, representing 24.5% YoY growth and 21.5% in constant currency. The company had 89 transactions over $1 million in net new annual contract value (ACV) in Q2, and ended the quarter with 528 customers with more than $5 million in ACV, representing approximately 19.5% YoY growth [1].

ServiceNow's Chairman and CEO, Bill McDermott, commented, "ServiceNow’s outstanding second quarter results continue our long track record of elite level execution. Our beat-and-raise quarter showcases the mission-critical nature of the ServiceNow AI Platform. Every business process in every industry is being refactored for agentic AI. ServiceNow has never been more differentiated as a full stack agentic operating system for the enterprise."

The company's President and CFO, Gina Mastantuono, added, "Q2 was a spectacular quarter across the board, as we significantly beat the high end of our guidance across all topline and profitability metrics. Now Assist continued to surpass net new ACV expectations, fueled by an increase in both deal volume and size quarter-over-quarter, putting us firmly on track to hit our $1 billion ACV target by 2026."

ServiceNow's Q2 2025 financial results underscore the company's strong performance and continued growth in the AI and enterprise software markets. The company's ability to exceed analyst expectations and raise its full-year guidance highlights its robust business model and market positioning.

References:
[1] https://www.servicenow.com/company/media/press-room/second-quarter-2025-financial-results.html