ServiceNow (NOW) Shares Soar 7.04% on Strong Q2 Earnings

On July 24, 2025, ServiceNow (NOW) shares surged 7.04% in pre-market trading, reflecting strong investor confidence in the company's recent financial performance and strategic initiatives.

ServiceNow reported robust financial results for the second quarter of 2025, with revenue reaching approximately $3.22 billion, surpassing analyst estimates. The company's adjusted earnings per share (EPS) for the quarter were $4.09, also exceeding expectations. This strong performance was driven by a 22.5% year-over-year increase in both total revenue and subscription revenue, highlighting the growing demand for ServiceNow's cloud-based solutions.

ServiceNow's remaining performance obligations stood at $23.9 billion at the end of the quarter, up 29% year-over-year. The company also noted a significant increase in customers with annual contract values exceeding $20 million, reflecting the growing adoption of its enterprise AI platform. Bill McDermott, chairman and CEO of ServiceNow, emphasized the mission-critical nature of the ServiceNow AI Platform, which is transforming business processes across various industries.

In addition to its financial performance, ServiceNow announced that it repurchased approximately 381,000 shares of its common stock during the quarter, totaling $361 million. The company had approximately $2.6 billion remaining on its buyback program at the end of the period, demonstrating its commitment to returning value to shareholders.

Looking ahead, ServiceNow provided guidance for the third quarter, expecting subscription revenue to range between $3.26 billion and $3.265 billion. The company also increased its full-year subscription revenue outlook to between $12.775 billion and $12.795 billion, up from its previous guidance. This upward revision reflects the company's confidence in its continued growth and market leadership.