What were the key takeaways from ServiceNow's earnings call?

What factors drove the changes in ServiceNow's revenue and profit?

What were the key takeaways from ServiceNow’s earnings call?

What guidance did ServiceNow's management provide for the next earnings period?

What is the revenue and EPS growth rate for ServiceNow year over year?

What is ServiceNow's latest dividend and current dividend yield?

What is the market's earnings forecast for ServiceNow next quarter?

What is ServiceNow's gross profit margin?

- **Revenue Growth Accelerates**: 20.5% YoY to $3.299B, beating guidance with 103+ $1M deals and 12+ $10M AI deals.
- **AI Adoption Surge**: Now Assist consumption up 55x since May, on track for $500M+ ACV with 1,700 customers.
- **Margin Expansion**: Operating margin 33.5% (vs. 30% guide), raising 2025 targets to 31% op margin and 34% free cash flow.
- **Federal Resilience**: U.S. federal ACV +30% YoY, but Q4 guidance cautious on timing amid shutdown.
- **Key Innovations**: AI Control Tower adoption by 1,700 customers, 90% internal process automation, and 30%+ Now Assist price uplift.

**【CEO Summary Section】**
- Delivered 20.5% year-over-year subscription revenue growth to $3.299 billion, driven by AI product adoption and core workflow expansion.
- Highlighted 103 deals over $1 million in net new ACV, including 12 over $10 million, with Now Assist consumption growing 55x since May.
- Announced AI Control Tower adoption by 1,700 customers, with use cases like Lenovo resolving cases 35% faster and Bell deflecting 3M+ customer support calls.
- Raised 2025 guidance to $12.835B-$12.845B subscription revenue, +20.5% YoY, and operating margin target to 31%.

**【CFO Financial Commentary】**
- Generated $3.299B subscription revenue (20.5% YoY), $24.3B RPO (23% YoY), and $11.15B current RPO (20.5% YoY).
- Operating margin expanded to 33.5% (vs. 30% guidance), free cash flow margin 17.5%, with $9.7B cash and $2B remaining on buyback program.
- Raised full-year operating margin to 31% (from 30.5%) and free cash flow margin to 34% (from 32%).

**【Q&A Highlights】**
- **AI Implementation**: 100+ pre-packaged Agentic workflows reduce implementation time to weeks, with 90% of internal processes automated.
- **Federal Business**: Q3 U.S. federal ACV grew 30% YoY, but Q4 guidance includes prudence for deal timing amid government shutdown.
- **Now Assist Pricing**: Hybrid subscription/consumption model drives 30%+ price uplift, with $500M+ ACV target for 2025 (subscription-only).
- **MoveWorks Update**: Expected to close by end of Q4, adding AI talent to accelerate Zurich release innovations.
- **Security Growth**: Risk & Security business crosses $1B ACV, with AI Control Tower adoption accelerating compliance and governance.

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