ServiceNow (NOW) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 results exceeded expectations, with 21% subscription revenue growth, accelerated net new ACV, and strong performance across all workflow businesses.

• Maintained high renewal rates and expanded large customer relationships, with over 600 customers exceeding $5M in annual contract value.

• Strategic acquisitions (Moveworks, Veza, Armis) and expanded partnerships (Microsoft, OpenAI, Anthropic, NTT DATA) are set to enhance AI, security, and identity governance capabilities.

• Announced an incremental $5 billion share repurchase authorization, including a $2 billion accelerated share repurchase.

• Continued leadership in digital transformation and AI-driven enterprise workflows, serving over 8,800 global customers, including 85% of the Fortune 500.

Financial highlights

• Q4 2025 subscription revenues were $3,466M, up 21% year-over-year in constant currency, exceeding guidance by 150 basis points.

• Full-year 2025 subscription revenues totaled $12,883M, up 21% year-over-year in constant currency.

• Q4 free cash flow was $2,032M (57% margin); full-year free cash flow was $4,636M (35% margin), both up significantly year-over-year.

• Remaining performance obligations (RPO) at year-end were $28.2B, up 26.5% year-over-year; current RPO was $12.85B, up 25%.

• Q4 and full-year non-GAAP operating margin was 31%.

Outlook and guidance

• FY 2026 subscription revenue guidance: $15,530M–$15,570M, up 20.5–21% year-over-year (constant currency), including 1% from Moveworks.

• Q1 2026 subscription revenue guidance: $3,650M–$3,655M, up 21.5% year-over-year (constant currency).

• FY 2026 non-GAAP operating margin expected at 32%, free cash flow margin at 36%, and subscription gross margin at 82%.

• Guidance includes headwinds from revenue mix shift and contributions from recent acquisitions.

• CRPO growth for Q1 expected at 20% year-over-year.