NOW Q3 2025 Earnings

Call Details

• Call Title: ServiceNow, Inc. Q3 2025 Earnings Call
• Date: October 29, 2025 at 9:00 PM UTC
• Management Team:
  • Darren Yip (Senior Vice President of Investor Relations and Market Insights)
  • Bill McDermott (Chairman and Chief Executive Officer)
  • Gina Mastantuono (President and Chief Financial Officer)
  • Amit Zavery (President, Chief Product Officer, and Chief Operating Officer)

Call Summary

Financial Performance

• Q3 subscription revenues were $3.299B, growing 20.5% year-over-year in constant currency.
• RPO ended Q3 at approximately $24.3B, representing 23% year-over-year constant currency growth.
• Current RPO was $11.35B, representing 20.5% year-over-year constant currency growth.
• Non-GAAP operating margin was 33.5%, which management stated was 300 basis points above guidance.
• Free cash flow margin was 17.5% for Q3, up 50 basis points year-over-year.
• Cash and investments ended the quarter at $9.7B.
• The company reported 103 deals greater than $1M in net new ACV in the quarter, including multiple deals above $10M and three deals over $20M.

Guidance

• For full-year 2025, subscription revenues were raised by $55M at the midpoint to a range of $12.835B to $12.845B, representing 20.5% year-over-year growth or 20% on a constant currency basis.
• Full-year non-GAAP operating margin guidance was raised by 50 basis points to 31.0%.
• Full-year free cash flow margin guidance was raised by 200 basis points to 34.0%.
• The company continues to expect subscription gross margin of 83.5% and GAAP diluted weighted average shares of 210M for the year.
• Q4 subscription revenues are guided to $3.42B to $3.43B, representing 19.5% year-over-year growth or 17.5% to 18% on a constant currency basis.
• Q4 CRPO is guided to 23% year-over-year growth (19% on a constant currency basis) and Q4 operating margin is guided to 30.0%.
• The guidance incorporates prudence for potential timing impacts from the U.S. government shutdown on federal deals.