SANTA CLARA, Calif. — May 1, 2026 ServiceNow Q4 earnings $3.57B revenue 25% cRPO growth
ServiceNow Inc. (NOW) delivered robust financial results for Q4 FY2025, reporting $3.57 billion in revenue, a 20.66% year-over-year increase, and earnings per share (EPS) of $0.92, surpassing the expected $0.89.
Financial Performance and Guidance
ServiceNow’s Q4 performance was marked by significant growth across key metrics. The company generated $2 billion in free cash flow, achieving a 57% free cash flow margin. Current remaining performance obligation (cRPO) grew by 25%, reflecting strong future revenue visibility.
Management provided optimistic guidance for FY2026, projecting subscription revenue between $15.53 billion and $15.57 billion, with a non-GAAP operating margin of 32%. This outlook underscores confidence in sustained growth, driven by increasing demand for enterprise AI solutions.
AI and Enterprise Growth
CEO Bill McDermott emphasized ServiceNow’s leadership in AI, stating, "no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow." The company’s Now Assist platform saw net new annual contract value (ACV) more than double, highlighting its traction in the AI space.
ServiceNow closed 244 deals worth over $1 million in net new ACV, a nearly 40% increase year-over-year. Additionally, the company now serves 603 customers generating more than $5 million in ACV, demonstrating its ability to secure large-scale enterprise contracts.