Overview
- Q4 revenue rose 20.5% to $3.57 billion and adjusted EPS hit $0.92, topping estimates as subscription revenue grew 21% to $3.47 billion.
- Management guided Q1 subscription revenue to $3.650–$3.655 billion, up 21.5%, and projected full‑year subscription revenue of $15.53–$15.57 billion.
- Now Assist reached $600 million in annual contract value with a target above $1 billion by end‑2026, and the AI Control Tower is positioning the platform for agentic AI orchestration.
- Remaining performance obligations climbed 26.5% to $28.2 billion and current RPO rose 25% to $12.85 billion, indicating strong backlog.
- Shares fell after the Jan. 29 report, yet Bernstein (Outperform, $219), Cantor Fitzgerald (Overweight, $200) and Stifel (Buy, $180) reaffirmed positive views, noting valuation near 6x revenue and 16x free cash flow.