Overview

• ServiceNow reported adjusted earnings per share of $4.09 and revenue of $3.22 billion, surpassing analyst estimates of $3.57 and $3.12 billion.
• Subscription revenue climbed 22.5% to $3.11 billion with a 30% increase in customers generating over $20 million in annual recurring revenue.
• Current remaining performance obligations rose nearly 25% to $10.92 billion and the company expects a two-percentage-point drag on CRPO in the third quarter due to seasonality and contract renewal timing.
• Full-year subscription revenue guidance was raised to a range of $12.775 billion to $12.795 billion on strong demand for agentic AI capabilities.
• ServiceNow cautioned that budget changes at U.S. federal agencies could affect results given one government customer accounted for 11% of revenue last year.