ServiceNow Reports Robust Q2 2025 Financial Results Highlighting AI Platform Leadership and Strong Growth
ServiceNow (NYSE: NOW), a leading AI platform for business transformation, announced its second quarter 2025 financial results, demonstrating exceptional growth and operational excellence. The company reported subscription revenues of \(3.113 billion, marking a 22.5% year-over-year increase (21.5% in constant currency), and total revenues of \)3.215 billion, also up 22.5% year-over-year. These results significantly exceeded the company’s guidance across all topline growth and profitability metrics, underscoring ServiceNow’s dominant position in the enterprise AI software market.
Key Financial Highlights for Q2 2025: - Subscription revenues: \(3.113 billion, up 22.5% year-over-year - Total revenues: \)3.215 billion, up 22.5% year-over-year - Current remaining performance obligations (cRPO): \(10.92 billion, up 24.5% year-over-year - Remaining performance obligations (RPO): \)23.9 billion, up 29% year-over-year - Customers with more than \(20 million in annual contract value (ACV) grew over 30% year-over-year - Net income: \)385 million, up 47% year-over-year - Operating income: \(358 million, up 49% year-over-year - Free cash flow: \)535 million, up 16.5% year-over-year
ServiceNow’s Chairman and CEO Bill McDermott emphasized the company’s elite execution and the mission-critical nature of its AI platform, stating, “Every business process in every industry is being refactored for agentic AI. ServiceNow has never been more differentiated as a full stack agentic operating system for the enterprise.”
Innovation and Strategic Initiatives: ServiceNow showcased major innovations at its annual Knowledge event, including the launch of AI Control Tower and AI Agent Fabric, which provide centralized governance and orchestration of AI agents across enterprise functions. The company also introduced Workflow Data Network to unify data and enhance AI-powered decision-making, and reimagined CRM for the AI era with new AI Agents and expanded CPQ capabilities.
The company announced its Autonomous IT vision powered by agentic AI, aiming for zero downtime and greater operational resilience. Additionally, ServiceNow launched ServiceNow University to equip individuals and teams with essential digital skills for an AI-driven world.
Partnerships and Acquisitions: ServiceNow strengthened its AI capabilities through partnerships with AWS, NVIDIA, UKG, and Cisco, integrating advanced AI models and solutions to enhance enterprise data intelligence, security, and workforce management. The acquisition of data.world further enhances ServiceNow’s AI platform with powerful data catalog and governance capabilities.
Global Expansion and Industry Impact: ServiceNow is expanding its footprint with initiatives like partnering with CapZone Impact Investments to modernize U.S. naval shipbuilding facilities and collaborating with Ferrari to power real-time race operations. The launch of the ServiceNow Protected Platform Singapore supports AI innovation and data security for government and regulated sectors.
Financial Outlook: ServiceNow projects continued growth with Q3 2025 subscription revenues expected between \(3.26 billion and \)3.265 billion, representing approximately 20% year-over-year growth. The company anticipates a slight headwind in cRPO growth in Q3 due to a large customer cohort renewal but expects this to normalize in Q4 2025.
Conclusion: ServiceNow’s Q2 2025 earnings report highlights its leadership in AI-driven enterprise software, robust financial performance, and strategic investments in innovation and partnerships. The company’s strong revenue growth, expanding customer base, and forward-looking AI initiatives position it well for sustained success in the rapidly evolving technology landscape.
For detailed financial data and the full report, visit the source document.
Tags: NOW, ServiceNow, Q2 2025, AI Platform Innovation, Enterprise Software Growth, Strategic Partnerships