ServiceNow (NOW) Reports Strong Q2 Earnings - Stock Surges
After Hours: $1,024.61 â–² +68.18 (+7.13%)
Reported: July 23, 2025 | Quarter Ended: June 30, 2025
🔹 Key Financials (Non-GAAP)
| Metric | Result | YoY Change |
|---|---|---|
| Subscription Revenue | $3.11B | +22.5% |
| Current RPO (cRPO) | $10.92B | +24.5% |
| Total RPO | $23.9B | +29% |
| Operating Margin | 29.5% | +200bps |
| Free Cash Flow Margin | 16.5% | â–¼ YoY |
| Net Income | $854M | +31% |
| EPS (Diluted) | $4.09 | vs. $3.13 YoY |
🔸 Q3 & FY25 Guidance
Q3 2025
- Subscription Revenue: $3.26B–$3.265B (+20–20.5% YoY)
- Operating Margin: ~30.5%
- cRPO Growth: ~18.5%
FY 2025
- Subscription Revenue: $12.775B–$12.795B (+20% YoY)
- Operating Margin: 30.5%
- Free Cash Flow Margin: 32%
📌 Business Highlights
- 98% renewal rate (unchanged for 5 quarters)
- 528 customers with ACV over $5M (↑16% YoY)
- Technology workflows contributed 56% of new ACV
- Serving over 85% of the Fortune 500