ServiceNow (NOW) Q4 2025 earnings report

ServiceNow At the top of Wall Street fourth quarter forecasts Shares fell more than 6% after the bell on Wednesday.

The company’s performance according to LSEG forecasts is as follows:

• earnings per share: 92 cents corrected, 88 cents expected
• Revenues: $3.57 billion, expected $3.53 billion.

Revenues increased 20.5% from $2.96 billion in the same period a year ago. Net income was $401 million, or 38 cents per share, up slightly from $384 million, or 37 cents per share, a year earlier.

“I hope these results continue to show that the strength of our business is truly unwavering and that we are a truly unique company in the software space,” chief financial officer Gina Mastantuono told CNBC.

The board also approved an additional $5 billion in share repurchases.

ServiceNow estimates subscription revenues will be between $3.65 billion and $3.66 billion in the first quarter and between $15.53 billion and $15.57 billion for fiscal 2026.

Enterprise software company announces acquisition of artificial intelligence company Movement studies will contribute 100 basis points to full-year and first-quarter subscription revenue growth and current remaining performance obligations growth in the first quarter, accounting for backlog.

The company is in the midst of a massive spending spree to boost its AI and security capabilities as it positions itself as an “AI control tower” for businesses.

This deal blitz has raised some concerns about whether the company may seek acquisitions to reignite growth, especially as fears grow that the software industry is losing ground to AI.

“Our acquisitions are not 100% away from organic growth,” Mastantuono said. “They represent an acceleration of that.”

He said the company is working to acquire key capabilities that will unlock value.

Last month, ServiceNow nearly closed down its acquisition of cybersecurity startup Armis for $7.75 billion to bolster its cybersecurity offering and identity security platform Veza. $3 billion Moveworks deal.

ServiceNow said subscription revenue, which makes up the bulk of sales, rose 21% from a year earlier to nearly $3.47 billion in the period, beating StreetAccount’s expectation of $3.42 billion.

Subscription revenues for fiscal 2025 increased 21% to $12.88 billion.

ServiceNow’s remaining current performance obligations in the fourth quarter increased 25% year over year to $12.85 billion.

ServiceNow also announced an expanded partnership with Anthropic to better integrate Claude models to customers. Earlier this month, ServiceNow struck a similar three-year deal with rival OpenAI.