Overview

* ServiceNow ( NOW ) Q3 total revenue beats analyst expectations, growing 22% yr/yr

* Adjusted EPS for Q3 exceeds analyst expectations

* Company announces five-for-one stock split, subject to shareholder approval

Outlook

* ServiceNow expects Q4 2025 subscription revenues of $3.42 bln to $3.43 bln

* ServiceNow ( NOW ) forecasts full-year 2025 subscription revenues of $12.835 bln to $12.845 bln

* Company anticipates 250bps expansion in free cash flow margin year-over-year

Result Drivers

* AI PLATFORM DEMAND - Co attributes strong Q3 results to high demand for its AI platform, including new products like AI Experience and Zurich platform release

* PARTNERSHIPS AND INVESTMENTS - Strategic partnerships with NVIDIA and FedEx Dataworks, and investments in AI capabilities, supported growth

* SUBSCRIPTION REVENUE GROWTH - Subscription revenues rose 21.5% yr/yr, driven by AI-driven efficiencies and product adoption

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $3.40 $3.35

Revenue bln bln (34

Analysts

)

Q3 Beat $4.82 $4.26

ADJUSTED (34

EPS Analysts

)

Q3 EPS $2.40

Q3 Net $502 mln

Income

Q3 $3.29

Subscrip bln

tion

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 44 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for ServiceNow Inc ( NOW ) is $1,172.50, about 20% above its October 28 closing price of $937.91

* The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 57 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)