ServiceNow (NOW) Q2 2025 Financial Results Summary

# ServiceNow (NOW) Q2 2025 Financial Results Summary

**Release Date: July 23, 2025**

ServiceNow (NYSE: NOW) reported strong financial results for its second quarter of 2025, showcasing significant growth across key metrics. Below is a summary of the quarterly performance and notable highlights:

### Financial Performance
– **Subscription Revenues**
– $3,113 million in Q2 2025
– Year-over-Year Growth: **22.5%**
– Constant Currency Growth: **21.5%**

– **Total Revenues**
– $3,215 million in Q2 2025
– Year-over-Year Growth: **22.5%**
– Constant Currency Growth: **21.5%**

– **Current Remaining Performance Obligations (cRPO)**
– $10.92 billion as of Q2 2025
– Year-over-Year Growth: **24.5%**
– Constant Currency Growth: **21.5%**

– **Remaining Performance Obligations (RPO)**
– $23.9 billion as of Q2 2025
– Year-over-Year Growth: **29%**
– Constant Currency Growth: **25.5%**

– **Customer Metrics**
– Over 528 customers with more than $5 million in Annual Contract Value (ACV), a growth of **19.5%** year-over-year.
– Over **30%** growth in customers with more than $20 million in ACV.

### Operational Highlights
– ServiceNow reported 89 transactions over $1 million in net new ACV for the quarter.
– The company is on track to achieve its goal of $1 billion in ACV by 2026.

### Dividend Declaration and Share Repurchase
– **Share Repurchase Program:**
– Approximately 381,000 shares repurchased for $361 million.
– Remaining authorization for repurchases stands at approximately $2.6 billion of the initial $4.5 billion.
– **No quarterly dividend was declared for Q2 2025.**

### Innovations and Partnerships
– The annual Knowledge event in May 2025 doubled attendance year-over-year, leading to the introduction of several innovative products, including:
– **AI Control Tower** and **AI Agent Fabric** for centralized AI governance.
– **Workflow Data Network** for improved data governance.
– **Core Business Suite**, unifying various business functions into one AI-powered platform.

– Notable partnerships established:
– Collaboration with **AWS** for integrated data solutions.
– Innovative AI agents in partnership with **NVIDIA**.
– Integration with **UKG** for enhancing HR solutions.

– Acquired **data.world** to improve data governance and agent understanding.

### Recognition
– ServiceNow was named a leader in several key industry assessments, including:
– **The Forrester Wave™: Low-Code Platforms for Professional Developers, Q2 2025.**
– **IDC MarketScape: Worldwide Business Automation Platforms 2025 Vendor Assessment.**
– Achieved a spot on the **Fortune 500** list for the third consecutive year.

### Financial Metrics
– **Net income** for Q2 2025 was $385 million, with a net income per share (diluted) of **$1.84**.
– **Cash Flow:**
– Net cash provided by operating activities: **$716 million**, marking a **22.5%** increase year-over-year.
– Free cash flow recorded at **$535 million**, representing a **16.5%** increase.
– **Gross Profit:**
– $2,491 million total gross profit, with a gross margin of **77.5%**.

### Outlook
– Guidance for Q3 2025:
– Anticipated subscription revenues: **$3,260 – $3,265 million** (20% – 20.5% growth).
– cRPO growth projected at approximately **18.5%**.
– Expecting temporary headwinds in Q3 due to a large customer cohort up for renewal in Q4.

This report indicates that ServiceNow is maintaining its strong growth momentum and focusing on enhancing its market positioning through innovation and strategic partnerships.

(1) Includes stock-based compensation as follows: