ServiceNow Q4 2025 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Significant Revenue Growth: ServiceNow's Q4 subscription revenues reached $3.466 billion, reflecting a 19.5% year-over-year increase and exceeding the high end of guidance by 150 basis points, showcasing the company's robust performance and sustained growth potential in the market.
- Increased User Engagement: A 25% rise in monthly active users indicates not only heightened demand for its AI-driven products but also reinforces the company's leadership position in enterprise AI adoption, which is crucial for long-term strategic success.
- Strategic Acquisition Moves: The acquisitions of Veza and Armis create three critical layers for enterprises to operate securely in an AI-driven world, enhancing the company's capabilities in visibility and identity management, thereby laying a solid foundation for future growth.
- Confidence Boost from Buyback Plan: The announcement of a $5 billion share repurchase authorization, including an immediate $2 billion buyback, reflects management's confidence in future performance and commitment to shareholder value, which is strategically significant in maintaining investor trust.
Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 131.800
Low
172.00
Averages
222.81
High
263.00
Current: 131.800
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
