ServiceNow reported strong fiscal results for the first quarter of 2025, surpassing analyst consensus estimates. The company, known for its digital workflow solutions, announced on April 23 that its adjusted earnings per share (EPS) reached $4.04, exceeding the forecasted $3.83. This performance was largely attributed to significant growth in subscription revenue. Total revenue stood at $3.09 billion, slightly above expectations, marking an 18.5% increase compared to the previous year.
The financial results highlight a successful quarter for ServiceNow, emphasizing its strategic focus on artificial intelligence (AI) and subscription-based services. The company posted an adjusted EPS of $4.04, compared to the expected $3.83 and the prior year’s $3.41, representing an 18.5% year-over-year increase. Revenue for the quarter was $3.09 billion, surpassing the estimated $3.083 billion, up from $2.6 billion in the first quarter of 2024, reflecting the same percentage increase. Subscription revenue rose by 20% to $3.03 billion, and the current remaining performance obligation (cRPO) increased by 22% to $10.31 billion, aligning closely with its strategic goals.
ServiceNow’s enterprise cloud computing platforms, which streamline and automate digital workflows, continue to offer IT service management, operational efficiency, and enhanced user experiences across enterprises. AI-driven enhancements remain a key focus, allowing the company to maintain its competitive advantage and explore new growth areas. ServiceNow has been expanding its AI capabilities and forming strategic partnerships to strengthen its services, reflecting a commitment to innovation and the evolving demands of digital transformation.
In terms of quarterly performance, ServiceNow recorded $3.005 billion in subscription revenue for Q1, slightly above the analysts’ prediction of $2.998 billion. The company’s cRPO, indicating future subscription and services revenue, grew by 22% to $10.31 billion. This progress aligns with ServiceNow’s broader strategic objectives of nurturing its subscription and AI competencies. Notable achievements during this quarter include advances in AI integration through the launch of an agentic AI service, intended to enhance service management solutions. Strategic partnerships with companies like Aptiv and Vodafone Business were instrumental in driving ServiceNow’s AI-driven transformation efforts.
The company successfully navigated external factors and geopolitical uncertainties, showcasing its robust positioning and adaptive strategies. Looking forward to the second quarter of 2025, ServiceNow provides an optimistic outlook, projecting subscription revenue between $3.03 billion and $3.035 billion, indicating 19% to 19.5% year-over-year growth. ServiceNow has also revised its full-year subscription guidance, now anticipating $12.64 billion to $12.68 billion, up from the previous forecast of $12.635 billion to $12.675 billion. The management team remains committed to fulfilling other full-year guidance metrics and intends to continue strategic initiatives and investments in AI leadership.
Going further, the company plans to focus on executing its hybrid pricing model and assessing the impact of macroeconomic conditions, including geopolitical events. ServiceNow aims to exceed $15 billion in revenue by 2026, with aspirations to reach $30 billion, supported by AI-driven workflows and strategic growth plans. Revenue and net income figures align with U.S. generally accepted accounting principles (GAAP) unless otherwise specified.
