ServiceNow stock has fallen 12.8% so far in 2025 while the Nasdaq rose 22%.
ServiceNow posts strong Q3 results with 29.6% earnings growth, a 21.7% revenue jump, and a 5-for-1 stock split approval.
ServiceNow, Inc. ( NOW ) Q3 2025 Earnings Call October 29, 2025 5:00 PM EDT Company Participants Darren Yip - Head of Investor Relations William McDermott - Chairman & CEO Gina Mastantuono - President & CFO Amit Zavery - President, Chief Product Officer & COO Conference Call Participants Kasthuri Rangan - Goldman Sachs Group, Inc., Research Division Samad Samana - Jefferies LLC, Research Division Aleksandr Zukin - Wolfe Research, LLC Tyler Radke - Citigroup Inc., Research Division Michael Turrin - Wells Fargo Securities, LLC, Research Division S. Kirk Materne - Evercore ISI Institutional Equities, Research Division Peter Weed - Sanford C.
The headline numbers for ServiceNow (NOW) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
ServiceNow CEO Bill McDermott pushed back against the idea that artificial intelligence technology will make enterprise software redundant in a Wednesday interview with CNBC's Jim Cramer. "We realize the world needs access to the great hyperscalers, and so we integrated with all three of them.
ServiceNow (NOW) came out with quarterly earnings of $4.82 per share, beating the Zacks Consensus Estimate of $4.21 per share. This compares to earnings of $3.72 per share a year ago.
ServiceNow topped third-quarter estimates and lifted its guidance as it benefits from the AI boom. The enterprise software firm also authorized a 5-for-1 stock split to make shares more accessible to retail investors.
NOW's AI-powered workflows, strong partnerships and steady growth give it an edge over FIG's newer design tools.
ServiceNow (NOW) is positioned as a defensive tech play, with strong fundamentals and a maturing SaaS profile supporting a Buy rating at ~$900. NOW's AI-driven growth rebounded to 22% YoY, with robust recurring revenues, high renewal rates, and expanding AI capabilities fueling optimism. Margins are improving, with free cash flow in the 30% range and operating margins expected to reach 15%, supporting continued R&D and AI investment.
NOW's workflow momentum, AI-driven partnerships and upbeat earnings outlook could offset the stock's steep YTD decline.
Despite many tech and artificial intelligence (AI)-driven stocks surging in 2025, ServiceNow NYSE: NOW is a high-profile name that has failed to impress. As of the Oct. 1 close, shares have provided a return of -14%, and are down 22% from their 52-week high.
Zacks.com users have recently been watching ServiceNow (NOW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.