ServiceNow (NOW) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 results exceeded expectations, with strong subscription revenue, accelerated net new ACV growth, and robust operating and free cash flow margins.

• AI-driven products (Now Assist, Workflow Data Fabric, Raptor, CPQ) outperformed, with Now Assist surpassing $600 million in ACV and major growth in $1M+ deals.

• Maintained high renewal rates and expanded large customer relationships, with over 600 customers exceeding $5M in annual contract value.

• Closed strategic acquisitions (Moveworks) and announced plans to acquire Veza and Armis, expanding AI security and governance capabilities.

• Expanded partnerships with Microsoft, OpenAI, Anthropic, NTT DATA, and others to deepen AI integration and market reach.

Financial highlights

• Q4 2025 subscription revenues: $3,466M, up 21% year-over-year in constant currency; full-year 2025 subscription revenues: $12,883M, up 21%.

• RPO at year-end: $28.2B, up 26.5% year-over-year; current RPO: $12.85B, up 25%.

• Q4 non-GAAP operating margin: 31%; free cash flow margin: 57%. Full-year non-GAAP operating margin: 31%; free cash flow margin: 35%.

• Q4 free cash flow: $2,032M; full-year free cash flow: $4,636M.

• 244 deals over $1M in NNACV in Q4; 603 customers with >$5M ACV.

Outlook and guidance

• FY 2026 subscription revenue guidance: $15,530M–$15,570M, up 20.5–21% (constant currency), including 1% from Moveworks.

• Q1 2026 subscription revenue guidance: $3,650M–$3,655M, up 21.5% year-over-year (constant currency).

• FY 2026 non-GAAP operating margin expected at 32%; free cash flow margin at 36%; subscription gross margin at 82%.

• Guidance includes headwinds from revenue mix shift and contributions from recent acquisitions.

• CRPO growth expected at 20% for Q1 2026.