ServiceNow Inc (NYSE:NOW) reported financial results for the third quarter after the market close on Wednesday. Here’s a look at the key details from the print.
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ServiceNow Q3 Earnings Highlights
ServiceNow posted third-quarter revenue of approximately $4.11 billion, beating the consensus estimate of $4.10 billion, according to Benzinga Pro. The software solutions company reported adjusted earnings of $1 per share for the quarter, missing estimates of $1.02 per share.
Total revenue increased 20.5% year-over-year as Subscription revenue jumped 21%. ServiceNow said it had remaining performance obligations of $29.7 billion at quarter’s end, up 22% year-over-year.
“This was more than another beat-and-raise quarter for ServiceNow, this was the inflection point for ServiceNow as the Super Intelligence Control Tower,” said Bill McDermott, chairman and CEO of ServiceNow. “Our customers have validated our strategic relevance as the single harness for enterprise intelligence and security.”
ServiceNow expects fourth-quarter subscription revenue of $4.245 billion to $4.255 billion, representing approximately 22.5% to 23% growth. The company sees full-year 2026 subscription revenue in the range of $15.78 billion to $15.79 billion. ServiceNow also raised its forecast for annual AI contract value to $1.7 billion for 2026, up 70% from the start of the year.
In connection with earnings, ServiceNow announced an expanded partnership with OpenAI, a five-year agreement with HPE and an AI deal with Stagwell.
ServiceNow management will further discuss the quarter on an earnings call at 5 p.m. ET.
NOW Shares Move Lower
ServiceNow shares were down 15.25% in after-hours on Wednesday, trading at $127.23 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
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