ServiceNow Inc (NYSE:NOW) reported fourth-quarter financial results after the market close on Wednesday. Here’s a rundown of the software solution’s company’s report.
- ServiceNow stock is trending. What’s next for NOW shares?
ServiceNow Beats Q4 Analyst Estimates
ServiceNow reported fourth-quarter revenue of approximately $3.57 billion, beating the consensus estimate of $3.53 billion, according to Benzinga Pro. The company reported adjusted earnings of 92 cents per share for the fourth quarter, beating analyst estimates of 88 cents per share.
Total revenue increased 20.5% year-over-year, while Subscription revenue climbed 21% year-over-year. ServiceNow said it had remaining performance obligations of $28.2 billion at quarter’s end, up 26.5% year-over-year. The company noted that customers with more than $5 million in annual contract value increased approximately 20% year-over-year.
“We had substantial growth in licensed users, workflows, and transactions on our platform,” said Bill McDermott, chairman and CEO of ServiceNow.
“With our consistent Rule of 55+ profile, there is no AI company in the enterprise better positioned for sustainable, profitable revenue growth than ServiceNow. We are building the AI control tower for business reinvention so enterprises can operate securely in an agentic AI world.”
ServiceNow said it repurchased approximately 3.6 million shares of its common stock in the quarter for $597 million. The company had $1.4 billion remaining on its buyback at quarter’s end. The company’s board also authorized an additional $5 billion in share repurchases.
ServiceNow Sees Subscription Revenue Growth Ahead
ServiceNow expects first-quarter subscription revenue of $3.65 billion to $3.655 billion. The company sees full-year 2026 subscription revenue in the range of $15.53 billion to $15.57 billion, representing about 21% year-over-year growth.
In connection with earnings, ServiceNow announced a collaboration with Anthropic to further integrate Anthropic Claude models into core ServiceNow workflows for application development. The company also announced an expanded strategic commitment with Fiserv and an expanded relationship with Panasonic Avionics Corporation.
NOW Shares Climb After The Bell
NOW Price Action: ServiceNow shares were down 4.33% in after-hours Wednesday, trading at $124.01 at the time of publication, per Benzinga Pro.
ServiceNow’s management team will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
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