ServiceNow Posts 20.5% Q4 Revenue Growth and Guides Q1 Subscription to $3.65B–3.66B
ServiceNow's Q4 2025 revenue jumped 20.5% YoY to $3.57B, with subscription sales rising 21% to $3.47B and EPS of $0.92 beating forecasts. It forecasts Q1 2026 subscription sales of $3.65–3.66B (21.5% YoY) and expects the Moveworks acquisition to add 100bps.
1. Q4 2025 Financial Results
ServiceNow delivered revenue of $3.57 billion in Q4 2025, up 20.5% year-over-year and exceeding consensus of $3.53 billion. Subscription sales, which represent the bulk of total revenue, grew 21% to $3.47 billion and EPS reached $0.92 versus an expected $0.88.
2. Q1 2026 Subscription Guidance
For the first quarter of 2026, ServiceNow guided subscription sales to $3.65 billion–$3.66 billion, implying 21.5% year-over-year growth at the midpoint. This outlook signals an acceleration in recurring revenue momentum as the company continues to scale its platform.
3. Analyst Revisions and AI Focus
One analyst flagged ServiceNow among top US software names to watch, citing potential from improved execution and strategic AI initiatives. Another firm trimmed its price target to $175 from $240 but retained a Buy rating, noting that long-term value concerns have driven the sector pullback and underscoring the need for AI adoption and a shift away from seat-based models.
4. Moveworks Acquisition Impact
ServiceNow expects its recent Moveworks acquisition to contribute an additional 100 basis points to subscription revenue in Q1 2026 and throughout full-year 2026, bolstering growth and enhancing its AI-driven workflow automation capabilities.