ServiceNow reported Q3 2025 revenue of $3.4 billion, a 22% year-over-year increase, with subscription sales accounting for $3.3 billion or 97% of total revenue. The company’s GenAI-powered conversational chatbots serve 8,400 customers, including 85% of the Fortune 500, and delivered a gross margin of 78%. Remaining performance obligations stand at $11.35 billion, underscoring a healthy backlog of future subscription revenue.

Enterprise clients demonstrate strong loyalty, as evidenced by a 97% overall renewal rate and a 98% rate excluding the loss of a large U.S. federal agency. In Q3, ServiceNow closed 103 transactions exceeding $1 million in new annual contract value and ended the quarter with 553 contracts above $5 million, an 18% improvement year over year. Over the past decade, the company’s platform has supported share gains of approximately 1,000%, cementing its position in robotic process automation.

Since the start of the year, ServiceNow has deployed at least $12 billion on strategic transactions, including the $7.75 billion acquisition of cybersecurity firm Armis, a $2.8 billion purchase of Moveworks and a $750 million investment in Genesys. While management argues these deals will bolster service offerings and drive long-term growth, shares plunged 11% on the Armis announcement and have declined more than 30% year to date, as some investors worry that acquisition spending is compensating for a deceleration in organic revenue growth.

Analysts project full-year 2025 revenue to exceed $13 billion, a 21% increase over the prior year, slightly below earlier estimates. Despite a slowdown in net income growth to 16% year over year in Q3, ServiceNow maintains a market capitalization of approximately $161 billion and an average daily trading volume of 8.1 million shares. Investor focus will center on the company’s ability to integrate recent acquisitions and return to double-digit net income expansion in the next fiscal year.