ServiceNow (NOW) has delivered a stunning quarterly report that surpassed all market expectations, prompting the company to announce its first-ever stock split. The outstanding financial results have propelled the software giant’s shares to unprecedented levels.
Unprecedented Growth Metrics
The workflow automation specialist reported extraordinary third-quarter results for fiscal 2025. Subscription revenues surged to $3.299 billion, representing a robust 21.5% year-over-year increase. Total revenue climbed to $3.407 billion, while earnings per share dramatically exceeded projections at $4.82 compared to the anticipated $4.27.
Revised Outlook Signals Continued Momentum
Bolstered by this exceptional performance, management has significantly raised its full-year guidance. ServiceNow now forecasts 2025 subscription revenues between $12.835 billion and $12.845 billion, translating to approximately 20.5% growth.
Key upward revisions include:
* Operating margin increased by 50 basis points to 31%
* Free cash flow margin raised by 200 basis points to 34%
* Fourth-quarter subscription revenues projected between $3.42 billion and $3.43 billion
Should investors sell immediately? Or is it worth buying NOW?
Historic Corporate Action: 5-for-1 Stock Division
In a landmark corporate decision, ServiceNow’s board has approved the company’s inaugural stock split, structured as a 5-for-1 division. Pending shareholder approval, this initiative is scheduled for implementation on December 5, 2025. The move aims to enhance accessibility for a broader investor base and improve trading liquidity.
Artificial Intelligence Driving Transformation
The company’s remarkable results find their foundation in its strategic focus on artificial intelligence. ServiceNow’s positioning as an “AI platform for business transformation” continues to yield substantial returns. The AI business segment is expected to reach an annual contract value of $500 million this year, with management targeting the $1 billion threshold for 2026.
Current remaining performance obligations of $11.35 billion, reflecting a 21% year-over-year increase, underscore sustained enterprise demand for ServiceNow’s AI-powered workflow automation solutions. As the AI revolution accelerates across corporate landscapes, ServiceNow appears firmly positioned at the forefront of this technological transformation.
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