ServiceNow, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, with total revenues reaching $13.3 billion, a 21% increase from $11.0 billion in 2024. Subscription revenues, which constitute the majority of the company's income, rose to $12.9 billion, up from $10.6 billion the previous year. The company also achieved a net income of $1.7 billion, compared to $1.4 billion in 2024, reflecting a 23% increase in profitability. The growth in revenue and net income was attributed to increased purchases from both new and existing customers, alongside a strong renewal rate of 98% for subscription contracts.
In terms of operational metrics, ServiceNow's remaining performance obligations (RPO) stood at $28.2 billion as of December 31, 2025, marking a 27% increase from the previous year. The current RPO, which represents revenue expected to be recognized within the next 12 months, accounted for 46% of the total RPO. The company also expanded its customer base, reporting 603 customers with an annual contract value exceeding $5 million, up from 502 in 2024. This growth in customer count is indicative of the increasing adoption of ServiceNow's AI-powered solutions across various industries.
Strategically, ServiceNow made notable acquisitions in 2025, including Moveworks, a company specializing in enterprise search and virtual agent technology, for approximately $2.4 billion. This acquisition is expected to enhance ServiceNow's capabilities in customer relationship management (CRM) and drive further innovation within its platform. Additionally, the company announced plans to acquire Armis Security Ltd. for $7.75 billion, aiming to bolster its cybersecurity offerings. These acquisitions align with ServiceNow's strategy to expand its product portfolio and enhance its market position in the rapidly evolving technology landscape.
ServiceNow's workforce also saw growth, with a total employee count of 29,187 as of December 31, 2025, up from 25,000 in the previous year. The company continues to invest in research and development, with R&D expenses increasing to $2.96 billion, reflecting a commitment to innovation and product enhancement. The company anticipates continued revenue growth in 2026, driven by the ongoing demand for its AI-driven solutions and the expansion of its customer base.
Looking ahead, ServiceNow remains optimistic about its growth trajectory, despite potential challenges posed by global economic conditions and competitive pressures. The company plans to leverage its established market position and customer relationships to capitalize on emerging opportunities in the AI and digital transformation sectors. With a strong financial foundation and strategic investments in technology and talent, ServiceNow is well-positioned to navigate the evolving landscape and drive future growth.
About ServiceNow, Inc.
ServiceNow, Inc. provides a cloud-based platform that automates and digitizes enterprise workflows across IT, customer service, HR, security, and industry-specific functions. Its Now Platform leverages AI, including Generative AI, to enhance productivity, streamline processes, and improve user experiences. Serving large enterprises worldwide, the company offers scalable, flexible solutions that connect systems, data, and people to drive digital transformation and operational efficiency.
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