ServiceNow, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $3.407 billion for the three months ended September 30, 2025, a 22% increase from $2.797 billion in the same period last year. Subscription revenues, which constitute the bulk of the company's income, rose to $3.299 billion, up from $2.715 billion, reflecting a 22% year-over-year increase. For the nine months ending September 30, 2025, total revenues were $9.710 billion, compared to $8.027 billion in the prior year, marking a 21% increase. The company reported a net income of $502 million for the third quarter, up from $432 million a year earlier, resulting in diluted earnings per share of $2.40, compared to $2.07 in the same quarter of 2024.
In terms of operational metrics, ServiceNow's customer base continued to expand, with 553 customers reporting an annual contract value (ACV) greater than $5 million as of September 30, 2025, compared to 469 in the previous year. The company also reported a remaining performance obligation (RPO) of $24.3 billion, a 24% increase from the previous year, with approximately 47% expected to be recognized as revenue in the next 12 months. This growth in customer count and RPO indicates strong demand for ServiceNow's cloud-based solutions.
Strategically, ServiceNow has been active in acquisitions, including the purchase of Logik.io Inc. for $506 million, aimed at enhancing its customer relationship management capabilities. Additionally, the company acquired data.world, Inc. to bolster its AI platform. ServiceNow also announced a pending acquisition of Moveworks, Inc. for approximately $2.9 billion, expected to close in late 2025 or early 2026. These acquisitions are part of ServiceNow's strategy to expand its product offerings and enhance its competitive position in the market.
The company reported a total cash and cash equivalents balance of $2.725 billion as of September 30, 2025, an increase from $2.304 billion at the end of 2024. ServiceNow's total assets grew to $21.789 billion, up from $20.383 billion, while total liabilities decreased slightly to $10.488 billion from $10.774 billion. The company has also been actively repurchasing its stock, with $1.243 billion spent on share buybacks during the first nine months of 2025, reflecting its commitment to returning value to shareholders.
Looking ahead, ServiceNow anticipates continued revenue growth driven by increased customer adoption and usage of its products. The company expects subscription revenues to increase in absolute dollars while remaining relatively stable as a percentage of total revenue. ServiceNow's management remains optimistic about its ability to navigate macroeconomic challenges and maintain its growth trajectory, supported by a strong cash position and ongoing investments in product development and strategic acquisitions.
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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