ServiceNow, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $3.215 billion for the three months ended June 30, 2025, a 22% increase from $2.627 billion in the same period last year. Subscription revenues, which constitute the bulk of the company's income, rose to $3.113 billion, up from $2.542 billion, reflecting a 22% year-over-year increase. For the first half of 2025, total revenues were $6.303 billion, compared to $5.230 billion in the prior year, marking a 21% increase. The company also reported net income of $385 million for the second quarter, up from $262 million a year earlier, and $845 million for the first half, compared to $609 million in 2024.
The company’s balance sheet showed total assets of $22.051 billion as of June 30, 2025, an increase from $20.383 billion at the end of 2024. Cash and cash equivalents rose to $3.124 billion, up from $2.304 billion, while accounts receivable decreased to $1.696 billion from $2.240 billion. ServiceNow's total liabilities also increased to $11.119 billion from $10.774 billion, with current liabilities rising to $8.495 billion. The company’s stockholders’ equity grew to $10.932 billion, up from $9.609 billion, driven by retained earnings and additional paid-in capital.
Strategically, ServiceNow has been active in expanding its capabilities through acquisitions. In May 2025, the company acquired Logik.io Inc. for $506 million, enhancing its CRM offerings with AI-powered solutions. Additionally, the company announced the acquisition of data.world, Inc. in July 2025, aimed at strengthening its AI platform. ServiceNow is also in the process of acquiring Moveworks, Inc. for approximately $2.9 billion, expected to close in late 2025, which will further enhance its AI capabilities.
Operationally, ServiceNow reported a customer base of 528 clients with an annual contract value (ACV) exceeding $5 million, up from 442 in the previous year. The company’s remaining performance obligations (RPO) stood at $23.9 billion, with 46% expected to be recognized as revenue in the next 12 months. The renewal rate remained stable at 98%, indicating strong customer retention. The company’s workforce has also expanded, contributing to increased operational costs, particularly in sales and marketing, which rose by 18% in the second quarter.
Looking ahead, ServiceNow anticipates continued revenue growth driven by new customer acquisitions and increased usage of its products. The company expects subscription revenues to increase in absolute terms while remaining stable as a percentage of total revenue. Operating expenses are projected to rise as the company invests in expanding its service offerings and enhancing customer support. Overall, ServiceNow remains optimistic about its growth trajectory, supported by a strong balance sheet and strategic investments in technology and talent.
About ServiceNow, Inc.
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