ServiceNow, Inc. SEC 10-Q Report

ServiceNow, Inc., a leading provider of enterprise cloud computing solutions, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant financial growth and operational achievements, underscoring the company's robust performance and strategic initiatives aimed at enhancing its market position.

Financial Highlights

• Total Revenues: $3,407 million, increased by 22% compared to the same period last year, driven by increased purchases by new and existing customers.
• Gross Profit: $2,633 million, representing a gross profit percentage of 77%, slightly down from 79% in the prior year period.
• Income from Operations: $572 million, a 37% increase from the prior year period, reflecting improved operational efficiency.
• Net Income: $502 million, up from $432 million in the prior year period, indicating strong bottom-line growth.
• Net Income Per Share - Basic: $2.42, compared to $2.09 in the prior year period, reflecting increased profitability per share.
• Net Income Per Share - Diluted: $2.40, compared to $2.07 in the prior year period, showing enhanced earnings per share performance.

Business Highlights

• Revenue Segments: Subscription revenues accounted for 97% of total revenues, with professional services and other revenues making up the remaining 3%. This indicates a strong reliance on subscription-based income, which is consistent with the company's business model.
• Geographical Performance: North America remains the largest market, contributing $2,133 million in revenues for the three months ended September 30, 2025, followed by EMEA with $873 million, and Asia Pacific and other regions with $401 million. This distribution highlights the company's strong presence in North America and growing influence in EMEA and Asia Pacific.
• Customer Segments: The company reported having 553 customers with an annual contract value greater than $5 million as of September 30, 2025, up from 469 customers in the previous year. This growth reflects the company's success in expanding its customer base and increasing the value of its contracts.
• New Product Launches: The acquisition of Logik.io Inc. and data.world, Inc. is expected to enhance the company's CRM capabilities and strengthen its AI platform, respectively. These strategic acquisitions are aimed at expanding the company's product offerings and improving its competitive position.
• Future Outlook: The company expects subscription revenues to increase in absolute dollars for the year ending December 31, 2025, driven by new customer acquisitions and increased usage by existing customers. However, the subscription gross profit percentage is expected to decrease slightly due to increased costs associated with supporting customers in regulated markets and evolving data residency requirements.
• Operational Efficiency: The company has seen improvements in professional services and other gross loss percentage, achieving break-even for the three months ended September 30, 2025, compared to a 7% loss in the same period last year. This improvement is attributed to better timing of professional services engagements and increased partner and internal utilization.

SEC Filing: ServiceNow, Inc. [ NOW ] - 10-Q - Oct. 29, 2025