NOW
ServiceNow, Inc.781.12
+15.92+2.08%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
No large M&A planned
Q&A dismissed M&A jitters, with Bill affirming no large-scale deals ahead post-Armis/Vesa as organic growth hums; Armis adds 1pt to 2026 subscription revenue, up to 50bps op margin headwind absorbed by 2027 via leverage. Federal held firm despite shutdown, public sector pipelines bulge, global gov up 80%. Hyperscaler push dings gross margins temporarily, offset by AI efficiencies lifting op margins 100bps. AI Control Tower directly quells agent monitoring/kill-switch fears. Hybrid pricing trumps full consumption for customer predictability. Pipelines have never been better.
Key Stats
Market Cap
162.22BP/E (TTM)
94.34Basic EPS (TTM)
8.28Dividend Yield
0%Recent Filings
8-K
Execs cancel sales, CEO buys
ServiceNow executives—including CEO Bill McDermott, CFO Gina Mastantuono, and others—terminated their Rule 10b5-1 trading plans on February 13, 2026, cancelling all future stock sales. McDermott separately agreed to buy $3 million in ServiceNow shares on February 27 at market prices, the earliest date avoiding short-swing profit rules. Executives signal confidence. Disclosure furnished under Reg FD.
8-K
Fontaine named CAO
ServiceNow appointed Danielle Fontaine as Chief Accounting Officer and Corporate Controller, effective February 17, 2026, filling the role vacated by Kevin McBride's promotion to Executive Vice President, Accounting and Corporate Services. Fontaine, with prior stints at Alphabet and Gap, gets $420,000 base salary, 40% target bonus, and $1.25M RSUs vesting quarterly over four years. Smooth internal transition. No related party ties disclosed.
10-K
FY2025 results
ServiceNow's FY2025 delivered $13.3B revenue, up 21% y/y, with subscription sales hitting $12.9B (21% y/y growth) fueled by new customers and expansions; Q4 closed strong as always, packing in the year's biggest deals while self-hosted upfronts added $492M. Margins held firm at 78% gross despite 32% cost of subscription rise from data center scaling and regulated-market support, while non-GAAP operating income soared 27% to $4.1B. Free cash flow hit $4.6B; $1.8B buybacks trimmed shares amid $1.5B debt. Moveworks closed Q4 for $2.4B (stock+cash), bolstering AI agents. Q4 accelerated. Government procurement delays threaten momentum.
8-K
Q4 beat, $5B buyback boost
ServiceNow crushed Q4 2025 with subscription revenues up 21% to $3.466B and cRPO soaring 25% to $12.85B. Board added $5B to repurchases—total capacity now $6.4B—aiming to curb dilution via imminent $2B accelerated buyback. Strong backlog fuels 20.5-21% sub growth guidance for 2026. Buybacks flex amid AI momentum.
8-K
McDermott stays through 2030
ServiceNow amended CEO Bill McDermott's employment agreement on December 23, 2025, effective January 1, 2026, locking him in through 2030 as CEO, co-CEO, or Chairman at board discretion. Compensation ties to peer performance in CEO roles. The updated Executive Severance Policy boosts his change-in-control payout to 2x base plus target bonus, with full RSU/PRSU vesting. Leadership continuity secured.
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