Bill McDermott, chief executive officer of ServiceNow Inc., during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, US, on Thursday, July 10, 2025.
ServiceNow reported third-quarter results on Wednesday that blew past Wall Street's estimates, with the company also approving a five-for-one stock split.
Shares rose 4% after the bell.
Here's how the company did versus LSEG estimates.
Earnings per share : $4.82 adjusted vs. $4.27 expected
: $4.82 adjusted vs. $4.27 expected Revenue: $3.41 billion vs. $3.35 billion expected
Third-quarter subscription revenues, which account for the bulk of the enterprise software company's sales, totalled $3.3 billion and surpassed a $3.26 billion estimate from StreetAccount. Overall revenues grew 22% from the year-ago period.
ServiceNow bumped up full-year guidance, saying it now expects subscription revenue to range between $12.84 billion and $12.85 billion for the year. Last quarter, the company raised FY guidance to a range of $12.78 billion to $12.80 billion.
Like many software companies, ServiceNow is benefitting from the artificial intelligence transformation that's forcing more businesses to adopt the tools.
"Every enterprise in every industry is focused on AI as the innovation opportunity of our generation," wrote CEO Bill McDermott in a release. He called the results the "clearest demonstration" that businesses are relying on ServiceNow for these capabilities.