GoKawiilBill McDermott, CEO of ServiceNow Inc., during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, July 10, 2025.
ServiceNow reported first-quarter results on Wednesday that narrowly beat Wall Street's estimates as the software company said the conflict in the Middle East dragged on subscription revenue.
Here's how the company performed versus LSEG estimates:
Earnings per share : 97 cents adjusted vs. 96 cents expected
: 97 cents adjusted vs. 96 cents expected Revenue: $3.77 billion vs. $3.74 billion expected
Revenue for the quarter grew 22% year over year. The company reported $469 million in net income, or 45 cents per share, a slight increase from $460 million, or 44 cents per share, a year ago.
The company said in its release that subscription revenue growth during the quarter "saw an approximately 75 basis point headwind from delayed closings of several large on-premise deals in the Middle East, due to the ongoing conflict in the region."
The company reported quarterly subscription revenues of $3.67 billion, slightly above the $3.65 billion expected by FactSet.
ServiceNow increased its forecast of fiscal 2026 subscription revenues to fall between $15.74 billion and $15.78 billion, up from the forecast it made last quarter of $15.53 billion to $15.57 billion.
"Our full-year guidance reflects a prudent assessment right now of the geopolitical environment," CFO Gina Mastantuono told CNBC. "I definitely took a little bit of incremental conservatism because of the ongoing conflict in the Middle East and its potential impact on deal timing."