Report
ServiceNow, Inc.
NOW

Published 2/15/2026, 5:18:59 PM

NOW Q4 2025 earnings highlights with 10 key quotes.

Bullish
Cautious
Key highlights
CEO Bill McDermott: ServiceNow Valuation Lagging Due to Misperception as SaaS vs. Platform

"Many people ask why our valuation has not kept pace with our results. The short answer is that we have been viewed as a feature-oriented SaaS company. We are not living in a SaaS neighborhood. We are a platform company executing a long-term platform strategy where AI agents and workflows are harmonious and synonymous, creating sustained advantage, not short-term wins."

CEO · Bill McDermott

CEO Bill McDermott: AI Business Surpasses $600 Million in Annual Revenue, Doubling Year-Over-Year

"Now Assist NNA CV outperformed expectations in Q4 and surpassed $600 million in ACV. In Q4, Now Assist NNA CV more than doubled year-over-year. We had 35 deals over $1 million in Q4 alone. Our AI Control Tower deal volume nearly tripled quarter-over-quarter in Q4."

CEO · Bill McDermott

CEO Bill McDermott: Refuting the 'AI Will Eat Software' Theory with Platform Governance

"The speculation of AI will eat software companies is out there. Let's clear it up with the facts. Enterprise AI will be the largest driver of return on the multi-trillion-dollar super cycle of investment in AI infrastructure. The real payoff comes when trillions of tokens move beyond pilots to be embedded directly into the workflows where business decisions are made. ServiceNow is the gateway to this shift, serving as the semantic layer that makes AI ubiquitous in the enterprise."

CEO · Bill McDermott

CFO Gina Mastantuono: AI Efficiencies Driving Record 36% Free Cash Flow Margin Forecast for 2026

"We expect an operating margin of 32%, up 100 basis points year-over-year, driven by OpEx savings enabled by AI efficiencies. We expect free cash flow margin of 36%, up 100 basis points year-over-year, and 350 basis points ahead of our target that we gave at Financial Analyst Day in May. This is driven by significant operational leverage and further opportunities to reduce CapEx."

CFO · Gina Mastantuono

CEO Bill McDermott: New Security Acquisitions Moveworks, Veza, and Armis Create Massive Growth Engine

"Post-Moveworks, we do not see any other large white spaces that are necessary to complete our platform vision to security. ServiceNow's organic growth strategy with opportunistic tuck-ins for tech and talent remains unchanged. AI, data, workflows, security. We are one of the few companies totally in control of our own destiny."

CEO · Bill McDermott

CEO Bill McDermott: $5 Billion Share Buyback Authorized Following Recent Stock Pullback

"That's why we're announcing an incremental $5 billion share repurchase authorization with an immediate ASR of $2 billion. Here's another fact. ServiceNow has one unifying objective, which is simply to be the AI-defining enterprise software company of the 21st century."

CEO · Bill McDermott

CEO Bill McDermott: Customer Support Model Flipping from 80% Human to 80% AI Automation

"We closed a $1 million+ Assist Pack deal with a leading U.S. consumer services company after customer service agents generated a 400% ROI. After a year of deployment, the customer needed 8 times more assists as they transitioned customer support operations to predominantly automated interactions. They are flipping the support model from 80% human-led, 20% automated, to 80% automated and 20% human-led."

CEO · Bill McDermott

CEO Bill McDermott: Deep AI Integrations with Microsoft, OpenAI, and Anthropic Boost Market Reach

"ServiceNow and Microsoft have announced a deep AI integration, connecting copilots, agents, and data across Microsoft 365 and the ServiceNow AI platform to deliver seamless orchestration, governance, and enterprise-wide automation. ServiceNow and Anthropic have announced an expanded partnership to integrate Claude models more deeply into the ServiceNow AI platform."

CEO · Bill McDermott

CFO Gina Mastantuono: Large Customer Growth Accelerates with 30% Increase in $20 Million+ Deals

"We accelerated net new customer adds in 2025 to end the year with over 8,800 customers, including 603, generating over $5 million in ACV. Even more impressive, the number of customers contributing $20 million or more rose over 30% year-over-year. These trends reflect the resilient strength in our core, accompanied by increasing momentum in our emerging growth sectors."

CFO · Gina Mastantuono