ServiceNow’s quarterly result for Q3-2025 reflects how artificial intelligence has become the company’s primary engine for growth and innovation.
For the third quarter ended September 30, 2025, ServiceNow reported subscription revenue of $3.3 billion, up 21.5 percent year over year, driven by surging enterprise demand for its AI-powered workflow automation platform.
ServiceNow Chairman and CEO Bill McDermott called the results “the clearest demonstration yet that ServiceNow is the AI platform for business transformation,” noting that organizations across industries now view ServiceNow as a foundational layer for implementing AI at scale.
AI-Driven Revenue and Customer Growth
AI adoption is directly fueling ServiceNow’s expanding revenue base. The company’s current remaining performance obligations (cRPO) reached $11.35 billion, up 21 percent, while the number of customers with more than $5 million in annual contract value grew 18 percent. These gains reflect rising enterprise confidence in ServiceNow’s Now Assist, Workflow Data Fabric, and RaptorDB products — all core to the company’s AI strategy.
Now Assist, which integrates generative AI capabilities such as case summarization, AI-powered search, and virtual agent support, is helping customers cut costs and boost productivity. Major clients like AT&T and Uber are deploying these tools to automate service management and enhance customer experiences.
Innovation Accelerating AI Adoption
ServiceNow’s Zurich platform release introduced a range of new AI features, including multi-agentic workflows, natural-language coding tools, and autonomous playbooks that blend human oversight with machine reasoning. These capabilities are driving new use cases across industries — from IT service automation to AI-driven customer relationship management (CRM).
The launch of AI Experience, a context-aware multimodal interface, provides employees with an intelligent entry point to access information, delegate tasks, and collaborate with AI. This new interface is designed to simplify enterprise interaction with AI systems while maintaining governance and security.
Expanding AI Ecosystem Through Partnerships
ServiceNow continues to strengthen its AI ecosystem through strategic alliances and investments. Its expanded partnership with NVIDIA introduced Apriel 2.0, an advanced AI model with multimodal capabilities and improved efficiency, alongside integration with NVIDIA AI Factory architectures for rapid AI deployment.
A new collaboration with FedEx Dataworks aims to create AI-powered supply chain workflows, combining FedEx’s logistics intelligence with ServiceNow’s automation platform. Similarly, partnerships with the U.S. General Services Administration (GSA) and Zaelab are extending ServiceNow’s footprint in government modernization and CRM transformation.
The company also closed a $750 million investment in Genesys, deepening their joint efforts to enhance AI-powered experience orchestration, and announced plans to acquire Moveworks for $2.85 billion — a move that would bring conversational AI and enterprise automation closer together.
AI Efficiency Boosts Profitability
AI is not only driving revenue growth but also improving operational leverage. ServiceNow reported adjusted earnings of $4.82 per share. ServiceNow CFO Gina Mastantuono highlighted how “AI-driven efficiencies are reinforcing our ability to scale with accelerating margin expansion.”
Investing in AI Talent and Innovation
The company is expanding its global AI presence with a new AI Institute and regional innovation hub in West Palm Beach, Florida, projected to generate 850 jobs and $1.8 billion in economic impact over five years. In Latin America, ServiceNow partnered with SENAI SP to launch AI skills programs aimed at building a future-ready workforce.
Outlook
On the strength of its AI-led growth, ServiceNow raised its full-year subscription revenue forecast to $12.84–12.85 billion, surpassing prior guidance. Shares rose 3.4 percent in extended trading following the earnings release.
Rajani Baburajan
