ServiceNow (NOW) reported $3.22 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 22.4%. EPS of $4.09 for the same period compares to $3.13 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.12 billion, representing a surprise of +3.02%. The company delivered an EPS surprise of +15.54%, with the consensus EPS estimate being $3.54.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Current Remaining Performance Obligations(cRPO) - GAAP: $10.92 billion compared to the $10.48 billion average estimate based on four analysts.
- Remaining Performance Obligations (RPO) - GAAP: $23.90 billion compared to the $22.11 billion average estimate based on three analysts.
- Revenues- Professional services and other: $102 million versus $88.78 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +20% change.
- Revenues- Subscription: $3.11 billion versus $3.03 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +22.5% change.
- Gross Profit (Non-GAAP)- Subscription: $2.59 billion versus $2.53 billion estimated by eight analysts on average.
- Gross Profit (Non-GAAP)- Professional services and other: $14 million compared to the $9.05 million average estimate based on eight analysts.
View all Key Company Metrics for ServiceNow here>>>
Shares of ServiceNow have returned -3.4% over the past month versus the Zacks S&P 500 composite's +5.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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