ServiceNow (NOW) reported $3.57 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 20.7%. EPS of $0.92 for the same period compares to $0.73 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.52 billion, representing a surprise of +1.24%. The company delivered an EPS surprise of +5.84%, with the consensus EPS estimate being $0.87.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $12.85 billion versus $12.56 billion estimated by five analysts on average.
- Remaining Performance Obligations (RPO) - GAAP: $28.20 billion compared to the $27.59 billion average estimate based on three analysts.
- Revenues- Subscription: $3.47 billion versus the nine-analyst average estimate of $3.42 billion. The reported number represents a year-over-year change of +20.9%.
- Revenues- Professional services and other: $102 million compared to the $99.33 million average estimate based on eight analysts. The reported number represents a change of +12.1% year over year.
- Gross Profit (Non-GAAP)- Professional services and other: $-2 million versus $10.21 million estimated by seven analysts on average.
- Gross Profit (Non-GAAP)- Subscription: $2.87 billion compared to the $2.85 billion average estimate based on seven analysts.
View all Key Company Metrics for ServiceNow here>>>
Shares of ServiceNow have returned -14.5% over the past month versus the Zacks S&P 500 composite's +0.8% 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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