ServiceNow Inc. (NYSE: NOW) released its fourth quarter and full-year financial results for 2025 on January 28, 2026, showcasing a robust performance marked by significant year-over-year growth in subscription revenues, new business acceleration, and strategic partnerships aimed at enhancing its AI capabilities.

1. Impressive Financial Performance

For the fourth quarter ending December 31, 2025, ServiceNow reported subscription revenues of $3,466 million, reflecting a 21% year-over-year growth and 19.5% in constant currency. The company’s total revenues for the quarter stood at $3,568 million, representing a 20.5% increase compared to the previous year.

Key Financial Metrics

Current Remaining Performance Obligations (cRPO): $12.85 billion, a 25% year-over-year increase.

Annual Contract Value (ACV): 244 transactions over $1 million in Q4, a growth of nearly 40% year-over-year.

Customers with ACV over $5 million: 603, marking approximately 20% year-over-year growth.

ServiceNow's Chairman and CEO, Bill McDermott, expressed confidence in the company’s trajectory, stating, “ServiceNow significantly beat Q4 expectations, accelerated net new business, and issued exceptional guidance for 2026.”

2. Strategic Acquisitions and Partnerships

ServiceNow has been actively expanding its AI capabilities and market reach through strategic partnerships and acquisitions:

Acquisition of Armis: Intended to enhance security exposure, this acquisition aims to create a comprehensive security operations stack to counter AI-powered attacks. The transaction is expected to close in the second half of 2026.

Acquisition of Veza: Set to bolster identity security in line with AI-driven workflows, aimed for closure in the first half of 2026.

Collaboration with Anthropic: An expanded partnership to deepen integration of Claude models into the ServiceNow AI Platform, enhancing AI governance across industries.

Industry Collaborations

ServiceNow has also established partnerships with several key players to enhance its service offerings:

Collaboration with OpenAI: To enable enterprises to access frontier AI model capabilities directly.

Partnership with Microsoft: Integration of Microsoft Agent 365 with the ServiceNow AI Platform to streamline AI orchestration for joint customers.

Collaboration with Fiserv: Focused on transforming financial services operations through AI integration.

3. Share Repurchase Program and Stock Split

In a move to return value to shareholders, ServiceNow repurchased approximately 3.6 million shares for $597 million in Q4 2025. The company’s Board authorized an additional $5 billion for its share repurchase program, with $1.4 billion remaining for future repurchases. Furthermore, a 5-for-1 stock split took effect on December 17, 2025.

4. Commitment to AI and Public Sector

ServiceNow also announced a CA$110 million multi-year commitment aimed at advancing AI adoption in Canada’s public sector. This initiative includes building AI-ready infrastructure and creating approximately 100 high-skilled jobs in Canada.

5. Recognition and Market Position

ServiceNow has received accolades in various analyst reports, being recognized as a leader in enterprise service management and AI-enabled applications. The company was also listed among Fortune’s World’s Most Admired Companies for 2026 and made appearances in Glassdoor’s Best Places to Work and TIME’s America’s Growth Leaders.

6. Conclusion

ServiceNow’s strong financial results for Q4 2025 and the full year, coupled with strategic acquisitions and partnerships, position the company favorably in an increasingly competitive landscape. As it continues to innovate and expand its AI capabilities, ServiceNow remains a key player in driving business reinvention across various industries. With an optimistic outlook for 2026, the company appears well-equipped to leverage its strengths and maintain its growth trajectory.

Original press release