ServiceNow Reports Strong Q1 Results, Boosts Annual Guidance

Published 3 hours agoNOW

ServiceNow Reports Strong Q1 Results, Boosts Annual Guidance

ServiceNow announced robust financial results for the first quarter of 2025, with subscription revenue climbing to $3.005 billion. This represents a 19% increase compared to the previous year, or 20% in constant currency terms, reflecting strong demand for the company's cloud-based services.

According to Insider Monkey, the company's promising performance led to an upward revision of its full-year guidance. ServiceNow's growth in the government sector, particularly among U.S. federal agencies, is a key driver. The company anticipates approximately 30% year-over-year growth in this area, bolstered by agencies modernizing IT infrastructure and moving away from outdated systems.

CEO Bill McDermott emphasized their strategic alignment with government cost-reduction initiatives, which is underscored by the launch of ServiceNow's Government Transformation Suite in February 2025. This new offering aims to increase efficiency and transparency, helping federal agencies manage resources more effectively using ServiceNow's AI-powered platform. Following the positive earnings report and updated guidance, ServiceNow's stock rose about 7% in after-hours trading on April 23, 2025.

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