ServiceNow stock soar nearly 16% as Q1 results beat estimates and AI bets pay off
Shares of ServiceNow Inc (NYSE: NOW) jumped 15.02% today to close at $935.99, gaining $122.23 in a single session after the company reported stellar Q1 FY25 results that exceeded guidance across all major topline and profitability metrics. The surge reflects investor confidence in the firm's aggressive AI expansion, robust enterprise contracts, and consistent execution. Q1 FY25 Highlights: Strong growth across the board
In the quarter ending March 31, 2025, ServiceNow posted: Subscription revenue of $3,005 million, up 19% YoY (20% in constant currency)
Total revenue of $3,088 million, growing 18.5% YoY
Current Remaining Performance Obligations (cRPO) at $10.31 billion, up 22% YoY
Remaining Performance Obligations (RPO) at $22.1 billion, up 25% YoY
508 customers with more than $5 million in Annual Contract Value (ACV) CEO Bill McDermott: 'ServiceNow is meeting the moment'
Chairman and CEO Bill McDermott emphasized that ServiceNow's growth is being propelled by its role as the 'platinum standard for enterprise-grade AI'. The company is helping CEOs navigate a dynamic environment by driving business transformation through AI-powered automation. CFO Gina Mastantuono highlights operational efficiency
President and CFO Gina Mastantuono said Q1 was a 'quarter of great execution,' noting that internal AI use has driven opex efficiency and strong free cash flow. She added that during uncertain times, customers seek ROI and cost optimization — ServiceNow's strength. Key innovations and acquisitions driving momentum
Throughout Q1 FY25, ServiceNow launched and expanded several groundbreaking initiatives: 🔹 Agentic AI expansion Thousands of preconfigured AI agents across CRM, HR, IT
AI Agent Orchestrator to automate complex workflows
New solutions for telecom and public sector, powered by NVIDIA AI 🔹 Acquisitions & partnerships Announced acquisition of Moveworks for enhanced search and AI assistant capabilities
Plan to acquire Logik.ai , an AI-powered CPQ tool for CRM
Deepened collaborations with NVIDIA, Google Cloud, Vodafone Business, Devoteam, and others Share repurchase and recognition
ServiceNow repurchased 316,000 shares for $298 million in Q1. As of now, $3 billion remains authorized under its $4.5 billion buyback program.
Recent recognitions include: Named a Leader by IDC MarketScape and Forrester
Ranked among Fortune's Most Admired & Most Innovative Companies
Included in Ethisphere's 2025 World's Most Ethical Companies What's next?
With strong Q1 results and a robust AI strategy, ServiceNow is well-positioned for continued momentum in FY25. Its combination of high-value enterprise deals, AI-driven efficiency, and strategic acquisitions positions it as a major force in enterprise software and digital transformation.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment advice. Please consult a financial advisor before making investment decisions.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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