ServiceNow jumps on better-than-expected earnings
Here’s how the numbers look.
Cloud software giant ServiceNow leapt in the after-hours session Wednesday following better-than-expected earnings and the announcement of plans for a 5-for-1 stock split.
The company reported:
Revenue of $3.41 billion, higher than the $3.36 billion analyst consensus estimate published by FactSet.
Adjusted earnings per diluted share of $4.82 vs. the $4.26 analysts expected.
Subscription revenue of $3.30 billion vs. the $3.26 billion predicted.
Raised guidance for Q4 subscription revenues to between $3.42 billion and $3.43 billion, just higher than the $3.41 billion FactSet consensus.
The company also announced the authorization of a 5-for-1 stock split, subject to shareholder approval.
While there was a moment a couple months back when it looked like SaaS (software as a service) was about to be swept up in the AI-related upward market momentum, shares of companies like ServiceNow and Salesforce never really caught that market wave.
Salesforce remains down more than 20% in 2025, and ServiceNow was down more than 10% shortly before reporting earnings. Meanwhile, corporate AI and defense software company Palantir Technologies is up more than 150%.
