ServiceNow Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Congratulations, Bill and team. Bill, I like to Super 8, but I still like the category of one, even better than Super 8, but I wanted to ask you a question. With agentic technology is becoming abundantly clear as you outlined that there is a process of integration, implementation. We're back to, in some sense, making software companies like you're successful with the help of the outside work like the Accentures and what not. Some integration expertise, implementation expertise could go a long way, maybe even the talk of forward deployed engineers to get this technology prime for real-time. What are your thoughts on that, Bill, going forward as you really try to institutionalize the adoption of agentic technology in your ecosystem? That's it for me. All the best for the future. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 9:00PM, NOW.N - Q3 2025 ServiceNow Inc Earnings Call

Question: Kash Rangan - Goldman Sachs Group Inc - Analyst : Bill, the world should know that as that helicopter swiveled 45 degrees from it's a forward path of progress that you diligently on a blackberry were tapping away e-mails with, I think, perfect spelling, so and I was nearly throwing up and you were so kind to me. So that memory will go down forever.

Question: Alex Zukin - Wolfe Research LLC - Analyst : Maybe just a quick two-parter, Bill, for you. maybe demand trends as you progress through the quarter, linearity of bookings and kind of maybe talk to us a little bit about how the consumption and utilization of some of the AI credits is trending? It sounds like it's going better than you expected. And then I have a quick follow-up for Gina.

Question: Alex Zukin - Wolfe Research LLC - Analyst : Wonderful and amazing. Gina, maybe for you, the renewal cohort in Q4 that's been, I think, headwind to CRPO growth. Anything that stands out positive from this large renewal cohort that was initially expected this quarter, like whether it's a greater willingness to expand with Pro Plus and anything to think through there as we incorporate the prudence in the guidance?

Question: Tyler Radke - Citibank Cameroon SA - Analyst : Great. You talked about some pretty astounding consumption increases, 55x. Can you just talk to what do you think is sort of driving that type of consumption? I mean I imagine it's pretty broad based, but if you're seeing that outsized in a particular vertical or use case? And then you talked about $500 million of analysis ACV by year-end. Just any sense on kind of how that tracks to your original expectations and what the upside could look like on the $1 billion target next year?

Question: Michael Turrin - Wells Fargo Securities LLC - Analyst : Gina, the 3Q results as you're alluding to are impressive, especially given the uncertainty the company has been navigating throughout the year. The one question we're getting is around the fourth quarter subscription revenue guide for 18%. That number is a touch lower than where the CRPO growth rates overall seem to be settling. So just any context you can give us to help bridge those two metrics? Is that public sector comment you're making more specifically tied the fourth quarter guide or are there other assumptions just given renewal dynamics and a few months that we know are very important for the company to be mindful of as well? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 9:00PM, NOW.N - Q3 2025 ServiceNow Inc Earnings Call

Question: Kirk Materne - Evercore Inc - Analyst : I'll echo the congrats on the quarter. Bill, you're mentioning that some of the bigger enterprises are starting to get rid of some of these pilot projects with AI, which would seem to lead to more consolidation to platforms like yourselves. I was just wondering when you're talking to CEOs about AI, how important is it to be able to talk about AI and workflow from an industry context? Meaning, you all obviously have specialization in areas like government, financial services, how important is the fact that you can bring solutions that address specific industry workflow pain points as well as just more horizontal? Just curious on your thoughts on that.

Question: Peter Weed - Sanford C Bernstein & Co LLC - Analyst : I think one of the really innovative and exciting opportunities you've been talking about is the AI Control Tower. And I wanted to kind of pick your brain on how you see the demand from buyers? Is this the type of thing where people are investing in the Control Tower as they start on their AI journey? Or does the buyer really need to get to kind of a certain maturity level before they realize its need and then they kind of come back and invest in it. And if you think through that model, like how does the commercials ramp? And how material can this opportunity be for ServiceNow over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 9:00PM, NOW.N - Q3 2025 ServiceNow Inc Earnings Call

Question: Brad Sills - Bofa Merrill Lynch Asset Holdings Inc - Analyst : I wanted to ask a question also on Now Assist. Just given the momentum you're seeing here. Wanted to get your thoughts on the pricing change earlier this year. Do you feel like that has been well received. Has that been an unlock for you as you're starting to see some of the momentum here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 9:00PM, NOW.N - Q3 2025 ServiceNow Inc Earnings Call Do you have the right pricing model in place, you kind of feel that way? And then also some of the deal metrics you mentioned sound like you're getting to a place where probably have some pretty decent lighthouse accounts for reference with Now Assist. Do you feel that, that could be a catalyst for more Now Assist deals to come?

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : I had two questions, hopefully quick ones. Bill, first, I'm curious just in terms of where you see interest and adoption, is there a particular workflow that sticks out or that customers are adopting first? And then is it IT and then you see them expand to customer in HR and other workflows for your analysis SKUs? And then second question, just in terms of monetization. I'm curious if the $500 million that you have planned by the end of the year, how much of that is the subscription uplift piece versus the token consumption or should we think of consumption kind of layering in more in 2026?

Question: Keith Bachman - Bank of Montreal - Analyst : I wanted to drill down, if I could, on the security piece. It was highlighted in the prepared remarks and the question relates to, are you actually seeing an acceleration as security crosses into that $1 billion ACV threshold? And does it include benefits from AI within the context of security? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2025 / 9:00PM, NOW.N - Q3 2025 ServiceNow Inc Earnings Call And if so, how? And Gina just on the last question, I just wanted to sneak in one more, your previous guidance on margins for '26 were plus 100 for operating and plus 50 for free cash flow. Does that still hold on the higher base? And that's it for me. Congratulations on the quarter.