ServiceNow Inc (0L5N.L) Q3 2025 Earnings Report

ServiceNow’s QQ3 2025 results show a durable growth profile supported by a high-margin, subscription-based business and robust free cash flow generation. Revenue reached $3.407 billion, up 21.8% year over year and 5.97% quarter over quarter, while gross margin stood at 77.3% and operating margin at 16.8%, underscoring strong operating leverage in the Now Platform and related workloads. Net income of $502 million and GAAP EPS of $2.42 ($2.40 diluted) reflect healthy profitability as the company benefits from scale, improved mix, and disciplined cost management. Cash flow metrics remain compelling: operating cash flow per share $3.93 and free cash flow per share $2.79, with cash per share at $26.14 and a modest balance sheet footprint (debt ratios in the low single digits). The cash-generative profile and low debt support a constructive long-term investment case, even as valuations remain elevated relative to broader benchmarks. Management commentary centered on sustained demand for cloud-based workflow automation and the expanding utility of the Now Platform across IT, HR, and operations, with ongoing investments in AI, automation, and developer tools to deepen customer adoption. Given the current data, the company appears well-positioned to maintain growth momentum, supported by a large addressable market and a scalable recurring revenue model, while investors should monitor valuation discipline and competitive dynamics in enterprise software.