Description

ServiceNow Is Cracking the Public Sector Code—And the Growth Runway Looks Long!

ServiceNow, a significant player in the enterprise software sector, recently reported its fourth quarter and full-year 2025 financial results, demonstrating robust performance and forward-thinking strategic initiatives. The company’s Q4 results exceeded expectations, showcasing solid growth in net new annual contract value (NNACV) and subscription revenue. Specifically, subscription revenue grew by 21% year-over-year, surpassing guidance, and the current remaining performance obligation (cRPO) demonstrated a 25% growth. This growth reflects ServiceNow’s competitive position in the enterprise SaaS market and its ability to capture share amidst a dynamic business environment. The company also highlighted substantial achievements in operational efficiency, posting an operating margin of 31%, which was above its guidance. Full-year free cash flow margin reached 35%, indicating strong cash generation capabilities which are crucial for future investments and operational flexibility. ServiceNow’s success in expanding its portfolio was notable with the acquisition of Moveworks, contributing positively to both revenue and RPO.