Filing Flows › ServiceNow (NOW) › Q2 2025
ServiceNow (NOW) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 24, 2025
ServiceNow (NOW) reported revenue of $3.2B for the second quarter 2025 (Q2 2025), +22% from a year earlier and +4% from the quarter before. Operating margin was 11.1%, net earnings $385M (12.0% of revenue).
ServiceNow, Q2 2025: revenue $3.2B (+22% year over year), operating margin 11.1%, net earnings $385M, operating cash flow $716M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.2B | +4% | +22% |
| Gross profit | $2.5B | +2% | +20% |
| Operating profit | $358M | -21% | +49% |
| Net earnings | $385M | -16% | +47% |
| Operating cash flow | $716M | -57% | +15% |
| Free cash flow | $526M | -64% | +47% |
What changed
Revenue was $3.2B in Q2 2025, up 22% year over year and up 4% from the previous quarter. Subscription was the largest line at 97% of revenue. Subscription added $0.57B year over year (up 22%), 97% of the total change.
Gross margin was 77.5%, down 1.5 points from a year earlier. Operating profit was $0.36B, a 11.1% margin (up 2.0 points year over year). Of the extra revenue versus a year earlier, 20% reached operating profit, above the 9% margin then. Operating expenses grew 16% against revenue growth of 22%. The fastest-growing cost line was Sales & marketing (+18%). Net earnings were $0.39B, up 47% year over year. The effective tax rate was 18.3%. Non-operating items added $0.11B, 24% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.72B (up 15% year over year), 186% of net earnings. Non-cash charges added back $0.17B of depreciation and amortization and $0.50B of share-based compensation. Working capital and other items used $0.34B. Capital expenditures of $0.19B left free cash flow of $0.53B.
Questions
What was ServiceNow's revenue in the second quarter 2025?
ServiceNow (NOW) reported revenue of $3.2B for the second quarter 2025 (Q2 2025), +22% from a year earlier and +4% from the quarter before.
Was ServiceNow profitable in the second quarter 2025?
Operating profit was $358M (11.1% of revenue) and net earnings $385M.
Source: ServiceNow 10-Q on SEC EDGAR.