ServiceNow reported a mixed fourth quarter, forecasting subscription revenue that was just shy of Wall Street estimates. ServiceNow reported adjusted earnings of $3.67 a share after the stock market closed on Wednesday,

ServiceNow reported Q4 earnings that topped estimates but shares fell on lower-than-expected subscription revenue growth in 2025.

ServiceNow reported a mixed fourth quarter, forecasting subscription revenue that was just shy of Wall Street estimates. ServiceNow reported adjusted earnings of $3.67 a share after the stock market closed on Wednesday,

The decline in ServiceNow’s share price comes in the wake of a "lackluster outlook" for 2025 subscription growth on a slower artificial intelligence sales bump,"

Shares of enterprise workflow software maker ServiceNow (NYSE:NOW) fell 13% in the morning session after the company reported fourth quarter results: With shares up roughly 20% in the last three months (before this print) and the stock making a 52-week high just earlier this week,

ServiceNow forecast slightly slower growth ahead, even as executives noted that the shakeup caused by artificial intelligence offers significant upside to the cloud-based software company.

ServiceNow forecast annual subscription revenue below Wall Street estimates on Wednesday, affected by a strong U.S. dollar and a planned shift in its monetization model, sending its shares down 8% in extended trading.

ServiceNow on Wednesday also reported 21% revenue growth in its fourth quarter and higher profit. Chief Executive Bill McDermott said the company is in the early innings of an opportunity spurred by the rise of AI. Write to Paul Ziobro at [email protected]

ServiceNow remains a top-tier software leader with sustainable growth potential, according to Goldman Sachs analyst Kash Rangan. The company is expected to report strong subscription revenue growth and solid cRPO growth in FY24.

For the current quarter, ServiceNow is guiding for sales to come in between $2.995 billion and $3 billion -- representing growth of 18.75% year over year at the midpoint of the target. Remaining performance obligations at the end of the period are projected to be up 19.5%.

ServiceNow forecast slightly slower growth ahead after posting 21% revenue growth in the fourth-quarter. The cloud-based software company on Wednesday reported a profit of $384 million, or $1.83 a share, compared with a profit of $295 million, or $1.43 a share, in the year-ago quarter.