ServiceNow Inc (NYSE:NOW) shares are dipping on Tuesday. Investors are looking ahead to the company's fourth‑quarter earnings report.

Analysts expect ServiceNow to post earnings of 72 cents per share for the quarter, according to Benzinga Pro estimates. For comparison, ServiceNow reported GAAP earnings of $2.40 per diluted share last quarter.

Momentum From A Strong Q3

The company heads into the report with strong momentum after a standout third-quarter, where it beat guidance across all major growth and profitability metrics. Subscription revenue climbed to $3.3 billion, up 21.5% year-over-year, while total revenue reached $3.41 billion, also rising 22%.

ServiceNow also reported solid gains in remaining performance obligations, with current RPO hitting $11.35 billion and total RPO reaching $24.3 billion. Both had grown more than 20% from the prior year. Off the back of those results, the company raised its full‑year 2025 outlook for subscription revenue, operating margin and free cash flow.

Looking Ahead

Fourth-quarter Current RPO has been projected to grow 23% GAAP and 19% in constant currency. Operating margin is expected to be around 30%.

Full‑year 2025 subscription revenue is forecast at $12.84 billion to $12.85 billion, reflecting 20.5% GAAP growth and 20% constant‑currency growth.

Subscription gross margin is expected to be 83.5%. Operating margin is projected at 31%, with free cash flow margin around 34%.

CEO Bill McDermott commented on Q3 results and said the performance is a clear sign that ServiceNow is becoming a leading AI platform for enterprise transformation, noting that companies across industries are prioritizing AI adoption.

ServiceNow’s management team will hold a conference call to discuss its quarterly results at 5:00 p.m. ET on Wednesday.

NOW Price Action: ServiceNow shares were down 3.46% at $131.64 at the time of publication on Tuesday, according to Benzinga Pro.

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