ServiceNow’s Q3 Boom Fails to Lift Its Struggling Stock in 2025
ServiceNow, a leading enterprise cloud platform, reported strong financial results in Q3 2025. Subscription revenue surged to $3.3 billion, up 21.5% year over year. Despite this growth, the company's stock has declined 18.7% on the yahoo finance platform over the past 52 weeks.
ServiceNow's total revenue climbed 22% YoY to $3.4 billion in Q3 2025. The company's current RPO and total RPO stood at $11.35 billion and $24.3 billion respectively, reflecting YoY increases of 21% and 24%. These impressive figures are partly driven by AI demand and have led to raised guidance.
However, ServiceNow's stock has not mirrored this financial success. It is down 19.9% in 2025, underperforming the S&P 500 Index and the iShares Expanded Tech-Software Sector ETF on the stock market. This is despite a positive outlook and strong consensus among analysts, who rate the stock as a 'Strong Buy' with a 36.5% premium price target. Following the release of Q3 earnings on Oct. 29, ServiceNow's shares rose 2.5% in the next trading session.
ServiceNow's financial performance in Q3 2025 was robust, with significant increases in subscription revenue and RPO. Despite these positive results, the company's stock has faced volatility and underperformance compared to broader tech indices on the stock market. As the company continues to grow and adapt to AI demand, investors will be watching for further developments in the coming quarters.
