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Enterprise software maker ServiceNow (NOW) reported third-quarter earnings and revenue that topped consensus estimates while guidance came in above views. The company announced a 5 for 1 split for ServiceNow stock. Reported after the market close on Wednesday, ServiceNow earnings for the quarter ending Sept. 30 rose 29% to $4.82 per share on an adjusted basis. Revenue climbed 22% to $3.407 billion, the Santa Clara, Calif.-based company said. ServiceNow stock analysts had expected the company to report earnings of $4.26 a share on revenue of $3.355 billion. The company said subscription revenue rose more than 21% to $3.299 billion versus estimates of $3.263 billion. ServiceNow Stock: CRPO Guidance The company's current remaining performance obligations, or CRPO, rose 21% to $11.35 billion. Analysts had projected CRPO of $11.089 billion. CRPO bookings are an aggregate of deferred revenue and order backlog and serve as a sales growth metric. For the current quarter ending in December, ServiceNow forecast subscription revenue of $3.420 billion at the midpoint, slightly above estimates of $3.408 billion. Also, ServiceNow said it expects CRPO growth of 23% versus estimates of 19.5% growth to $12.288 billion. On the stock market today, ServiceNow stock rose 4.7% to near 955 in extended trading. Heading into the ServiceNow earnings report, the software stock had retreated 12% in 2025 amid worries over its federal government business. Also, analysts have been looking for more signs that new artificial intelligence products are gaining traction. The company's software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables company employees to access administrative and workflow tools. The IBD Methodology: How To Invest In Stocks While Managing Risks ServiceNow Stock Technical Ratings Further, ServiceNow has expanded from its core business into software for human resources, customer service management and security. ServiceNow recently has pushed into "front office" software (customer service, field service and supply chain management). ServiceNow and other software makers are rolling out autonomous, goal-driven AI "agents" that complete tasks on their own. Competition with big-cap software peer Salesforce (CRM) has been heating up. In March, ServiceNow agreed to buy artificial intelligence software maker Moveworks for $2.85 billion, marking its biggest acquisition ever. Moveworks' platform features a generative AI assistant for employee support. Coming into the ServiceNow earnings report, the software stock had an IBD Composite Rating of 88 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better. ServiceNow stock holds an Accumulation/Distribution Rating of B-minus. That institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral. Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing. YOU MAY ALSO LIKE: Why Did Nvidia GTC News Spook Quantum Computing Stocks? Learn The Best Trading Stock Rules From IBD's Investor's Corner Want To Trade Options? Try Out These Strategies Monitor IBD's 'Breaking Out Today' List For Companies Hitting New Buy Points
