Shares in ServiceNow Inc. rose more than 3% in late trading today after the cloud software maker impressed with earnings and revenue beats in its latest quarter and gave an outlook ahead of expectations.

For its fiscal third quarter ended Sept. 30, ServiceNow reported adjusted earnings per diluted share of $4.82, up from $3.72 per share in the same quarter of the previous year, on revenue of $3.407 billion, up 22% year-over-year. Both beat the $4.26 per share and revenue of $3.355 billion expected by analysts.

ServiceNow saw subscription revenue in the quarter of $3.299 billion, up 22% year-over-year. As of the end of September, the company had current remaining performance obligations of $11.35 billion, up 21% year-over-year and remaining performance obligations of $24.3 billion, up 24%.

Business highlights in the quarter included ServiceNow’s release of the “AI Experience,” a user interface for enterprise artificial intelligence that offers a context‑aware, multimodal environment designed to unite people, data and workflows with built‑in governance and security. The company pitched the offering as “redefining the traditional UI” as the AI Experience serves as the intelligent entry point for employees to access information, delegate tasks and collaborate with AI.

Other launches in the quarter included the Zurich platform release that included new platform innovations that accelerate multi‑agentic development and bring secure, scalable AI systems into production.

The company also introduced new developer tools that enable secure vibe coding with natural language to lower the barrier to application creation, built‑in capabilities such as ServiceNow Vault Console and Machine Identity Console to secure sensitive data and govern integrations and autonomous workflows powered by agentic playbooks that blend AI and human input where and when it’s needed for greater control and efficiency.

“This outstanding Q3 performance is the clearest demonstration yet that ServiceNow is the AI platform for business transformation,” ServiceNow Chief Executive Bill McDermott said in the company’s earnings release. “From autonomous workflows to AI‑driven CRM, ServiceNow is putting AI to work for people, driving massive value creation for customers and shareholders.”

For its fiscal fourth quarter, ServiceNow expects to see subscription revenue of $3.42 billion at the midpoint, slightly above analyst estimates of $3.408 billion.

Alongside the earnings, ServiceNow also announced that its board of directors had approved a five‑for‑one split of the company’s common stock. The split is subject to shareholder approval, which will be put to a vote on Dec. 5.

Photo: ServiceNow