Overview
- Revenue rose 20.5% to $3.57 billion with adjusted EPS of $0.92, topping estimates as subscription sales reached $3.47 billion.
- Management guided Q1 subscription revenue to $3.650–$3.655 billion (up about 21.5%) and set full‑year subscription revenue at $15.53–$15.57 billion.
- Remaining performance obligations climbed 26.5% to $28.2 billion, with current RPO up 25% to $12.85 billion, signaling strong demand visibility.
- Now Assist hit $600 million in annual contract value, with the company targeting more than $1 billion by the end of 2026 and positioning its AI Control Tower for agentic AI orchestration.
- Shares fell after the report even as analysts largely reiterated positive ratings, including Bernstein (Outperform, $219), Cantor Fitzgerald (Overweight, $200), and Stifel (Buy, target trimmed to $180).