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NOW 4Q25: Solid Results Driven by Year-End Budget Flush, But would it Matter?

FUNDA·January 23, 2026

4Q strength from budget flush; Now Assist attach rising but no breakout; public renewals slipped—no clear catalyst.

We spoke with 3 top ServiceNow (NOW) channel partners. 4Q25 performance was generally robust, bolstered by a more pronounced year-end budget flush than in previous years despite some reported misses due to contract delays in the public sector. While the preliminary outlook for 1Q26 and full-year 2026 remains healthy and Now Assist penetration is rising, customer feedback does not yet indicate a significant acceleration in adoption. Partners generally expect collaborations with LLMs to drive incremental business this year, with minimal short-term impact on NOW’s core budget. We remain cautious on the application SaaS sector as we lack a clear catalyst to reverse the current bearish market narrative.

4Q25 solid led by budget flush, 2026 outlook overall solid

North American Channel Partner A

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