ServiceNow's Q2 2025 shows strong customer retention and revenue expansion

Here at ChurnDog we like looking at earnings reports for publicly traded software companies to identify what their churn and retention metrics look like.

Today we wanted to focus on ServiceNow. For SaaS and subscription-based companies, the true measure of a sticky valuable product is reflected in key retention metrics and Annual Contract Value (ACV) growth and ServiceNow like Palantir and Salesforce continues to show impressive growth with their current customer base.

ServiceNow’s Renewal Rate

ServiceNow covered renewal rates for their current contracts and here are the numbers:

ServiceNow reported a Renewal Rate of 98%for Q2 2025. Their renewal Rate has been consistently 98% across the last five reported quarters (Q2-24 through Q2-25)

This renewal rate indicates that the ServiceNow AI Platform is considered a critical platform by its enterprise users and signals a highly resilient and valuable customer base.

ACV Growth

This was by far the most interesting metric that I dug up from their earnings report and speaks to retention as a key driver of growth. Here’s how ServiceNow performed when it came to their largest customers.

Their Largest Customer Segments Showed Excellent Growth

The core of ServiceNow's expansion story lies in the increasing value derived from its most significant customers.

As of the end of Q2 2025, the company had 528 customers with more than $5 million in Annual Contract Value (ACV) which represents a year-over-year growth rate of approximately 19.5% in the number of these large customers.

The average ACV for these group of customers reached $14.5 million in Q2 2025, up from $13.5 million a year prior (Q2-24).

This was also seen in customers who had even larger contracts. The number of customers with more than $20 million in ACV grew over 30% year-over-year.

These metrics show that the largest companies are rapidly increasing their investment across the ServiceNow platform.

So what’s leading to this expansion

Like other software companies, AI offerings are driving this expansion:

• According to their latest earnings report The Now Assist which is built on top of ServiceNow’s platform helped surpass net new ACV expectations, driven by an increase in both deal volume and size.

Conclusion for ChurnDog Readers

ServiceNow's Q2 2025 results follow the same story as the other major software companies including Palantir, Salesforce and Shopify, namely create a stick product that provides value and continue to provide ongoing value to current customers so you can expand revenue from existing customers.

Before you leave, if you are a company wanting to automate revenue recovery from failed payments but are also wanting to monitor churn trends check out ChurnDog.