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WELCOME TO BETA FINCH, YOUR AI-POWERED EARNINGS BREAKDOWN

ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

JORDAN: And I'm Jordan. Today we're digging into Oracle's fiscal Q1 2027 results — and Alex, "acceleration" was literally the word the CFO used to describe this quarter.

ALEX: It was, and before we get into it — quick reminder for everyone listening. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Good to have that out of the way. So Alex, let's talk numbers, because there are a lot of big ones here.

ALEX: Record quarter across the board. Total revenue hit $19.3 billion, up 30% year-over-year. And here's the detail that jumped out at me — Oracle's Q1 revenue actually grew sequentially from Q4, which historically doesn't happen. Q4 is usually the seasonal peak, and Q1 comes in lighter.

JORDAN: Right, and CFO Hilary Maxson flagged that specifically as a sign that they've moved past the "lumpy" phase and into something more like sustained, scaled infrastructure growth. The engine behind that is cloud infrastructure — OCI revenue was $7.4 billion, up 121% year-over-year.

ALEX: 121%. And that's on top of 93% growth the quarter before, so it's actually accelerating, not just staying elevated.

JORDAN: Meanwhile cloud apps grew a steadier 10%, with Fusion at 14% and industry apps north of 20%. Different growth profile, but still healthy. Non-GAAP EPS came in at $1.92, up 30%, and operating margin held basically flat at 42% even with gross margin compression from all the data center ramp-up.

ALEX: That gross margin question actually dominated a chunk of the analyst Q&A. We'll get to that. But first, the number that really got people talking — RPO, remaining performance obligations, jumped $26 billion in the quarter.

JORDAN: And importantly, management said the bulk of that new backlog came through prepayments or "bring your own hardware" style deals — meaning it doesn't require Oracle to front additional capital. They now expect about half of total RPO to convert into revenue over the next 36 months.

ALEX: Which matters because RPO conversion is literally what's driving the infrastructure acceleration we just talked about.

JORDAN: On the capacity side, Co-CEO Clay Magouyrk had some striking stats. Oracle delivered 850 megawatts of AI capacity and more than 300,000 GPUs since the end of Q4 — that's almost triple what they delivered in all of Q4 combined.

ALEX: And GPU utilization is running at 97.9%. Plus, GPUs coming up for renewal were renewed or resold at a 20% premium to their original contracts — most of that hardware is four-plus years old, which pushes back on the narrative that AI chips depreciate fast and lose value.

JORDAN: On the apps side, Mike Sicilia talked up the agentic AI push — over 150 million uses of embedded AI in the quarter, AI agents executing 3.5 million times in production, nearly double the prior quarter. NetSuite also launched "NetSuite Next," a new AI-infused version of the platform.

ALEX: Let's talk guidance, because they actually raised it. Full-year revenue guidance moved up to at least $90 billion, a 34% year-over-year increase, with EPS guidance of $8.10. For Q2 specifically, they're guiding to 30-34% total revenue growth and cloud revenue growth of 65-71%.

JORDAN: Now, the Q&A had some genuinely useful color. One analyst pushed on the elephant in the room — massive CapEx. Oracle's guiding to $90-95 billion in CapEx for the full year, and free cash flow was actually negative $5 billion this quarter because of it.

ALEX: Clay's answer was interesting — he basically said don't equate Oracle's CapEx spend with the limits of the busin

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# Beta Finch Podcast Script: Oracle Q4 2026 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we translate corporate speak into plain English. I'm Alex, and I'm here with my co-host Jordan to dive into Oracle's absolutely massive Q4 2026 earnings results.

**JORDAN**: Hey everyone! And Alex, before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX**: Absolutely crucial reminder, Jordan. Now, let's talk Oracle because - wow - this was a quarter that's going to have people talking. Oracle just reported what they're calling a "record quarter" with revenues hitting $19.2 billion, up 21%. But the real story here isn't just the top line growth.

**JORDAN**: Right, and what's absolutely eye-popping is their remaining performance obligations - their RPO - which hit $638 billion. Alex, that's up 363% year-over-year. To put that in perspective, that's more than half a trillion dollars in contracted future revenue.

**ALEX**: That number is almost incomprehensible. For listeners who aren't familiar, RPO is essentially Oracle's backlog - money customers have already committed to pay them for services they'll deliver over the coming years. It's like having a crystal ball for future revenue growth.

**JORDAN**: And here's the kicker - 12% of that RPO gets recognized in the next 12 months, with another 34% coming in the following two years. New CFO Hilary Maxson said these percentages are expected to accelerate, which suggests Oracle's revenue growth is about to shift into a much higher gear.

**ALEX**: Speaking of growth drivers, let's talk about the elephant in the room - AI infrastructure. Clayton Magouyrk, who runs Oracle Cloud Infrastructure, dropped some serious numbers. They signed $67 billion in AI infrastructure contracts just this quarter. And get this - most of these were either "bring your own hardware" deals or prepaid contracts.

**JORDAN**: That's fascinating because it shows customers are so confident in Oracle's infrastructure capabilities that they're willing to bring their own expensive GPU hardware or pay Oracle upfront. It's like customers saying, "We trust you so much, here's our own equipment - just run it for us."

**ALEX**: Exactly! And Clayton mentioned they delivered over 1.2 gigawatts of capacity to customers in fiscal 2026. Their Q1 delivery is approaching 1 gigawatt alone - nearly matching what they delivered in the previous four quarters combined. The scale here is just staggering.

**JORDAN**: What I found really interesting was their GPU utilization rate - 97.5% globally. When you've got that kind of utilization, it means demand is absolutely crushing supply. And when GPUs came up for renewal in Q4, 49% of customers renewed for 92% of the capacity. The GPUs that weren't renewed? They got sold to other customers in the same quarter.

**ALEX**: That's a great point about the supply-demand imbalance. But let's not forget Oracle isn't just an infrastructure play. Mike Sicilia talked about their applications business, which grew 10% to $4.1 billion in revenue. They're embedding AI agents directly into their software - over 1,000 AI agents across their application suites.

**JORDAN**: And this is where Oracle's full-stack approach really shines. They're not just providing the infrastructure to run AI - they're building AI directly into the business applications that companies use every day. Sicilia mentioned they're introducing new pricing models too, including outcome-based pricing and token bundles for AI capabilities.

**ALEX**: The token bundles are particularly interesting - it's like buying prepaid minutes for AI ser

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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we turn complex corporate calls into clear insights. I'm Alex, and joining me as always is my co-host Jordan. Today we're diving into Oracle's Q3 2026 earnings call, and wow, what a quarter this was for the database giant.

Before we jump in, I need to share our standard disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex, and you're absolutely right - this was quite the quarter for Oracle. Let me start with the headline numbers because they're pretty impressive. For the first time in over 15 years, Oracle hit a major milestone with both organic total revenue and non-GAAP earnings per share growing at 20% or better in USD. That's a significant acceleration.

**ALEX:** That's huge, Jordan. And what's driving this growth? It seems like Oracle is really firing on all cylinders here.

**JORDAN:** Exactly. There are two standout segments that are just exploding. Their multicloud database revenue grew 531% year-over-year - that's not a typo, five-hundred-thirty-one percent. And their AI infrastructure revenue grew 243% year-over-year. These aren't just growth numbers, these are transformation numbers.

**ALEX:** Those are mind-blowing growth rates. But let's talk about what's actually happening operationally. It sounds like Oracle has been busy expanding their reach beyond just their own cloud.

**JORDAN:** That's the key insight here, Alex. Oracle has been strategic about bringing their database services to other clouds - Microsoft Azure, Google Cloud, and now Amazon AWS. Clay McGork, one of their CEOs, mentioned they now have global region coverage across all partner clouds. They went from 2 AWS regions at the start of Q3 to 8 by the end, and they're projecting 22 AWS regions by Q4.

**ALEX:** And this multicloud strategy seems to be unlocking pent-up demand. What did they say about their pipeline?

**JORDAN:** Here's where it gets really interesting - Oracle reported a remaining performance obligation, or RPO, of $553 billion. That's essentially contracted future revenue. The demand for AI infrastructure is so strong that they literally have more demand than they can supply right now.

**ALEX:** Speaking of AI infrastructure, I noticed Oracle made some interesting strategic moves this quarter. Can you walk us through the TikTok situation?

**JORDAN:** Absolutely. Oracle secured a 15% stake in the newly independent TikTok US entity, which separated from ByteDance in January. This gives Oracle not just continued revenue from providing TikTok's technology services, but also equity upside from their board seat and ownership stake. It's a clever way to diversify their revenue streams.

**ALEX:** And they've been busy on the financing front too, right?

**JORDAN:** Huge developments there. Oracle announced a $50 billion financing initiative and has already secured $30 billion through bonds and convertible preferred stock. But here's the really smart part - CFO Doug Caring explained that over 90% of their data center capacity investments are being funded by partners. So Oracle is scaling their AI infrastructure without taking on the full capital burden themselves.

**ALEX:** That's brilliant financial engineering. Now, there was some interesting discussion about AI potentially disrupting the SaaS industry. What was Oracle's take on this?

**JORDAN:** This was one of my favorite parts of the call. CEO Mike Cecilia directly addressed what he called the "reported SaaS apocalypse" - this theory that AI coding tools will kill traditional software companies. His response was basicall

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**Beta Finch: NVIDIA Q2 FY2027 Earnings Breakdown**

ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

JORDAN: And I'm Jordan. Today we're diving into NVIDIA's fiscal Q2 2027 print — and there's a lot to unpack.

ALEX: Before we get into it — quick note. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Alright, with that out of the way — Alex, NVIDIA just put up $96 billion in quarterly revenue. That's more than double year-over-year.

ALEX: And it's the fourth straight quarter of accelerating growth, which is honestly wild for a company already this large. Data center revenue alone hit $89 billion, up 18% sequentially. Split that into two buckets: hyperscale revenue was $49 billion, up 13%, and then this other segment they call ACIE — that's NeoClouds, enterprise, sovereign AI — came in at $40 billion, up 25% sequentially and 138% year-over-year.

JORDAN: That ACIE number jumps out to me. It's growing faster than the hyperscale business, and CFO Colette Kress made a point of saying it now represents roughly half of NVIDIA's data center business. That's not a side hustle anymore — sovereign AI alone tripled year-over-year.

ALEX: Right, and they're guiding Q3 revenue to $108 billion, plus or minus 2%. For the full fiscal year 2028, they're now projecting about 70% revenue growth — but here's the catch, Jordan.

JORDAN: The catch is that's a supply-constrained number, not a demand number. Jensen Huang was pretty blunt on the call — actual demand is closer to 100% growth. They simply can't build enough. Every cloud they serve is fully utilized.

ALEX: Which is a good problem to have, but it does mean gross margins are getting squeezed. Memory pricing — DRAM specifically — has spiked way beyond what they expected. Gross margin is guided down to 74% in Q3, and they said it'll bottom out around 71-72% in Q4 before recovering to 72-73% next fiscal year once price increases kick in.

JORDAN: That's the number I think investors are going to fixate on. Component costs eating into margins is a real headwind, even with revenue this strong.

ALEX: Let's talk strategy, because there's a lot of new stuff here. First, the AWS expansion — Amazon's deploying an additional 2 million GPUs through fiscal 2029, plus their new Vera CPUs, some paired with the upcoming Rubin GPU.

JORDAN: And Vera Rubin itself is the big story architecturally. They started production shipments this month, and Jensen's calling it the fastest product ramp in company history — already has purchase orders from every major hyperscaler, cloud, and OEM. The pitch is 30x higher throughput per megawatt and 35x lower token cost versus the previous Blackwell Ultra generation.

ALEX: There's also this revenue-per-gigawatt trend they keep highlighting. Hopper was about $18 billion of NVIDIA revenue opportunity per gigawatt of data center capacity. Blackwell pushed that to $25 billion. Vera Rubin is $40 billion.

JORDAN: That's the flywheel — each generation captures a bigger slice of the data center build-out, not just GPUs but CPUs, networking, even their new Groq LPU line for high-speed inference. It's less "sell a chip" and more "sell the whole factory."

ALEX: Speaking of financing — this is where it gets a little more complicated. NVIDIA disclosed nearly $50 billion invested directly into frontier AI labs, plus new financing partnerships with six major capital providers — Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, KKR — aiming to raise over $500 billion in third-party capital for AI infrastructure.

JORDAN: And they address

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# Beta Finch Podcast Script: Nvidia Q1 2027 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we decode the numbers that matter. I'm Alex, and I'm here with my co-host Jordan. Today we're diving into Nvidia's absolutely mind-blowing Q1 2027 results that just dropped. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: Thanks Alex. And wow, where do we even begin with these numbers? Nvidia just reported $82 billion in quarterly revenue - that's up 85% year-over-year and 20% sequentially. To put that in perspective, they added $13.5 billion in revenue in just one quarter, which they're calling a record sequential increase.

**ALEX**: It's absolutely staggering, Jordan. And what really caught my attention is that this marks their third consecutive quarter of year-over-year acceleration. When you're already at this massive scale, continuing to accelerate growth is almost unprecedented. Their data center revenue alone hit $75 billion, up 92% year-over-year.

**JORDAN**: The Blackwell architecture is really the star of the show here. CEO Jensen Huang called it "the fastest product ramp in our company's history." What's interesting is they're seeing demand from everywhere - hyperscalers, AI cloud providers, sovereign customers, even enterprise and industrial applications.

**ALEX**: Speaking of segmentation, Jordan, they made some pretty significant changes to how they report their business. They've broken their data center segment into two main categories: Hyperscale and something they're calling ACIE - which stands for AI clouds, industrial, and enterprise. What's your take on this restructuring?

**JORDAN**: It's actually brilliant strategic positioning, Alex. The Hyperscale segment, which includes the big public cloud providers, generated $38 billion and grew 12% quarter-over-quarter. But here's what's really exciting - that ACIE segment hit $37 billion and grew 31% quarter-over-quarter. This shows Nvidia isn't just dependent on the big tech giants anymore.

**ALEX**: Exactly. And Jensen Huang was pretty eloquent about this during the Q&A. He explained that AI is incredibly diverse - from language models to 3D graphics for manufacturing, to proteins for life sciences. The applications run everywhere from hyperscale clouds to enterprise on-premises to industrial facilities. Nvidia is positioning itself as the only company that can serve all these different use cases with their full-stack solution.

**JORDAN**: What absolutely blew my mind was their announcement about Vera - their new CPU designed specifically for agentic AI. Jensen said this opens up a brand new $200 billion total addressable market that they've never addressed before. And get this - they're projecting nearly $20 billion in CPU revenue visibility just this year.

**ALEX**: That's a massive new growth driver, Jordan. And Jensen was really passionate explaining how agentic AI works differently. He described agents as essentially having "harnesses" around AI models that handle orchestration, memory management, and tool use - and all of that runs on CPUs. With billions of potential agents in the future, each needing their own computational resources, you can see why this CPU opportunity is so massive.

**JORDAN**: The financial metrics are just incredible across the board. They generated a record $49 billion in free cash flow, up from $35 billion in Q4. And speaking of returning value to shareholders - they're increasing their quarterly dividend from one cent to 25 cents per share, plus announcing an $80 billion share repu

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# Beta Finch Podcast Script: NVIDIA Q4 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into NVIDIA's absolutely massive Q4 2026 results that just dropped. Jordan, before we get started, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex. And wow, where do we even start with these numbers? NVIDIA just reported Q4 revenue of $68 billion - that's up 73% year-over-year and they added $11 billion in sequential growth. This is a company that's now doing nearly $200 billion in annual data center revenue alone.

**ALEX:** Right, and what's really striking is the acceleration. They went from strong growth in Q3 to even stronger growth in Q4. The data center business hit $62 billion for the quarter, up 75% year-over-year. But Jordan, what caught my attention was their guidance for Q1 - they're calling for $78 billion in revenue, which would be another massive jump.

**JORDAN:** Exactly, and that guidance assumes zero revenue from China, which is important context given the ongoing trade restrictions. But let's talk about what's driving this growth - it's really the Blackwell architecture that's just taken off. Jensen mentioned they have 9 gigawatts of Blackwell infrastructure already deployed, and here's the kicker - even their six-year-old Ampere chips are sold out in the cloud.

**ALEX:** That supply constraint theme runs throughout this call. Colette Kress mentioned they've strategically secured inventory and purchase commitments extending into calendar 2027 - that's much further out than usual and reflects the unprecedented demand visibility they're seeing. Speaking of segments, their networking business was a real standout, hitting $11 billion in revenue, up more than 3.5x year-over-year.

**JORDAN:** And that networking growth ties directly into their "AI factory" strategy. Jensen kept emphasizing this concept that in the new world of AI, compute literally equals revenue. When companies can generate tokens faster and more efficiently, that directly translates to higher revenues. It's why their customers are so willing to spend massive amounts on infrastructure.

**ALEX:** Speaking of spending, the numbers Jensen threw out about cloud provider CapEx were staggering. He said analyst expectations for 2026 CapEx across the top five cloud providers are approaching $700 billion - that's up $120 billion just since the start of the year. But there's something bigger happening here with what they're calling "agentic AI."

**JORDAN:** Right, this was probably the most important strategic theme of the call. Jensen talked about how we've hit an inflection point with AI agents - systems like Claude Code and OpenAI Codex that can actually take on complex, long-running tasks. He mentioned these agents are being used extensively by NVIDIA's own engineers, and the demand for the compute power to run them is going exponential.

**ALEX:** And they're betting big on this trend. NVIDIA announced a $10 billion investment in Anthropic this quarter, deepening their partnerships with all the major AI players. They're also working closely with OpenAI, Meta's expanding their deployment to millions of GPUs, and they even acquired talent from Groq to enhance their inference capabilities.

**JORDAN:** Let's talk about their next-generation platform - Rubin. They unveiled this at CES with six new chips, and Jensen claims it will train models with one-fourth the number of GPUs compared to Blackwell and reduce infere

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown for the companies moving the market. Today we're digging into ServiceNow's second quarter 2026 results, and this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: And Alex, this was a genuinely loaded call. Bill McDermott came out swinging, comparing ServiceNow's trajectory to a seven-year-old prediction that they'd be "the defining enterprise software company of the 21st century." Bold claim, but the numbers actually back it up this quarter.

ALEX: Let's start with the headline stuff. Subscription revenue hit $3.877 billion, up 23% year-over-year in constant currency — that's a full point and a half above the high end of their own guidance. Current RPO, which is basically their forward-looking bookings number, came in at $13.2 billion, up 21.5%, beating guidance by 200 basis points.

JORDAN: And operating margin at 29.5%, three points above guidance. That's the kind of beat-and-raise quarter that gets analysts excited. They also had 123 deals over $1 million in net new ACV, up 40% year-over-year. This wasn't a company squeaking by — it was outperformance across literally every metric they guided to.

ALEX: The AI story is really what everyone wants to talk about though. ServiceNow AI ACV crossed $1 billion this quarter, and they're still tracking toward their $1.5 billion target by end of year. Gina Mastantuono, the CFO, said net new AI ACV growth accelerated over 40% quarter-over-quarter.

JORDAN: What stood out to me is the adoption data. The number of customers with agentic AI actually in production has grown 9x in the last nine months. And first-time agentic AI buyers among renewal customers doubled both quarter-over-quarter and year-over-year. That's not just existing customers upgrading — that's genuinely new demand entering the funnel.

ALEX: Let's talk cybersecurity, because Bill spent a shocking amount of airtime on this. He said ServiceNow's security business is now the fastest-growing among the top ten cyber companies, built on the recent Armis and Veza acquisitions layered on top of their existing risk and compliance business.

JORDAN: Right, and the framing was interesting — Veza handles identity across humans, machines, and AI agents, while Armis tracks physical devices, already monitoring 7 billion of them in real time. Bill's pitch is that as AI agents proliferate — he cited a stat of 2.2 billion new AI identities entering the enterprise — someone needs to govern all of it. That's their "AI Control Tower" pitch, essentially a command center for visibility across every AI system, native or third-party.

ALEX: It's a smart positioning move. Instead of competing directly with the hyperscalers or the model labs, they're saying "we don't care who wins the AI race, we're the governance layer everyone needs regardless."

JORDAN: There was also real color on the CRM side, which people forget ServiceNow is even in. It's now a $2 billion ACV business, and average deal size doubled year-over-year. The standout anecdote was a large airline running voice AI customer service through ServiceNow, handling 5 million annual calls already in year one.

ALEX: On the analyst Q&A, Tyler Radke from Citi pushed on something worth flagging for listeners — the full-year revenue guidance raise was actually pretty modest relative to how strong Q2 looked. Gina explained that roughly half of the Q2 beat was just timing — some federal on-prem revenue pulled forward from Q3 into Q2 — and she said she's being deliberately conservative on the back half.

JORDAN: That's a good example of reading past the headline beat. It's not that the underlying business is w

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# Beta Finch Podcast Script: ServiceNow Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into ServiceNow's Q1 2026 results, and wow - there's a lot to unpack here.

**JORDAN:** There really is, Alex. And before we jump in, I want to make sure our listeners know that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX:** Thanks for that, Jordan. So let's start with the headline numbers because ServiceNow delivered what CEO Bill McDermott called a "beat and raise" quarter.

**JORDAN:** Right, they beat across the board. Subscription revenue hit $3.67 billion, growing 19% year-over-year in constant currency - that's above the high end of their guidance. And their remaining performance obligations, or RPO, grew 23.5% to $27.7 billion. That's a massive backlog of contracted revenue.

**ALEX:** The numbers are solid, but what's really interesting is the AI story here. McDermott dropped a pretty big bombshell on the call - they're now forecasting $1.5 billion in AI-specific commitments for 2026, up from their original $1 billion target. That's a 50% increase!

**JORDAN:** That's huge, Alex. And it's not just talk - they're seeing real traction. Now Assist, their AI product suite, had deals with 3 or more products growing nearly 70% year-over-year. They had 36 deals with 5 or more AI products. Customers are clearly moving beyond just experimenting with AI.

**ALEX:** Let's talk about their M&A strategy because they've been very active. They just closed three major acquisitions - Moveworks, Veza, and Armis. McDermott was particularly excited about the Moveworks integration.

**JORDAN:** Yeah, the Moveworks story is pretty remarkable. They integrated it with their employee experience platform in just three weeks and rebranded it as "Employee Works." In Q1 alone, they closed more deals than Moveworks did in their entire previous year. That's execution at its finest.

**ALEX:** And then there's Armis, which McDermott called their potential "Instagram" - referring to how that acquisition transformed Facebook. Armis brings cybersecurity visibility across IT, operational technology, and IoT devices. Given that cybercrime is now a trillion-dollar economy, the timing seems perfect.

**JORDAN:** What I found fascinating was McDermott's framing of their "AI control tower for business reinvention." They're positioning ServiceNow as the orchestration layer that manages both human workers and AI agents. With 2.2 billion more AI agents expected in the workforce over the next few years, that's a massive opportunity.

**ALEX:** The technical differentiation is interesting too. They're emphasizing their "context engine" - basically, 22 years of enterprise workflow data training their AI. As McDermott put it, "There's a perfect correlation between enterprise AI from any source and ServiceNow's expansion."

**JORDAN:** Speaking of expansion, their hybrid pricing model is gaining traction. Fifty percent of new business now comes from non-seat-based pricing, including usage-based models. That's important because it lets them scale with AI adoption rather than just traditional user growth.

**ALEX:** Now, let's address the elephant in the room - the stock dropped about 12% after hours despite these strong results. One analyst pressed them on this disconnect.

**JORDAN:** Yeah, Keith Weiss from Morgan Stanley asked a great question about when ServiceNow will participate in the AI boom in a way that's more analogous to the big AI labs that are seeing massive revenue spikes. There seems to be some investor anxiety about whether ServiceN

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# Beta Finch Podcast Script: ServiceNow Q4 2025 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and I'm here with my co-host Jordan to dive into ServiceNow's Q4 2025 results. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: Thanks Alex! And wow, what a quarter ServiceNow just delivered. CEO Bill McDermott came out swinging right from the opening remarks, essentially saying "Here are the facts" to counter what he called "speculation everywhere." This feels like a company that's tired of being misunderstood by the market.

**ALEX**: Absolutely! Let's start with the numbers because they're pretty impressive. Q4 subscription revenue hit $3.47 billion, growing 19.5% year-over-year in constant currency - that's 150 basis points above the high end of their guidance. And their remaining performance obligations, or RPO, grew 21% to over $28 billion. Jordan, what stood out to you?

**JORDAN**: The acceleration story is huge here. Net new Annual Contract Value growth actually accelerated both quarter-over-quarter and year-over-year. That's not something you see often in mature software companies. And get this - they had 244 deals greater than $1 million in net new ACV, including seven deals over $10 million. That suggests enterprises are making serious platform bets on ServiceNow.

**ALEX**: Right, and let's talk about their AI momentum. Now Assist, their AI product suite, surpassed $600 million in ACV and is tracking toward their $1 billion target for 2026. McDermott mentioned they had 35 deals over $1 million for Now Assist in Q4 alone, with some customers expanding their AI usage by 13 times upon renewal.

**JORDAN**: That renewal expansion story is fascinating. CFO Gina Mastantuono mentioned that customer service Now Assist deals saw over 70% upsell expansion at renewal in Q4. This suggests customers aren't just trying AI - they're getting real value and wanting more. It's moving from proof-of-concept to production scale.

**ALEX**: Now, let's address the elephant in the room - the recent acquisitions. ServiceNow has been busy, acquiring Moveworks, and announcing plans to acquire VESA and ARMS. McDermott was pretty defensive about this, pushing back against speculation that M&A was driven by necessity.

**JORDAN**: He was very clear about their strategy here. McDermott emphasized they've never acquired for revenue alone, and these acquisitions are about expanding their Total Addressable Market to over $600 billion. The story he's telling is about creating an "AI control tower" for enterprises - combining visibility from ARMS, identity governance from VESA, and orchestration from ServiceNow's platform.

**ALEX**: The security angle is interesting. Their security and risk business already generates over $1 billion in ACV and grew nearly 40% year-over-year. With these acquisitions, they're essentially saying they want to be the comprehensive security platform for what they call the "agentic AI world" - where AI agents are running business processes autonomously.

**JORDAN**: Speaking of autonomous AI, I loved McDermott's explanation of why AI needs workflow orchestration. He said AI is "probabilistic" - meaning uncertain outcomes - while workflow orchestration is "deterministic" - predictable and governed. That's actually a compelling argument for why AI doesn't replace platforms like ServiceNow, but rather depends on them.

**ALEX**: The customer examples were pretty compelling too. One stood out where a consumer services company achieved 400% ROI and needed eight times more AI assists after a year. They're flipping from 80% human-led support to 80% automated. That

This episode includes AI-generated content.

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into Netflix's Q2 2026 numbers, and there's a lot to unpack here.

Before we dive in, quick disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Alright Alex, let's start with the topline. Revenue growth is guided at 12% for Q3, 11% FX-neutral, which is a slight deceleration from Q2's 12%. Some analysts flagged that.

ALEX: Right, but CFO Spencer Neumann pretty much waved that off. His point was they don't manage quarter to quarter — they manage to the full year. And the full year guide is 13-14% top-line growth, roughly $6 billion in incremental revenue.

JORDAN: And the context he gave was pretty staggering. They're calling themselves "still just getting started" — under 45% penetrated into their addressable 800 million households, and only capturing about 7% of a $670 billion addressable revenue market. That's a big runway claim.

ALEX: It is. Let's talk engagement, because this was clearly the hot topic on the call — multiple analysts pushed on viewing hours softening. Co-CEO Greg Peters gave this whole framework: quality, variety, quantity, and made the point that not all hours are created equal.

JORDAN: The live programming example was the standout for me. Live is about 5% of their content budget but only 1% of view hours — yet six of the top ten sign-up days in the last five years came from live events. Compare that to animation and kids' content, same 5% of spend, but 8% of view hours. Totally different jobs for the content to do.

ALEX: And the actual number — view hours grew 2% in the first half of 2026, a slight acceleration from 1.5% last year. So the "engagement is dying" narrative doesn't really hold up in the data they're showing.

JORDAN: Ted Sarandos also pushed back hard on the Season 2 drop-off question — said their second-season fall-off is actually slightly improved year over year, no change in release strategy needed.

ALEX: Let's get into content spend, because that's where the checkbook talk gets interesting. Content expense is up about 10% this year — higher than their five-year average of 8%, but still below the 14% decade average. So spend is accelerating a bit, but they're framing it as disciplined, growing slower than revenue.

JORDAN: And the slate highlights were fun — "I Will Find You" was their biggest original series launch this year, "Swapped" is tracking to be their second-biggest animated film ever behind K-Pop: Demon Hunters. Plus some great international examples — a Zimbabwean novel adapted into a South African hit called "The Polygamist," and "Rosario Tijeras" in Latin America getting a Season 6 greenlight.

ALEX: That global content engine is really Netflix's moat at this point. Now, let's talk monetization — ads and pricing. Greg Peters said they manage the ads business for total revenue growth, and there's still a gap between ad-tier ARM and the standard-without-ads tier ARM. He's framing that gap as "under-realized revenue" — basically future growth already baked into the roadmap as they close it.

JORDAN: On pricing, first-half price increases in the U.S., Mexico, and Spain are going "consistent with expectations" — no surprises there. And Peters made a value argument too — saying Netflix subscribers pay the least per hour of viewing compared to other SVOD services, with the ad tier at $8.99 in the U.S. being what he called an incredible entry point.

ALEX: Let's touch on some of the newer bets — gaming and AI. Cloud gaming had a strong quarter: FIFA and Unhinged were their two most successful cloud game debuts, and monthly active players for cloud games are up 11x since O

This episode includes AI-generated content.