ServiceNow reported third-quarter results on Wednesday that blew past Wall Street’s estimates, with the company also approving a five-for-one stock split.

Shares rose 5%.

Here’s how the company did versus LSEG estimates.

• Earnings per share: $4.82 adjusted vs. $4.27 expected
• Revenue: $3.41 billion vs. $3.35 billion expected

Third-quarter subscription revenues, which account for the bulk of the enterprise software company’s sales, totalled $3.3 billion and surpassed a $3.26 billion estimate from StreetAccount. Overall revenues grew 22% from the year-ago period.

ServiceNow bumped up full-year guidance, saying it now expects subscription revenue to range between $12.84 billion and $12.85 billion for the year. Last quarter, the company raised FY guidance to a range of $12.78 billion to $12.80 billion.

Like many software companies, ServiceNow is benefitting from the artificial intelligence transformation that’s forcing more businesses to adopt the tools.

“Every enterprise in every industry is focused on AI as the innovation opportunity of our generation,” wrote CEO Bill McDermott in a release. He called the results the “clearest demonstration” that businesses are relying on ServiceNow for these capabilities.

Finance chief Gina Mastantuono told CNBC that the annual contract value for ServiceNow’s AI business is projected to surpass $500 million this year and on track toward the goal set at its investor day to reach $1 billion by 2026.

“The value AI is going to create in enterprise is like nothing that we’ve seen in a very, very long time,” she said. “We have real customers, it’s not just hype, and we have real values and we’re driving real outcomes for those customers.”

Net income hit $502 million, or $2.40 per share, up from $432 million, or $2.07 per share, during the same quarter in 2024. Current remaining performance obligations reached $11.35 billion.

ServiceNow said its fourth-quarter guidance accounts for ongoing U.S. government uncertainty and the recent shutdown. The company expects $3.42 billion to $3.43 billion in subscription revenues.

“Whenever the government reopens, the administration’s continued focus on cost efficiency and modernization aligns directly with our strengths,” she said, adding that ServiceNow’s U.S. federal business grew more than 30% in the third quarter.

ServiceNow’s board also approved a five-for-one stock split slated for the beginning of December. Mastantuono said the split will make shares accessible to more retail investors.

The stock is down about 13% year to date.