ServiceNow (NOW) Q2 2026: AI tops $1B as guidance rises
As seen on the 24/7 Wall St. homepage on July 22, 2026.
ServiceNow's AI business crossed $1 billion in annual contract value as the company delivered a double beat and lifted full-year subscription revenue guidance to $15.76 to $15.78 billion, with agentic deployments surging ninefold in nine months.
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ServiceNow reported Q2 2026 earnings per share of $0.90, topping the $0.8564 consensus estimate by roughly 5%. Revenue came in at $3.987 billion, about 1.5% ahead of the $3.927 billion Wall Street had expected, making it a clean double beat on both headline metrics.
The bigger story is the momentum inside the AI business. Annual contract value from AI crossed $1 billion, and agentic deployments surged ninefold over just nine months — a pace that signals enterprise customers are moving well past pilot programs. Management followed that up by lifting full-year subscription revenue guidance to a range of $15.76 to $15.78 billion.
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The earnings-per-share history adds context to the Q2 result. ServiceNow has now beaten EPS estimates in seven of the past eight quarters, with the lone miss being Q4 2024 when reported and estimated figures were both $0.73. The consistency of the beat streak, combined with the raised outlook, gives investors a clearer read on how durable the AI-driven growth cycle has become.
Mentioned: NOW