Companies /Technology
ServiceNow Inc
NYSE: NOW Software - Application
$102.40
▲ $0.04 (+0.03%) today
Markets open · 1:26pm ET

ServiceNow (NOW) Q3 2026 Earnings

Reported Oct 28, 2026, 4:14pm ET · SEC source
$1.00
Miss −2.26%
EPS · est. $1.02 Adjusted
$4.1B
Beat +0.27%
Revenue · est. $4.1B
1 quarter
Consecutive EPS misses

How Did NOW Stock React to Q3 2026 Earnings?

% change · around the report
−10%0+10%Oct 28Oct 29report 4:14pm ETearnings−0.9%−16.9%
−10%0+10%Oct 28Oct 29earnings−0.9%−16.9%
NOW −16.9%S&P 500 −0.9%
−10%0+10%Oct 28Oct 29report 4:14pm ETearnings−2.7%−16.9%
−10%0+10%Oct 28Oct 29earnings−2.7%−16.9%
NOW −16.9%NASDAQ −2.7%
−20%0+20%Oct 27Nov 5report 4:14pm ETearnings−5.1%−20.3%
−20%0+20%Oct 27Nov 5earnings−5.1%−20.3%
NOW −20.3%S&P 500 −5.1%
−20%0+20%Oct 27Nov 5report 4:14pm ETearnings−10.5%−20.3%
−20%0+20%Oct 27Nov 5earnings−10.5%−20.3%
NOW −20.3%NASDAQ −10.5%
−26.95%
Day of report
−4.15%
Next session
−6.67%
One week

Did NOW Beat Earnings? Q3 2026 Results

No. ServiceNow reported Q3 2026 earnings of $1.00 a share on Oct 28, 2026, missing the $1.02 consensus estimate by 2.3%. Revenue was $4.1B against a $4.1B estimate.

ServiceNow delivered a mixed but broadly encouraging third quarter, posting revenue of $4.11 billion, up 20.5% year over year and edging past the $4.09 billion consensus by 0.27%, even as <a href="https://247wallst.com/investing/2026/10/28/live-will-servicenow-disappoint-in-q3-earnings-tonight-after-4-intraday-drop/">pre-earnings anxiety ran high</a> following a 4% intraday stock drop. Adjusted EPS of $1.00 missed the $1.02 consensus by 2.26%, snapping a six-consecutive-quarter streak of beating EPS estimates, with the shortfall tied largely to a surge in acquisition-related costs, including $198 million in purchased intangible amortization and $87 million in severance, that weighed on GAAP profitability. The AI narrative dominated the quarter; management raised its 2026 AI net new ACV target for the second time this year, now to $1.70 billion, and reported year-to-date agentic AI consumption in production up more than 13x year over year. cRPO reached $13.65 billion, up 20.5%, reinforcing demand visibility. Looking ahead, the company guided Q4 subscription revenue to $4.25 billion and raised its full-year free cash flow margin outlook by 100 basis points to 36%.

Key Takeaways
  • Subscription revenues grew 21% Y/Y to $3,988 million
  • AI net new ACV exceeded expectations; year-to-date agentic AI consumption in production up more than 13x Y/Y
  • 19 transactions over $5 million in net new ACV, up over 135% Y/Y
  • 680 customers with more than $5 million in ACV, up approximately 23% Y/Y
  • cRPO of $13.65 billion, up 20.5%; RPO of $29.7 billion, up 22%
  • Capex reduced to $91 million from $235 million a year ago

“This was more than another beat-and-raise quarter for ServiceNow, this was the inflection point for ServiceNow as the Super Intelligence Control Tower.”

ServiceNow CEO, on the earnings call

What Is ServiceNow's Outlook?

Q4 2026 guidance: - Subscription revenues of $4,245–$4,255 million, up 22.5%–23% (21.5% in constant currency). - cRPO growth of 18.5%. - Non-GAAP operating margin of 32%. - 1.05 billion diluted shares. Full-year 2026 guidance: - Subscription revenues of $15,780–$15,790 million, up 22.5% (21% in constant currency). - Non-GAAP subscription gross margin of 81%. - Non-GAAP operating margin of 31.5%. - Free cash flow margin of 36%, raised by 100 basis points. - 1.04 billion diluted shares. Other targets: the AI net new ACV target for 2026 was raised to $1.7 billion. The company reiterated a Rule of 57 for 2026 and a long-term Rule of 60+ target.

NOW YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$2.0B$4.0B$3.4B$4.1BRevenue$2.6B$2.9BGross Profit$572.0M$385.0MOperating Income$502.0M$277.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income
NOW income statement, Q3 2026 versus Q3 2025
Metric Q3 2026 Q3 2025 Year over year
Revenue $4.1B $3.4B +20.5%
Gross Profit $2.9B $2.6B +9.9%
Operating Income $385.0M $572.0M −32.7%
Net Income $277.0M $502.0M −44.8%

NOW Revenue by Segment

Subscription$4.0B+21.0%
Professional services and other$118.0M+10.0%

When Does ServiceNow Report Next?

Expected report date
After the close
Release timing

Figures from SEC filings and company reports. Not investment advice.