Q1 26 EPS
$0.97
BEAT +0.35%
Est. $0.97
Q1 26 Revenue
$3.77B
BEAT +0.65%
Est. $3.75B
vs S&P Since Q1 26
+5.3%
BEATING MARKET
NOW +9.6% vs S&P +4.3%
Market Reaction
Did NOW Beat Earnings? Q1 2026 Results
ServiceNow kicked off fiscal 2026 with a clean beat across the board, posting adjusted diluted EPS of $0.97 against a consensus estimate of $0.97, a 0.35% beat that extended the company's streak of consecutive quarterly EPS beats to four. Total reven… Read more ServiceNow kicked off fiscal 2026 with a clean beat across the board, posting adjusted diluted EPS of $0.97 against a consensus estimate of $0.97, a 0.35% beat that extended the company's streak of consecutive quarterly EPS beats to four. Total revenue climbed 22.1% year-over-year to $3.77 billion, edging past the $3.75 billion consensus by 0.65%, with subscription revenues of $3.67 billion doing the heavy lifting. The primary engine was accelerating AI adoption, as Now Assist customers spending more than $1 million in annual contract value surged over 130% year-over-year, underscoring deepening enterprise commitment to the platform. Non-GAAP operating margin expanded to 32%, up from 31% a year ago, while current remaining performance obligations grew 22.5% to $12.64 billion. Looking ahead, ServiceNow raised its full-year 2026 subscription revenue guidance to $15.73 billion to $15.78 billion, though management flagged near-term margin pressure from integrating the recently closed Armis acquisition, with those headwinds expected to normalize by fiscal 2027.
Key Takeaways
- • Now Assist customers spending over $1 million in ACV grew over 130% year-over-year
- • 16 transactions over $5 million in net new ACV, representing nearly 80% YoY growth
- • 630 customers with more than $5 million in ACV, approximately 22% YoY growth
- • 22% YoY subscription revenue growth (19% constant currency)
- • Non-GAAP operating margin expanded to 32% from 31% a year ago
- • Non-GAAP free cash flow of $1,665 million with 44% margin
NOW YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
NOW Revenue by Segment
With YoY comparisons, source: SEC Filings
“ServiceNow's first quarter performance beat the high end of our guidance once again. Since our founding, we've built our platform around the work customers need to accomplish. Today, they rely on ServiceNow to be their AI control tower for business reinvention. Customers trust our platform because we integrate with any model, cloud, interface, data, and system they choose to deploy. As new technologies create both opportunity and risk, our two decades of engineering combined with deep business context enable us to orchestrate and secure the agentic enterprise. With this foundation, our AI growth is far exceeding even our own expectations, reinforcing our position as one of the fastest growing enterprise software companies ever.”
— Bill McDermott, Q1 2026 Earnings Press Release
NOW Earnings Trends
NOW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NOW EPS Trend
Earnings per share: estimate vs actual
NOW Revenue Trend
Quarterly revenue: estimate vs actual
NOW Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.86 | $0.90 | +5.09% | $3.99B | +1.52% |
| Q1 26 BEAT | $0.97 | $0.97 | +0.35% | $3.77B | +0.65% |
| Q4 25 BEAT FY | $0.87 | $0.92 | +6.17% | $3.57B | +1.10% |
| FY Full Year | $3.41 | $3.51 | +2.87% | $13.28B | +0.27% |
| Q3 25 BEAT | $4.27 | $4.82 | +13.00% | $3.41B | +1.49% |
| Q2 25 BEAT | $3.57 | $4.09 | +14.63% | $3.22B | +2.92% |
| Q1 25 BEAT | $3.83 | $4.04 | +5.36% | $3.09B | +0.06% |