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ServiceNow

ServiceNow (NOW) Q2 2026 Earnings

Reported Jul 22, 2026 at 4:11 PM ET · SEC Source

Q2 26 EPS

$0.90

BEAT +5.09%

Est. $0.86

Q2 26 Revenue

$3.99B

BEAT +1.52%

Est. $3.93B

vs S&P Since Q2 26

-2.9%

TRAILING MARKET

NOW -2.8% vs S&P +0.1%

Market Reaction

Did NOW Beat Earnings? Q2 2026 Results

ServiceNow delivered a clean beat to open its second quarter of fiscal 2026, with non-GAAP EPS of $0.90 topping the $0.86 consensus by 5.09% and revenue of $3.99 billion growing 24.0% year-over-year to edge past estimates by 1.52%, extending the comp… Read more ServiceNow delivered a clean beat to open its second quarter of fiscal 2026, with non-GAAP EPS of $0.90 topping the $0.86 consensus by 5.09% and revenue of $3.99 billion growing 24.0% year-over-year to edge past estimates by 1.52%, extending the company's streak of beating consensus EPS forecasts to four consecutive quarters. The headline driver was broad-based demand amplified by accelerating AI adoption, with ServiceNow AI crossing $1.00 billion in annual contract value and agentic deployments increasing ninefold over nine months; an additional tailwind came from U.S. Federal customers pulling on-premise subscription revenues forward from Q3 into Q2. Subscription revenues of $3.88 billion grew 24.5% year-over-year, and current remaining performance obligations reached $13.20 billion, up 21%. For investors watching the stock closely, the company also raised its full-year 2026 subscription revenue guidance to $15.76 to $15.78 billion, representing approximately 22.5% growth, while reaffirming a long-term target of $30.00 billion or more in subscription revenues by 2030.

Key Takeaways

  • • ServiceNow AI crossed $1 billion in annual contract value
  • • Agentic deployments of ServiceNow AI increased ninefold in nine months
  • • 123 transactions over $1 million in net new ACV, growing nearly 40% year-over-year
  • • 658 customers with more than $5 million in ACV, approximately 23% year-over-year growth
  • • Strong U.S. Federal demand accelerated on-premise subscription revenues from Q3 into Q2
  • • AI Control Tower supercharging Security and Risk business
  • • ITOM seeing strong demand tailwinds for the CMDB as governance and data foundation

NOW Forward Guidance & Outlook

ServiceNow raised its full-year 2026 subscription revenue guidance to $15,760–$15,780 million, representing approximately 22.5% year-over-year growth (21% in constant currency). For Q3 2026, subscription revenues are guided to $3,975–$3,980 million (~20.5% YoY growth, 20% constant currency), with cRPO growth of 19.5% (20% constant currency). Q3 non-GAAP operating margin is guided at 31%. Full-year 2026 non-GAAP subscription gross margin is expected at 81%, non-GAAP operating margin at 31.5%, and non-GAAP free cash flow margin at 35%. The company flagged incremental FX headwinds from USD strengthening, estimated at approximately $35 million for Q3 2026 cRPO. Q2 outperformance was partly driven by U.S. Federal demand pulling on-premise subscription revenues forward from Q3. Long-term targets shared at Financial Analyst Day include $30 billion+ in subscription revenues, 30% of ACV from AI, and a Rule of 60+ by 2030, plus a commitment to reduce stock-based compensation to less than 10% of revenue by 2029.

24/7 Wall St

NOW YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

NOW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“ServiceNow's exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company. The company's sterling fundamentals have us operating to the Rule of 56, well on our way to the Rule of 60. With our AI Control Tower as the market standard, agentic deployments of ServiceNow AI increased ninefold in just nine months. Our $29 billion in remaining performance obligations is fueled by longer customer commitments and skyrocketing demand from our partner ecosystem. We are who we said we were: a defining company that is only just getting started.”

— Bill McDermott, Q2 2026 Earnings Press Release

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