ServiceNow is scheduled to report its Q3 2026 earnings today at 4:10 PM ET, with investors looking for evidence that its growing AI business can support its premium valuation.
Management previously guided for $3.975-$3.980 billion in subscription revenue, although comparisons could be complicated by federal on-premise revenue shifting into the previous quarter.
ServiceNow’s AI business recently surpassed $1 billion in annual contract value, making continued adoption of its agentic AI products a major focus tonight.
Another important metric will be current remaining performance obligations (cRPO), with management guiding for 19.5% growth, compared to 21% last quarter.
With NOW trading at around 99x earnings, expectations remain high. Strong subscription growth and AI adoption could reinforce the company’s ambitious long-term targets, while disappointing contract growth could raise fresh concerns about the software industry.
This article is updated throughout the trading day. Check back for more.
ServiceNow (NYSE:NOW | NOW Price Prediction) is expected to report third-quarter results today at 4:10 PM ET. Shares are down 3.77% today, but up 11.12% over the past month, so the bar is higher for a quarter where management guided cRPO growth lower.
ServiceNow beat on both revenue and earnings in Q2. EPS came in at $0.90 against a $0.8564 consensus, and revenue rose 24.0% to $3.987B. Non-GAAP operating margin reached 29.5%, which was 300 basis points above guidance.
The stock gained 19.72% in the week after that report. Even so, shares are still down 1.63% year to date and 20.37% over the past year. Management raised full-year subscription guidance to $15.76 to $15.78 million. The CFO called the federal shift “simply about timing.”
Acquisitions are weighing on GAAP results. GAAP subscription gross margin fell to 73.5% from 80% as amortization of purchased intangible assets rose.
| Metric | Q3 2026 Estimate | YoY Change | FY 2026 Estimate | FY 2027 Estimate |
|---|---|---|---|---|
| Revenue | $4.09B | +20.2% | $16.22B | $19.28B |
| EPS (Normalized) | $1.02 | +6.1% | $4.07 | $5.00 |
Expected revenue growth of about 20% is below Q2’s 24.0% rate, which is consistent with the federal timing shift. EPS growth trails revenue growth (YoY comparisons against split-adjusted Q3 2025 EPS of $0.964) because guided operating margin of 31% sits below last year’s 33.5%. Q3 EPS estimates have barely changed in 90 days, moving from $1.0255 to $1.0231.
Here are some of the top items to watch for in ServiceNow’s earnings report tonight:
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 30-Day Move |
|---|---|---|---|---|
| Q2 2026 | +5.09% | +7.44% | +19.72% | +39.28% |
| Q1 2026 | +0.35% | +6.36% | +4.16% | +17.86% |
| Q4 2025 | +6.17% | +0.24% | -12.08% | -3.03% |
| Q3 2025 | +13% | -1.65% | -8.12% | -11.8% |
On average, shares moved 0.92% seven days after earnings over the past year.
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Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
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