ServiceNow, Inc. Earnings Recaps
Q2 2026
Jul 25, 2026
Shares declined 9.9% as investors reacted negatively to a cautious outlook and the absence of new growth catalysts despite solid execution metrics. The market appears concerned that deceleration and margin pressure were downplayed in the commentary.
Key takeaways
- Subscription revenue growth was 23% in constant currency, slightly above the high end of guidance.
- Current remaining performance obligations (CRPO) rose 21.5% in constant currency, exceeding guidance by over 2 points.
- Operating margin improved to 29.5%, 3 points above guidance, reflecting strong cost discipline.
- Management highlighted AI and cybersecurity as growth engines but did not provide incremental upside guidance or specifics on accelerating growth trajectories.
- The 9.9% stock selloff suggests investors were disappointed by guidance tone or underlying deceleration risks not fully addressed on the call.
Q1 2026
Apr 23, 2026
ServiceNow delivered strong Q1 2026 results with revenue growth exceeding guidance, driven by robust subscription and customer expansion, amid a strategic focus on AI and security-driven market opportunities.
Key takeaways
- Subscription revenue increased 19% in constant currency, surpassing the high end of guidance, with 23.5% growth in RPO and a total of $28 billion.
- Customer spending over $1 million grew 130% YoY, with 16 deals over $5 million and five over $10 million in NNACV.
- Recent acquisitions like Armis and Veza accelerate ServiceNow’s AI security platform, integrating asset visibility and identity governance into a unified security stack.
- The company reinforced its strategic positioning in core IT, AI security, andworkflow automation, with a focus on expanding enterprise AI adoption.
- Full-year guidance and strategic initiatives remain on track, with upcoming Investor Day emphasizing continued growth, margin expansion, and innovation.
Q3 2025
Oct 30, 2025
ServiceNow's Q3 2025 results significantly exceeded expectations, with a remarkable 20.5% year-over-year subscription revenue growth and a strengthened operating margin, underscoring its leadership in enterprise AI solutions.
Key takeaways
- Subscription revenue and current RPO growth both surged 20.5% year-over-year, outperforming guidance by 1 and 2.5 points, respectively.
- Operating margin improved to 33.5%, exceeding guidance by 3 points, while free cash flow margin stood at 17.5%.
- The company secured 103 deals exceeding $1 million in net new ACV, highlighting robust demand across its product offerings, particularly in technology workflows and AI solutions.
- ServiceNow's AI initiatives, including Now Assist, are projected to generate over $0.5 billion in ACV this year, on track to exceed the $1 billion target next year, reflecting strong momentum in enterprise AI transformation.
- Continued innovation and strategic partnerships position ServiceNow as a pivotal player in the rapidly evolving AI ecosystem, solidifying its status among the "Super 8" of enterprise software.