EarningsQ2 2026 Earnings Report
MX:NOWW Q2 2026 EPS Results
Actual EPS$16.36
Consensus EPS$15.67
Beat/MissBeat by +$0.69
One Year Ago EPS$14.87
MX:NOWW Q2 2026 Revenue Results
Actual Revenue$72.48B
Expected Revenue$71.39B
Beat/MissBeat by +$1.09B
YoY Revenue Growth+24.01%
Earnings Announcement Details
QuarterQ2 2026
Date07/22/2026
TimeAfter Close
Conference CallWednesday, July 22, 2026
MX:NOWW Upcoming Earnings
ServiceNow's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:NOWW Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong set of operational and financial results with broad-based demand, accelerating AI monetization, large deal momentum and profitability outperformance. Management raised FY guidance modestly while calling out that part of the beat was timing-related (on‑prem pull‑forward) and acknowledged short-term gross margin pressure from hyperscaler and AI consumption ramps. Key risks include near-term margin variability, integration and headcount impacts from recent acquisitions, and general competitive/market noise, but management emphasized durable renewal rates, platform differentiation and robust AI/security tailwinds.Company Guidance
Strong Subscription Revenue Growth
Subscription revenues of $3.877 billion in Q2, up 23% year-over-year in constant currency and ~150 basis points above the high end of guidance.
RPO / CRPO Momentum
Total RPO ~ $29 billion, up ~22% year-over-year in constant currency; Current RPO $13.2 billion, up 21.5% YoY in constant currency and ~200 basis points above guidance; CRPO growth 21.5% CC (more than 2 points above guidance).
Profitability Outperformance and Raised Margin Targets
Non-GAAP operating margin of 29.5% in Q2, 300 basis points above guidance. Company raised full-year operating margin guidance to 31.5% and is guiding to strong free cash flow conversion for the year (company-stated FCF margin target of 35% for FY2026).
Large Deal Activity and Enterprise Traction
123 deals >$1 million in net new ACV (up 40% YoY). 658 customers generating >$5 million ACV; 32 additional customers crossed >$20 million ACV since last year. ITSM and security solutions featured in the majority of top deals.
AI Adoption and Monetization Acceleration
ServiceNow AI ACV exceeded $1 billion in the quarter and is tracking to outperform the $1.5 billion target by end of 2026. AI net new ACV growth accelerated sequentially (>40% QoQ); deals including 5+ ServiceNow AI products grew 5.5x YoY; number of customers with agentic AI in production grew 9x over the past 9 months; first-time ServiceNow agentic AI buyers grew >45% YoY. Upgrades to new AI SKUs driving price uplift in line with 20%–30% framework.
Product & Industry Wins Demonstrating Platform Value
Notable customer deployments (Department of the Air Force, Experian, Maybank, large airline running 5M voice calls/year on ServiceNow voice AI CRM agents) and strong momentum for Employee Works (deal volume up >150% QoQ) and Raptor DB Pro (deal volume up 80% YoY).
Raised Full-Year and Q3 Guidance
Full-year subscription revenue midpoint increased by $15 million to $15.770 billion (21% YoY constant currency). Q3 subscription revenue guidance $3.975B–$3.980B (~20% YoY CC); Q3 operating margin guidance 31%; CRPO growth expected ~20% CC.
Security & Platform Differentiation
Company highlights security and risk as a growth engine (claims to be an eight-figure cybersecurity business and the fastest-growing among top enterprise cyber companies), strengthened by acquisitions (Armis, Vesa) and the ServiceNow AI Control Tower as an integrated governance and action layer.
MX:NOWW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed