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Jul 23, 2026
ServiceNow (NOW) Delivers +24.5% Subscription Revenue Growth in Q2 and Raises Full-Year Outlook

ServiceNow (NOW) Delivers +24.5% Subscription Revenue Growth in Q2 and Raises Full-Year Outlook

Key Takeaways

  • Subscription revenues reached $3,877 million, up 24.5% year-over-year.
  • Total revenues hit $3,987 million, growing 24% from the prior year.
  • Current remaining performance obligations (cRPO) stood at $13.20 billion, up 21% year-over-year.
  • ServiceNow AI surpassed $1 billion in annual contract value (ACV).
  • The company beat the high end of guidance across all key metrics and raised its full-year subscription revenue outlook.
  • Remaining performance obligations (RPO) reached $29.0 billion, reflecting 21% year-over-year growth.

Earnings Context and Why It Matters

ServiceNow’s second quarter results, for the period ended June 30, 2026, come at a time when investors are closely watching how artificial intelligence is being adopted in enterprise software. The company has framed its platform as an AI control tower for business reinvention, and recent demand signals point to customers looking for governed, scalable AI deployments. I’m watching this closely because the consistent double-digit growth in subscription revenues, backed by expanding remaining performance obligations, gives a clear view into future revenue. These trends reflect ServiceNow’s ability to capture AI-driven spending while maintaining operating leverage in a competitive landscape.

Reported Results

ServiceNow reported subscription revenues of $3,877 million for Q2 2026, representing 24.5% year-over-year growth (23% in constant currency). Total revenues reached $3,987 million, up 24% year-over-year (22.5% in constant currency). The company exceeded the high end of its guidance range across topline and profitability metrics. Current remaining performance obligations totaled $13.20 billion, growing 21% year-over-year, while remaining performance obligations stood at $29.0 billion, also up 21%. ServiceNow AI crossed $1 billion in annual contract value during the quarter. The firm raised its full-year subscription revenue outlook following the strong performance. To put these numbers in broader context, I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.

Market Reaction and Investor Sentiment

Following the July 22, 2026 release, investor sentiment reflected optimism around the AI momentum and raised outlook. Shares showed positive movement as the results highlighted broad-based demand and execution strength. Analysts noted the company’s ability to deliver consistent beats and the significance of AI-related contract value growth in validating its strategic direction.

Exploring Opportunities with AI-Powered Screening

One tool I often turn to for deeper market analysis is Tickeron’s AI Screener. It is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. AI Screener

Forward Outlook and Key Factors to Monitor

ServiceNow raised its full-year subscription revenue guidance after beating expectations, signaling continued confidence in demand. Investors should watch the pace of AI net new annual contract value growth and adoption of new offerings such as the AI Control Tower and Autonomous Workforce specialists.

Partnership expansions with NVIDIA, Microsoft, AWS, and Accenture could drive further platform reach. Monitoring remaining performance obligations trends will provide insight into booking momentum and customer commitment lengths.

Operating leverage and margin expansion remain key themes, alongside any updates on stock-based compensation reduction targets outlined at the recent Financial Analyst Day. Industry dynamics in AI governance and enterprise workflow automation will also influence results in coming quarters.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

Related Ticker: NOW

Contributor

Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.


NOW in upward trend: price may jump up because it broke its lower Bollinger Band on July 22, 2026

NOW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 49 cases where NOW's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on July 28, 2026. You may want to consider a long position or call options on NOW as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for NOW just turned positive on July 28, 2026. Looking at past instances where NOW's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .

NOW moved above its 50-day moving average on July 27, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for NOW crossed bullishly above the 50-day moving average on August 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NOW advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 213 cases where NOW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for NOW moved out of overbought territory on August 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where NOW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NOW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.320) is normal, around the industry mean (28.402). P/E Ratio (78.088) is within average values for comparable stocks, (80.629). Projected Growth (PEG Ratio) (1.116) is also within normal values, averaging (1.710). Dividend Yield (0.000) settles around the average of (0.048) among similar stocks. P/S Ratio (8.834) is also within normal values, averaging (69.501).

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NOW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.

Notable companies

The most notable companies in this group are Shopify Inc (NASDAQ:SHOP), Salesforce (NYSE:CRM), Uber Technologies (NYSE:UBER), ServiceNow Inc. (NYSE:NOW), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Datadog (NASDAQ:DDOG), Autodesk (NASDAQ:ADSK), Workday (NASDAQ:WDAY), Atlassian Corp (NASDAQ:TEAM).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 10.17B. The market cap for tickers in the group ranges from 291 to 240.81B. SAP holds the highest valuation in this group at 240.81B. The lowest valued company is BLGI at 291.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was 2%. For the same Industry, the average monthly price growth was 3%, and the average quarterly price growth was 9%. NIQ experienced the highest price growth at 44%, while NXTT experienced the biggest fall at -99%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was -32%. For the same stocks of the Industry, the average monthly volume growth was -3% and the average quarterly volume growth was -49%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 52
P/E Growth Rating: 77
Price Growth Rating: 56
SMR Rating: 78
Profit Risk Rating: 94
Seasonality Score: -3 (-100 ... +100)
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General Information

a provider of cloud-based services that automate enterprise IT operations

Industry PackagedSoftware

Profile
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Information Technology Services
Address
2225 Lawson Lane
Phone
+1 408 501-8550
Employees
22668
Web
https://www.servicenow.com
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