ServiceNow (NOW) Earnings Date & Reports

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, arrive amid heightened investor focus on artificial intelligence adoption in enterprise software. The company has positioned its platform as an AI control tower for business reinvention, with strong demand signals from customers seeking governed, scalable AI deployments. Recent performance shows consistent double-digit growth in subscription revenues, supported by expanding remaining performance obligations that provide visibility into future revenue. These trends matter because they reflect ServiceNow’s ability to capture AI-driven spending while maintaining operating leverage in a competitive software 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.

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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.

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.

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