ServiceNow (NOW) Earnings Date & Reports

Key Takeaways

• Total revenue reached $4.106 billion, up 20.5% year over year, edging past the FactSet consensus estimate of $4.095 billion.
• Adjusted earnings per share (EPS) came in at $1.00, slightly below the $1.02 analysts had expected.
• Subscription revenue rose 21% year over year to $3.988 billion, supported by stronger enterprise AI adoption.
• Current remaining performance obligations (cRPO) climbed 20.5% to $13.65 billion, while total remaining performance obligations (RPO) grew 22% to $29.7 billion.
• ServiceNow raised its full-year 2026 AI annual contract value target to $1.7 billion, up from $1.5 billion.
• The company lifted its full-year free cash flow margin outlook to 36%, up from 35% previously.
• For additional context on this ticker's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages.
• Discover automated trading ideas with Trending AI Robots.

Earnings Context and Why It Matters

ServiceNow's third-quarter report is a key barometer for enterprise software and the fast-growing market for agentic AI, or AI systems that can act autonomously within business workflows. The company has positioned its platform as the "control tower" for governing AI agents, making each quarterly print a test of whether AI adoption is translating into durable subscription growth. Investors were watching closely for signs that large deals, cybersecurity demand, and higher-value AI packages could sustain momentum even as interest income and acquisition-related costs pressured profitability. The results offer a window into both near-term execution and the company's longer-term role in enterprise automation.

Reported Results

For the third quarter ended September 30, 2026, ServiceNow reported total revenue of $4.106 billion, up 20.5% year over year and modestly above the consensus estimate of $4.095 billion. Subscription revenue, the company's core growth engine, increased 21% to $3.988 billion.

Adjusted earnings per share came in at $1.00, just under the $1.02 consensus, while non-GAAP operating margin reached roughly 32.5%. Management attributed the earnings shortfall primarily to lower interest income and added debt costs following its acquisition of cybersecurity firm Armis.

Bookings metrics came in ahead of expectations. Current remaining performance obligations (cRPO), which reflect contracted revenue expected to be recognized within the next 12 months, rose 20.5% to $13.65 billion, above the $13.56 billion estimate. Total remaining performance obligations (RPO) grew 22% to $29.7 billion. The company also raised its 2026 AI annual contract value target to $1.7 billion, citing a surge in large deals.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool designed to help traders and investors filter the market using technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs with customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is built to surface trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. For investors tracking earnings-driven moves like ServiceNow's, it offers a structured way to identify similar setups across the market.

Market Reaction and Investor Sentiment

ServiceNow shares fell sharply in after-hours trading following the report, with declines reported in the range of roughly 14% to 17%. The sell-off reflected investor unease over the earnings miss and fourth-quarter revenue guidance that landed below some Street expectations, even as revenue and bookings metrics beat consensus. The reaction underscores how elevated expectations around AI-driven growth have raised the bar for enterprise software names, leaving little room for even modest profit shortfalls.

Forward Outlook and Key Factors to Monitor

ServiceNow guided fourth-quarter subscription revenue to a range of $4.245 billion to $4.255 billion, and raised its full-year 2026 subscription revenue outlook to between $15.78 billion and $15.79 billion. The company also increased its full-year free cash flow margin target to 36%, reflecting an emphasis on cost discipline.

Investors will be watching whether the company's expanded AI contract value target of $1.7 billion continues to convert into durable subscription growth. Large deals, particularly those exceeding $5 million in net new annual contract value, have become an increasingly important driver of bookings momentum.

Other factors to monitor include the integration of recent acquisitions such as Armis and Veza, which have strengthened the company's cybersecurity and identity capabilities but added near-term costs. Margin trends, the pace of enterprise AI deployment, and competitive dynamics against major software vendors will also shape how the market interprets future quarterly results.

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