| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 3.8K | 22.1% |
| Total Income | 3.8K | 22.1% |
| Expenditure | 3.3K | 23.9% |
| PBT | 673.00 | 21.3% |
| Net Profit | 469.00 | 2.0% |
| OPM | 13.34% | 1.26pp |
| NPM | 12.44% | 2.46pp |
| EPS | 0.45 | 79.7% |
ServiceNow Reports Q1 2026: Subscription Revenues Up 22% Y-o-Y
23 Apr 2026 · 23 Apr, 2:19 am
Summary
ServiceNow announced its financial results for the first quarter ended March 31, 2026. Subscription revenues reached $3,671 million, representing a 22% year-over-year growth. Total revenues also grew by 22% to $3,770 million. The company's current remaining performance obligations increased by 22.5% to $12.64 billion. ServiceNow's CEO, Bill McDermott, highlighted the company's platform as an AI control tower for business reinvention, while CFO Gina Mastantuono noted the early close of the Armis acquisition and its impact on TAM and subscription revenue growth.
Key Highlights
- 1
ServiceNow's Q1 2026 subscription revenues reached $3,671 million, reflecting a 22% year-over-year increase.
- 2
Total revenues for Q1 2026 amounted to $3,770 million, also representing a 22% increase year-over-year.
- 3
Current remaining performance obligations totaled $12.64 billion as of Q1 2026, a 22.5% increase year-over-year.
- 4
Remaining performance obligations reached $27.7 billion as of Q1 2026, representing a 25% year-over-year growth.
- 5
The company closed its acquisition of Armis on April 20, 2026, expanding its TAM and accelerating subscription revenue growth.
- 6
ServiceNow repurchased approximately 20.1 million shares of common stock during Q1 2026.
Management Comments
Bill McDermott
ServiceNow’s first quarter performance beat the high end of our guidance once again. Since our founding, we’ve built our platform around the work customers need to accomplish. Today, they rely on ServiceNow to be their AI control tower for business reinvention. Customers trust our platform because we integrate with any model, cloud, interface, data, and system they choose to deploy. As new technologies create both opportunity and risk, our two decades of engineering combined with deep business context enable us to orchestrate and secure the agentic enterprise. With this foundation, our AI growth is far exceeding even our own expectations, reinforcing our position as one of the fastest growing enterprise software companies ever.
Gina Mastantuono
In Q1, we exceeded the high end of our topline and profitability guidance metrics, grew free cash flow, and returned capital to shareholders. The early close of our Armis acquisition meaningfully expands our TAM and accelerates our subscription revenue growth trajectory. With agentic AI, workflow orchestration, security, and data fabric converging on a single platform, we believe the most compelling chapter in ServiceNow's growth story is just beginning.
Informational and educational content only. Not investment advice.