| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 4.0K | 5.8% | 24.0% |
| Total Income | 4.0K | 5.8% | 24.0% |
| Expenditure | 3.8K | 17.1% | 33.9% |
| PBT | 438.00 | 34.9% | 7.0% |
| Net Profit | 298.00 | 36.5% | 22.6% |
| OPM | 4.06% | 9.28pp | 7.07pp |
| NPM | 7.47% | 4.97pp | 4.50pp |
| EPS | 0.29 | 35.6% | 84.4% |
ServiceNow Reports Q2 2026 Financial Results, Beats Guidance and Raises Full Year Outlook
23 Jul 2026 · 23 Jul, 1:47 am
Summary
ServiceNow announced strong second quarter 2026 financial results, exceeding guidance across topline growth and profitability metrics. Subscription revenues grew 24.5% year-over-year to $3,877 million, contributing to total revenues of $3,987 million, up 24% year-over-year. The company also raised its full-year subscription revenues outlook, driven by strong net new ACV and a higher mix of on-premise subscription revenues. Management highlighted the company's solid fundamentals and the increasing demand for its AI offerings.
Key Highlights
- 1
ServiceNow reported subscription revenues of $3,877 million in Q2 2026, representing 24.5% year-over-year growth.
- 2
Total revenues reached $3,987 million in Q2 2026, marking a 24% year-over-year increase.
- 3
Current remaining performance obligations (cRPO) grew 21% year-over-year to $13.20 billion as of Q2 2026.
- 4
Remaining performance obligations (RPO) stood at $29.0 billion as of Q2 2026, up 21% year-over-year.
- 5
ServiceNow AI achieved an annual contract value of over $1 billion in Q2 2026.
- 6
The company raised its full-year subscription revenues outlook.
- 7
Non-GAAP subscription gross margin was 80.5% in Q2 2026, compared to 83% in Q2 2025.
Management Comments
Bill McDermott
ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company. The company’s sterling fundamentals have us operating to the Rule of 56, well on our way to the Rule of 60. With our AI Control Tower as the market standard, agentic deployments of ServiceNow AI increased ninefold in just nine months. Our $29 billion in remaining performance obligations is fueled by longer customer commitments and skyrocketing demand from our partner ecosystem. We are who we said we were: a defining company that is only just getting started.
Gina Mastantuono
Q2 was an outstanding quarter that highlights ServiceNow’s broad based demand, strong execution, and operating leverage. Once again, we beat the high end of our guidance range across every topline and profitability metric. AI net new ACV growth continues to outpace expectations, our AI Control Tower is supercharging our Security and Risk business, and ITOM is seeing strong demand tailwinds for the CMDB to serve as an essential governance and data foundation. In an environment where most enterprises are still searching for AI's ROI, ServiceNow is the platform delivering it.
Informational and educational content only. Not investment advice.