ServiceNow (NOW +7.38%) reported mixed results in its latest investor update.
*Stock prices used were the afternoon prices of July 22, 2026. The video was published on July 24, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
ServiceNow is rated a strong buy, driven by its strategic pivot to become the AI agent control tower for enterprises. NOW's aggressive M&A, including Armis and Veza, directly addresses governance and security bottlenecks critical for enterprise AI adoption. Transition away from seat-based pricing and core ticketing disruption positions NOW defensively against SaaS commoditization and AI-driven competition.
Navitas Semiconductor: Navigating Revenue VolatilityNavitas Semiconductor (NVTS -9.23%) designs and develops advanced power integrated circuits, silicon carbide devices, and digital isolators for various enterprise and consumer applications.
It recently entered a technical collaboration within the Nvidia ecosystem to develop data center power solutions, and it reported a -393% net income margin for the quarter ended March 31, 2026.
ServiceNow: Consistent Revenue ExpansionServiceNow (NOW +7.38%) delivers cloud-based software solutions that help large organizations streamline, automate, and manage digital workflows across their enterprise operations.
It introduced new digital oversight tools and expanded partnership agreements at its annual conference, while reporting 8% net income margin for the quarter ended June 30, 2026.
Why Revenue Matters for Retail InvestorsRevenue helps investors gauge the total amount of money a business brings in before any operating expenses or taxes are deducted. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.
Quarter (Period End)Navitas Semiconductor RevenueServiceNow RevenueQ3 2024 (Sept. 2024)$21.7 million$2.8 billionQ4 2024 (Dec. 2024)$18.0 million$3.0 billionQ1 2025 (March 2025)$14.0 million$3.1 billionQ2 2025 (June 2025)$14.5 million$3.2 billionQ3 2025 (Sept. 2025)$10.1 million$3.4 billionQ4 2025 (Dec. 2025)$7.3 million$3.6 billionQ1 2026 (March 2026)$8.6 million$3.8 billionQ2 2026Not yet reported$4.0 billion (period ended June 2026)Data source: Company filings. Data as of July 24, 2026.
Foolish TakeA look at the revenue trends for Navitas and ServiceNow reveal two companies headed in opposite directions. The former is seeing a self-inflicted decline in sales while the latter is generating quarter-over-quarter growth, an impressive feat to maintain consistently over time.
Navitas’ revenue underwent a substantial drop over the past several quarters because the company decided to exit its mobile and consumer businesses in China last year to focus on artificial intelligence. The China market was responsible for 60% of sales in 2024.
Navitas management expects the fourth quarter of 2025 to be the low point, and that revenue will rebound from there. That appears to be the case given the increase to $8.6 million in Q1. The company reports Q2 results on July 27, where it will need to continue demonstrating quarterly sales growth for its AI pivot to garner investor confidence.
ServiceNow shares were hit hard earlier in 2026, dropping to a 52-week low of $81.24 in April, as Wall Street feared AI would take business away, leading to a sector-wide sell-off in software-as-a-service (SaaS) stocks. However, ServiceNow’s sales trend reveals business continues to expand.
The company’s $4 billion in Q2 sales represented strong 24% year-over-year growth, leading to ServiceNow raising full-year guidance for its subscription income. Due to another outstanding quarter, ServiceNow shares are hovering around $100, showing signs of a rebound.
Shares of ServiceNow (NYSE:NOW | NOW Price Prediction) are up 6% in Friday midday trading, changing hands at $97.36. Meanwhile, Salesforce (NYSE:CRM) stock is climbing 4% to $162.56 as a wave of federal AI deal flow lifts enterprise software after months of pain.
The bounce comes off a brutal run. ServiceNow stock is down 40% year to date (YTD), and Salesforce shares have shed 40.5% over the same span. Today’s session reads as an oversold rebound with two fresh, name-specific catalysts underneath it.
Both companies sit at the center of a rotation from AI infrastructure names back into application-layer software, where AI is finally translating into recurring revenue rather than raw capex.
ServiceNow’s Q2 Beat and Raise Lights the Fuse ServiceNow reported Q2 FY2026 results Wednesday after the close. The company’s subscription revenue climbed 24.5% to $3.88 billion year over year (YoY), and current remaining performance obligations (cRPO) rose 21% to $13.2 billion. AI annual contract value crossed $1 billion ahead of schedule, with agentic-AI production customers up ninefold in nine months.
CEO Bill McDermott stated in the release, “ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company.” ServiceNow’s management raised its FY26 subscription revenue guide to at least $15.755 billion, and security products landed in 16 of the 20 largest deals thanks to Armis, Veza, and the AI Control Tower stack.
Analysts’ reactions have been aggressive overall. Research reports from Bernstein (Outperform, $248), Evercore ISI ($160), JPMorgan (Overweight, $150), Cantor ($141), and Jefferies ($140) all lifted their ServiceNow stock price targets. Moreover, a fresh Bank of America (NYSE:BAC) research note flagged an “overlooked AI advantage” at a $130 Buy rating.
The bear case has weight, too. UBS cut ServiceNow stock to $110 and Neutral, noting that “demand remains mixed.” Notably, ServiceNow’s Q2 also benefited from federal on-premise revenue pulled forward from Q3, and the Q3 subscription guide of $3.975 to $3.98 billion sits below the $4 billion Street view. Additionally, ServiceNow’s gross margin slipped to 77.9% from 81%.
Salesforce Lands $1.6 Billion Veterans Affairs Deal Salesforce won a $1.6 billion, three-year Department of Veterans Affairs Agentic Enterprise License Agreement, deploying Missionforce, Agentforce Public Sector, and Agentforce Health across the agency. The stated goal is cutting veteran appointment scheduling from 28 days to minutes.
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The award builds on Q1 FY2027 momentum for Salesforce. Agentforce ARR reached $1.2 billion, up 205% YoY, combined Agentforce and Data 360 ARR hit $3.4 billion, and Public Sector Industry Cloud ARR surpassed $2 billion, up 23% YoY. Salesforce CEO Marc Benioff emphasized, “Agentic AI is the biggest growth opportunity for our customers, and for Salesforce.”
The bears may counter that Salesforce stock still trades at a trailing 12-month P/E ratio of 18.85x with decelerating headline growth, and that the Informatica integration adds execution risk. Salesforce’s $25 billion accelerated share repurchase program has cushioned EPS, but organic acceleration in H2 FY27 is now the show-me story.
Software Sector Rides the Government Spending Wave The rally lifts the broader group. The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) holds both ServiceNow and Salesforce among its top positions, giving the fund concentrated exposure to today’s tape. Concentration cuts both ways, amplifying gains on days like this and losses on drawdowns.
Oracle (NYSE:ORCL) recently secured an up-to-$6.99 billion Pentagon software deal, reinforcing the government-AI-spend theme running through the sector. Federal budget priorities are flowing directly into enterprise software order books, and today’s action suggests that investors are willing to pay for exposure again.
What to Watch Now Investors can watch for whether today’s midday gains hold into the Friday close and whether follow-through research notes extend the target-hike wave into next week. Volume and breadth across software names will signal whether this is a durable rotation or a one-day squeeze.
Salesforce’s Q2 FY2027 earnings report is expected in late August, and ServiceNow’s Q3 setup carries a pull-forward overhang that management will need to address. For beaten-down holders, today offers relief, but position sizing should reflect that both names are still deep in the red for the year.
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Bank of Nova Scotia raised its position in ServiceNow, Inc. (NYSE:NOW – Free Report) by 53.3% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 1,018,036 shares of the information technology services provider’s stock after acquiring an additional 353,749 shares during the period. Bank of Nova Scotia owned approximately 0.10% of ServiceNow worth $106,436,000 as of its most recent filing with the SEC.
Other institutional investors also recently modified their holdings of the company. Brighton Jones LLC grew its holdings in shares of ServiceNow by 1.1% during the fourth quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock valued at $2,919,000 after buying an additional 30 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of ServiceNow by 4.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock worth $861,000 after acquiring an additional 34 shares during the last quarter. United Bank lifted its position in ServiceNow by 15.5% in the 2nd quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock valued at $1,562,000 after acquiring an additional 204 shares in the last quarter. Riggs Asset Managment Co. Inc. lifted its position in ServiceNow by 2.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock valued at $1,976,000 after acquiring an additional 42 shares in the last quarter. Finally, Nebula Research & Development LLC boosted its stake in ServiceNow by 205.1% during the 2nd quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock valued at $931,000 after purchasing an additional 609 shares during the last quarter. 87.18% of the stock is owned by institutional investors and hedge funds.
ServiceNow Stock Performance Shares of NOW stock opened at $92.15 on Friday. The firm has a market cap of $95.00 billion, a price-to-earnings ratio of 57.59, a P/E/G ratio of 1.60 and a beta of 0.96. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $210.20. The firm’s 50-day simple moving average is $104.70 and its two-hundred day simple moving average is $107.77.
ServiceNow (NYSE:NOW – Get Free Report) last released its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.63%. The firm had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the prior year, the firm earned $0.81 EPS. The company’s revenue was up 24.0% compared to the same quarter last year. As a group, equities analysts forecast that ServiceNow, Inc. will post 2.33 earnings per share for the current year.
Analyst Ratings Changes NOW has been the subject of a number of recent research reports. Raymond James Financial decreased their price objective on ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Bank of America started coverage on ServiceNow in a report on Monday, May 18th. They set a “buy” rating and a $130.00 price target for the company. Argus lowered their price target on ServiceNow from $180.00 to $134.00 and set a “buy” rating for the company in a research report on Friday, April 24th. Jefferies Financial Group restated a “buy” rating and set a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday. Finally, Weiss Ratings downgraded shares of ServiceNow from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $143.39.
Read Our Latest Stock Analysis on ServiceNow
Insider Activity at ServiceNow In other ServiceNow news, Director Anita M. Sands sold 16,445 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the transaction, the director directly owned 30,090 shares of the company’s stock, valued at approximately $2,712,312.60. This represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the completion of the sale, the director directly owned 44,930 shares of the company’s stock, valued at $3,919,243.90. This represents a 3.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 19,144 shares of company stock worth $1,730,097. Insiders own 0.34% of the company’s stock.
Key ServiceNow News Here are the key news stories impacting ServiceNow this week:
Positive Sentiment: ServiceNow beat Q2 earnings and revenue estimates, showing that demand for its workflow and AI products remains healthy. Positive Sentiment: The company raised its annual subscription revenue forecast again, which signals management confidence in continued growth. Positive Sentiment: AI-related momentum was a major highlight, with AI contract value topping $1 billion and multiple reports saying customers are adopting ServiceNow’s AI platform more aggressively. Positive Sentiment: Several analysts turned more constructive after earnings, including price-target increases and reaffirmed buy/overweight ratings. Neutral Sentiment: New partnerships and customer wins, including Experian, Leidos, TeamViewer, and Exclusive Networks, support the long-term platform story but are less likely to move the stock immediately. Article Title Negative Sentiment: Some investors remain worried that new AI tools from OpenAI and others could pressure legacy enterprise software, which has created volatility even after the earnings beat. ServiceNow Company Profile (Free Report)
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
Featured Stories Five stocks we like better than ServiceNow Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW – Free Report).
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ServiceNow (NYSE:NOW | NOW Price Prediction) just did something no enterprise software company has done at this pace: its AI business crossed $1 billion in annual contract value, with agentic deployments up ninefold in nine months. Yet the stock trades down 50.4% over the past year. Our 24/7 Wall St. price target says that disconnect is the opportunity.
The price target for ServiceNow is $216.50 over the next 12 months, implying 126.8% upside from the current $95.46. Our model registers a bullish signal with 90% confidence.
Metric Value Current Price $95.46 24/7 Wall St. Price Target $216.50 Upside 126.8% Recommendation BUY Confidence Level 90% Why the Stock Sold Off Into a Blowout Quarter ServiceNow is down 37.69% year to date and off 8.85% in the past week, sitting 33% below its 52-week high of $210.20. Q2 FY2026 delivered EPS of $0.90 versus $0.8564 estimated and revenue of $3.987 billion, up 24% year over year. Subscription revenue grew 24.5%, and total RPO hit $29 billion.
CEO Bill McDermott stated: “ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company.” Management raised FY2026 subscription revenue guidance to $15.76 billion to $15.78 billion. The selling reflects sector-wide multiple compression across software while company execution remains strong.
Why Bulls See a Breakout Ahead The bull case rests on the AI Control Tower becoming the governance layer for enterprise agentic AI. ServiceNow closed 123 net new ACV deals over $1 million (up nearly 40% year over year) and now has 658 customers spending more than $5 million ACV. Partnerships with NVIDIA (NASDAQ:NVDA) on Project Arc, Anthropic on Action Fabric, and nearly all 50 US states running the ServiceNow AI Platform reinforce the moat.
The consensus analyst target of $141.64, backed by 43 buy or strong buy ratings against a single sell, implies substantial upside. Our bull scenario reaches $229.69 if margin expansion and AI attach rates continue. Management targets $30 billion in subscription revenue by 2030, with AI reaching 30% of ACV.
What Could Go Wrong Operating income fell 54.75% year over year to $162 million, and GAAP subscription gross margin fell to 73.5% from 80%. This reflects amortization from Armis and Veza acquisitions; free cash flow still grew 20.53% to $634 million. Non-GAAP operating margin guidance holds at 31.5% for FY2026.
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Q2 benefited from a US Federal on-premise pull-forward from Q3, and Q3 faces a $35 million FX headwind on cRPO. Our bear scenario lands at $173.48.
How ServiceNow Compares to Salesforce and Workday Salesforce (NYSE:CRM) trades at a P/E of 18 with Q1 FY27 revenue growth of 13.3%. ServiceNow grows subscription revenue at nearly twice that pace, yet its market cap of $98 billion trails Salesforce’s $133 billion. That gap makes our target conservative.
Workday (NASDAQ:WDAY) trades at a P/E of 38 while growing subscription revenue 14.3% year over year, slower than ServiceNow’s 24.5%. Investors pay a premium for slower growth at Workday, reinforcing that ServiceNow’s multiple has room to re-expand.
ServiceNow Price Prediction 2026-2030 The 24/7 Wall St. price target of $216.50 reflects a company growing 24% with an AI business scaling ninefold, trading like a slower-growth peer. The setup favors investors who can tolerate volatility on the road to Rule of 60. Stay on the sidelines only if enterprise software multiples compress further from macroeconomic shocks.
Our 24/7 Wall St. price target model projects ServiceNow could trade as follows, assuming AI monetization ramp and $30 billion subscription revenue target by 2030 stay on track.
Year 24/7 Wall St. Price Target 2026 $216.50 2027 $310 2028 $450 2029 $630 2030 $910 These projections assume ServiceNow executes on AI Control Tower adoption and margin discipline. Significant downside could result from a broader software multiple reset or slower enterprise AI monetization than management guides.
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Arrowstreet Capital Limited Partnership increased its position in shares of ServiceNow, Inc. (NYSE:NOW – Free Report) by 189.0% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,328,805 shares of the information technology services provider’s stock after acquiring an additional 2,830,891 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.42% of ServiceNow worth $452,577,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also modified their holdings of the company. Covenant Asset Management LLC grew its stake in ServiceNow by 169.2% during the 4th quarter. Covenant Asset Management LLC now owns 20,863 shares of the information technology services provider’s stock valued at $3,196,000 after purchasing an additional 13,114 shares in the last quarter. Norges Bank bought a new stake in shares of ServiceNow in the fourth quarter worth $2,020,992,000. World Investment Advisors raised its holdings in ServiceNow by 411.7% in the fourth quarter. World Investment Advisors now owns 47,955 shares of the information technology services provider’s stock valued at $7,346,000 after acquiring an additional 38,583 shares in the last quarter. Cohen Klingenstein LLC raised its holdings in ServiceNow by 400.0% in the fourth quarter. Cohen Klingenstein LLC now owns 10,000 shares of the information technology services provider’s stock valued at $1,532,000 after acquiring an additional 8,000 shares in the last quarter. Finally, Moors & Cabot Inc. boosted its stake in ServiceNow by 387.7% during the 4th quarter. Moors & Cabot Inc. now owns 45,630 shares of the information technology services provider’s stock valued at $6,990,000 after acquiring an additional 36,274 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.
Insider Buying and Selling In other ServiceNow news, insider Paul Fipps sold 1,048 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $98.51, for a total value of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at approximately $1,189,212.72. The trade was a 7.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Anita M. Sands sold 16,445 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the completion of the sale, the director directly owned 30,090 shares of the company’s stock, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,144 shares of company stock valued at $1,730,097 over the last three months. Company insiders own 0.34% of the company’s stock.
Key Stories Impacting ServiceNow Here are the key news stories impacting ServiceNow this week:
Positive Sentiment: ServiceNow beat Q2 earnings and revenue estimates, showing that demand for its workflow and AI products remains healthy. Positive Sentiment: The company raised its annual subscription revenue forecast again, which signals management confidence in continued growth. Positive Sentiment: AI-related momentum was a major highlight, with AI contract value topping $1 billion and multiple reports saying customers are adopting ServiceNow’s AI platform more aggressively. Positive Sentiment: Several analysts turned more constructive after earnings, including price-target increases and reaffirmed buy/overweight ratings. Neutral Sentiment: New partnerships and customer wins, including Experian, Leidos, TeamViewer, and Exclusive Networks, support the long-term platform story but are less likely to move the stock immediately. Article Title Negative Sentiment: Some investors remain worried that new AI tools from OpenAI and others could pressure legacy enterprise software, which has created volatility even after the earnings beat. Wall Street Analysts Forecast Growth Several research analysts have weighed in on NOW shares. Truist Financial raised their price objective on shares of ServiceNow from $120.00 to $130.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Wells Fargo & Company cut their price objective on ServiceNow from $185.00 to $160.00 and set an “overweight” rating on the stock in a research note on Thursday, April 23rd. Wolfe Research set a $125.00 target price on ServiceNow in a report on Thursday, April 23rd. Jefferies Financial Group reiterated a “buy” rating and issued a $140.00 target price (up from $135.00) on shares of ServiceNow in a research report on Thursday. Finally, Guggenheim upgraded ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price target for the company in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $143.39.
Read Our Latest Stock Report on NOW
ServiceNow Trading Down 3.5% Shares of NYSE:NOW opened at $92.15 on Friday. The company has a 50 day moving average of $104.70 and a 200-day moving average of $107.77. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a market cap of $95.00 billion, a P/E ratio of 57.59, a P/E/G ratio of 1.60 and a beta of 0.96. ServiceNow, Inc. has a twelve month low of $81.24 and a twelve month high of $210.20.
ServiceNow (NYSE:NOW – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.63%. The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same quarter last year, the business earned $0.81 earnings per share. The business’s revenue for the quarter was up 24.0% on a year-over-year basis. As a group, analysts anticipate that ServiceNow, Inc. will post 2.33 earnings per share for the current fiscal year.
About ServiceNow (Free Report)
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
Further Reading Five stocks we like better than ServiceNow Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW – Free Report).
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SummaryServiceNow is transitioning from a SaaS to an AI-driven PaaS, positioning itself as an orchestration layer for enterprise AI workflows.NOW’s new consumption-based pricing model, centered on AI 'Assists' rather than seat count, unlocks exponential revenue potential and aligns with enterprise automation trends.I estimate fair value at $150 per share, implying 46% upside, driven by AI integration, pricing power, and contract upsells for generative AI features.Key risks include the execution of the new pricing model, the integration of acquisitions, overreliance on AI upsell, and intensified competition from hyperscalers. JHVEPhoto/iStock Editorial via Getty Images
Introduction ServiceNow (NOW) is often viewed with a puzzling look on the faces of most investors because the company doesn't sell a tangible, consumer-facing product. Instead, it sells digital workflow automation to large companies. In this article, I'll
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
This article is for informational purposes only and is not intended as a recommendation. The information presented here is based on publicly available data, and I have no knowledge of your individual financial circumstances. It should not be construed as a recommendation or a solicitation to become a client of DocShah Financial, nor does it establish any advisory relationship between you, the reader, and DocShah Financial. It's important to note that conflicts of interest may exist, and I or my clients may have holdings in the stocks discussed and are subject to change at any time without prior notice. Any decision to invest should be based on your own research and consultation with a qualified financial advisor. Investing involves risks, and past performance is not indicative of future results. DocShah Financial or I may stand to gain from stock purchases, and readers should carefully consider their own risk tolerance and financial situation before making any investment decisions. You are fully responsible for any investment outcome.
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SummaryServiceNow delivered strong Q2 results, surpassing revenue and EPS estimates, with subscription revenue up ~25% YoY and growing high-value customer momentum.GAAP subscription gross margins deteriorated sharply in Q2. On paper, this massive deterioration looks threatening.I discuss why looking at the reported GAAP gross margin hides some important details buried deep in the earnings report. After all, the gross margin decline looks worse than it is.The bear argument for ServiceNow is centered on its deteriorating gross margin and technology disruption. JHVEPhoto/iStock Editorial via Getty Images
AI has made life difficult for SaaS companies. Well, at least for the majority of them. Apart from Palantir Technologies Inc. (PLTR), which has increasingly positioned itself as a business transformation solutions provider, not a SaaS company, SaaS stocks have suffered
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NOW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways ServiceNow's Q2 earnings rose 11.1% as revenues climbed 24% to $3.99 billion.NOW's subscription revenues jumped 24.5%, while cRPO grew 21% to $13.20 billion.ServiceNow raised 2026 subscription guidance as AI annual contract value topped $1 billion. ServiceNow (NOW - Free Report) reported second-quarter 2026 earnings of 90 cents per share, up 11.1% year over year. The figure beat the Zacks Consensus Estimate by 4.65%.
Revenues of $3.99 billion rose 24% year over year and surpassed the consensus mark by 1.65%. Results benefited from strong subscription demand, while current remaining performance obligations (cRPO) reached $13.20 billion.
NOW Gains From Broad Subscription MomentumSubscription revenues increased 24.5% year over year to $3.88 billion. At constant currency (cc), subscription revenues rose 23%, 150 basis points (bps) above the high end of management’s guidance.
Professional services and other revenues advanced 8.5% to $110 million.
ServiceNow attributed the subscription outperformance to stronger net new annual contract value (NNACV) and a higher on-premise revenue mix, primarily from U.S. federal demand that shifted some revenues from the third quarter into the second quarter.
ServiceNow Builds Backlog and Expands Large DealsIn the second quarter of 2026, cRPO, or contracted revenues expected to be recognized within 12 months, grew 21% year over year. At cc, the metric increased 21.5%, exceeding guidance by 200 bps. Total remaining performance obligations (RPO) rose 21% year over year to $29 billion, or 22% at cc.
NOW recorded 123 transactions exceeding $1 million in NNACV, up nearly 40% year over year. The company ended the quarter with 658 customers generating more than $5 million in annual contract value, an increase of roughly 23%.
NOW’s AI and Workflow Portfolio Gains TractionServiceNow AI annual contract value crossed $1 billion. Net new AI annual contract value grew more than 40% sequentially, while deals containing at least five ServiceNow AI products increased 5.5 times year over year. The number of customers with Agentic AI in production expanded ninefold over the past nine months.
Demand was broad across workflows. ITSM appeared in 15 of the top 20 deals, ITOM in 18 and security and risk solutions in 16. CRM and industry workflows were also included in 16 of the top 20 deals, supported by momentum in configure-price-quote and sales and order management.
ServiceNow’s Margins Reflect Revenue OutperformanceNon-GAAP total gross margin was 78%, down from 81% a year earlier. Subscription gross margin contracted 250 bps to 80.5%.
Non-GAAP operating income rose 22.8% year over year to $1.17 billion. Operating margin was unchanged at 29.5% and came in 300 bps above guidance due to revenue outperformance and the timing of spending, mainly in marketing.
NOW Generates Cash and Maintains LiquidityServiceNow ended the second quarter of 2026 with $2.50 billion in cash and cash equivalents. Current and long-term marketable securities totaled $4.20 billion.
Net cash provided by operating activities was $587 million, compared with $716 million in the year-ago quarter. Free cash flow increased to $634 million from $535 million, while free cash flow margin slipped 50 bps to 16%.
ServiceNow Raises 2026 Subscription OutlookFor the third quarter of 2026, NOW expects subscription revenues between $3.975 billion and $3.980 billion, implying 20.5% year-over-year growth and 20% growth at cc. cRPOs are projected to increase 19.5%, or 20% at cc. Non-GAAP operating margin is expected to be 31%.
For 2026, ServiceNow raised its subscription revenue guidance to $15.76-$15.78 billion from $15.735-$15.775 billion. The midpoint increased by $15 million. The updated range represents 22.5% year-over-year growth and 21% growth at cc.
The company continues to expect an 81% non-GAAP subscription gross margin, a 31.5% non-GAAP operating margin and a 35% free cash flow margin for 2026.
ServiceNow noted that stronger AI adoption and greater use of hyperscaler partnerships are reflected in the gross-margin outlook.
Zacks Rank & Stocks to ConsiderServiceNow currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Amphenol (APH - Free Report) , Bandwidth (BAND - Free Report) and Fortinet (FTNT - Free Report) . Amphenol, Bandwidth and Fortinet sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol, Bandwidth and Fortinet are set to report their second-quarter 2026 results on July 29. Year to date, shares of Amphenol, Bandwidth and Fortinet have returned 16.6%, 316.7% and 95.3%, respectively.
Are momentum stocks on the verge of a major recovery? Consider this: the iShares MSCI USA Momentum Factor ETF (CBOE:MTUM) fell from $345.22 on June 22 to $302.09 on Friday, July 17, and has rebounded since. The fund sits unchanged today at $314.65 and up 24% year to date (YTD). (Note that MTUM is an unleveraged fund that periodically rebalances with volatile, shifting factor exposure.)
If last Friday’s low marked the bottom for the momentum trade, the most beaten-down high-momentum names could see outsized upside. However, a triple from today’s prices remains a very high bar, especially for unprofitable companies. Two of the three names below are unprofitable on a trailing basis, and the third is a large, richly valued software company where tripling is difficult.
Investors can treat the “could triple” idea as a high-risk, speculative, multi-year bull case, not a forecast. It mainly depends on the momentum rebound holding and each individual thesis playing out. Here are three ranked candidates.
3. ServiceNow (NOW) ServiceNow (NYSE:NOW | NOW Price Prediction) stock trades at $94.04, down 39% YTD, giving it a TTM P/E ratio of 59x on TTM EPS of $1.60. The bull case rests on agentic AI orchestration becoming a durable growth pillar, much like cybersecurity software has stayed resilient through broader software-sector weakness.
ServiceNow delivered a strong Q2 FY2026 with revenue of $3.987 billion, up 24% year over year (YoY), and CEO Bill McDermott stated that “agentic deployments of ServiceNow AI increased ninefold in just nine months.” A Wall Street analyst target of $138.84 implies meaningful upside.
The risk is ServiceNow’s size. With a market cap above $98 billion, a triple would require the company to sustain premium AI growth for years while software multiples expand. Reddit’s r/investing community has debated whether AI capex is crowding out software demand.
2. Wolfspeed (WOLF) Wolfspeed (NYSE:WOLF) stock is up 51% YTD to $26.33, with no TTM P/E because Wolfspeed remains unprofitable on TTM EPS of -$13.28. The bull thesis centers on a vertically integrated silicon carbide supply chain that could inflect as SiC adoption ramps in AI data centers, industrial electrification, and grid modernization.
Following Chapter 11 emergence, Wolfspeed cleaned up its balance sheet, cutting total liabilities by 71% YoY and reducing annual interest expense by $62 million. CEO Robert Feurle highlighted the launch of the “first commercially available 10 kV silicon carbide power MOSFET” alongside a next-generation TOLT portfolio and 300mm substrate platform.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ServiceNow didn't make the cut. Grab the names FREE today.
However, the risk profile shouldn’t be overlooked. Wolfspeed stock carries deeply negative EPS, negative gross margins, and bearish Wall Street coverage with a Strong Sell in the mix and analyst target of $30. Reddit sentiment on WOLF was consistently bearish across all tracked periods earlier this month, underscoring how speculative this SiC recovery story remains.
1. Navitas Semiconductor (NVTS) Navitas Semiconductor (NASDAQ:NVTS) stock is up 70% YTD to $12.13, with no TTM P/E (unprofitable) and TTM EPS of -$0.63. Recent showcases include 800V power delivery boards debuted at NVIDIA (NASDAQ:NVDA) GTC and a 250 kW solid-state transformer with EPFL, part of a broader pivot into gallium nitride and high-voltage silicon carbide.
CEO Chris Allexandre stated that Navitas is “continuing to pivot away from mobile and consumer to focus on high-power markets with our GaN and high-voltage SiC solutions.” Navitas’s management targets a $3.5 billion serviceable addressable market by 2030 growing at a 60%+ compound annual growth rate (CAGR) across AI data center, grid, performance computing, and industrial electrification.
Navitas stock fell hard in the recent momentum sell-off, making it the highest-torque rebound candidate with a beta of 3.815. The risk is equally sharp: Navitas has no profits, a price-to-sales ratio above 76x, and revenue that fell 39% YoY in the most recent quarter as management winds down legacy consumer business.
Polymarket currently prices a 76% probability that Navitas beats its upcoming non-GAAP EPS estimate. Yet, even with a favorable setup, Navitas would need years of execution on the AI-power and grid-infrastructure roadmap for a share-price triple to materialize.
The Momentum Rebound Hypothesis The three names tie together under a single hypothesis: if the July 17 momentum low in the MTUM ETF holds, the highest-beta stocks inside the momentum factor could bounce hard from oversold levels. A tripling scenario is enticing as a speculative, multi-year bull case, but it requires both the factor rebound to stick and each company’s road map to execute cleanly.
Should the July 17 low fail, these high-beta names could fall just as fast as they’ve bounced. Cautious, modest position sizing is appropriate given the volatility across NVTS, WOLF, and NOW stocks.
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ServiceNow Inc (NYSE:NOW, XETRA:4S0) forecast third-quarter results above Wall Street expectations and posted second-quarter earnings that beat analyst estimates.
The company reported second-quarter subscription revenue of $3.88 billion, up 24.5% from a year earlier, while total revenue reached $3.99 billion, ahead of analyst estimates of $3.92 billion.
Adjusted earnings per share came in at $0.90, topping estimates of $0.86.
Current remaining performance obligations (cRPO), a closely watched bookings metric, rose 21% year-over-year to $13.20 billion, above estimates of roughly $13.03 billion.
For the third quarter, ServiceNow guided subscription revenue of $3.975 billion to $3.98 billion and cRPO growth of 19.5% year-over-year, ahead of analyst estimates of 18% to 19% growth.
The company raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion, representing growth of 22.5% year-over-year. It maintained its outlook for subscription gross margin of 81%, operating margin of 31.5% and free cash flow margin of 35%.
ServiceNow said its artificial intelligence business surpassed $1 billion in annual contract value during the quarter, as the company continues to expand its AI product offerings.
The company also reported 658 customers with more than $5 million in annual contract value, up 23% from a year earlier, and 123 transactions exceeding $1 million in annual contract value, up about 40%.
Adjusted operating margin was 29.5%, above estimates of 26.5% and flat year-over-year. Free cash flow totaled $634 million, a 16% margin, below estimates of $679 million.
Shares fluctuated around the flatline on Thursday, adding a modest 0.5% to its opening levels.
Key Takeaways ServiceNow beat Q2 earnings and revenue estimates and raised its fiscal 2026 subscription revenue outlook.NOW's AI business topped $1B in ACV as enterprise adoption and agentic AI deployments accelerated.ServiceNow reported 98% renewal rates, rising cRPO, and strong large-customer and AI product momentum. ServiceNow (NOW - Free Report) reported impressive second-quarter fiscal 2026 results, surpassing Wall Street expectations on both the top and bottom lines as accelerating adoption of its AI platform, robust enterprise demand, and continued execution across its workflow portfolio fueled another quarter of strong growth.
The company reported non-GAAP earnings of 90 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 4.7%. Revenues totaled $3.99 billion, exceeding the consensus estimate of $3.92 billion.
Subscription revenues, ServiceNow's largest business, climbed 24.5% year over year to $3.88 billion, while current remaining performance obligations (cRPO) rose 21% to $13.2 billion, reflecting continued customer demand and longer contract durations. Remaining performance obligations reached $29 billion, up 21% from the prior-year period.
Management highlighted that the company exceeded the high end of its guidance across every major top-line and profitability metric. Chairman and CEO Bill McDermott noted that ServiceNow AI surpassed $1 billion in annual contract value (ACV) during the quarter, while agentic AI deployments increased ninefold over the past nine months. He emphasized that enterprises increasingly view ServiceNow's AI Control Tower as the governance layer required to securely deploy AI across organizations.
President and CFO Gina Mastantuono said AI demand continued to outperform internal expectations, with net new AI ACV accelerating sequentially and customers increasingly adopting multiple AI products simultaneously. The company also reported a best-in-class renewal rate of 98%, ended the quarter with 658 customers generating more than $5 million in ACV, and recorded 123 transactions exceeding $1 million in net new ACV, representing nearly 40% year-over-year growth.
AI Platform Driving Enterprise ExpansionManagement devoted much of the earnings call to highlighting the growing strategic importance of the company's AI platform.
During the quarter, ServiceNow launched Otto, a unified AI experience integrating Now Assist, Moveworks, and AI Experience. The company also expanded AI Control Tower with enhanced governance, security, and observability capabilities while introducing new autonomous AI specialists across IT, CRM, employee services and security.
Executives stressed that enterprises are moving beyond AI experimentation toward measurable business outcomes. According to management, customers increasingly favor deterministic AI capable of completing work rather than simply providing recommendations.
The company also pointed to strong momentum across cybersecurity, where AI Control Tower, Armis, and Veza are expanding ServiceNow's security portfolio. McDermott described cybersecurity as one of the company's fastest-growing businesses and a significant long-term growth opportunity.
Beyond AI, ServiceNow strengthened partnerships with NVIDIA, Microsoft, AWS, Accenture, Experian, Lenovo, FedEx, and TeamViewer while outlining ambitious long-term financial targets during its Financial Analyst Day, including more than $30 billion in subscription revenues and a Rule of 60+ by 2030.
Guidance Raised Following Strong QuarterEncouraged by stronger-than-expected net new ACV generation, ServiceNow raised its full-year subscription revenue outlook.
For the third quarter of fiscal 2026, the company expects subscription revenues to be between $3.975 billion and $3.980 billion, representing approximately 20% constant currency growth, with cRPO growth of roughly 20%.
For fiscal 2026, ServiceNow now projects subscription revenues of $15.76 billion to $15.78 billion, implying approximately 21% constant currency growth. Management expects subscription gross margin of 81%, operating margin of 31.5%, and free cash flow margin of 35%.
Executives acknowledged that stronger U.S. federal demand accelerated some on-premise subscription revenues into the second quarter, but emphasized that underlying net new ACV strength, not timing alone, supported the higher full-year guidance.
Management CommentaryDuring the question-and-answer session, executives expressed confidence that AI adoption remains in its early stages.
Management highlighted that more than 40 customers are already deploying its Level 1 AI specialists, with some organizations automating 80-85% of service requests while reducing resolution times from days to approximately 20 minutes. The company also indicated that first-time buyers of ServiceNow's agentic AI products increased more than 45% year over year, reinforcing expectations that AI will account for 30% of ACV by 2030.
Executives further emphasized that ServiceNow's hybrid AI pricing model, combining licensing and usage-based elements, continues to resonate with enterprise customers while supporting pricing uplifts consistent with previously communicated targets.
Zacks Rank & Style ScoresServiceNow currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of D, a Growth Score of B, a Momentum Score of A, and a VGM Score of B.
ServiceNow (NOW) stock climbed about 7% onearly Thursday after the enterprise software company reported quarterly results that topped Wall Street expectations a
ServiceNow (NOW) raised its full-year subscription revenue forecast after another strong quarter, as rapid adoption of its AI products helped the software compa
ServiceNow Inc. (NYSE:NOW) posted better-than-expected second-quarter results after Wednesday’s closing bell.
ServiceNow reported quarterly earnings of 90 cents per share, which beat the Street estimate of 85 cents, according to Benzinga Pro data. Quarterly revenue clocked in at $3.99 billion, which beat the analyst consensus estimate of $3.93 billion and was up from $3.22 billion in the same period last year.
"ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company," said ServiceNow CEO Bill McDermott.
ServiceNow shares rose 5.5% to $100.67 in pre-market trading.
These analysts made changes to their price targets on ServiceNow following earnings announcement.
Jefferies analyst Samad Samana maintained the stock with a Buy and raised the price target from $135 to $140. Evercore ISI Group analyst Kirk Materne maintained the stock with an Outperform rating and raised the price target from $150 to $160. Considering buying NOW stock? Here’s what analysts think:
Photo via Shutterstock
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ServiceNow Inc (NYSE:NOW, XETRA:4S0) forecast third-quarter results above Wall Street expectations and posted second-quarter earnings that beat analyst estimates.
The company reported second-quarter subscription revenue of $3.88 billion, up 24.5% from a year earlier, while total revenue reached $3.99 billion, ahead of analyst estimates of $3.92 billion.
Adjusted earnings per share came in at $0.90, topping estimates of $0.86.
Current remaining performance obligations (cRPO), a closely watched bookings metric, rose 21% year-over-year to $13.20 billion, above estimates of roughly $13.03 billion.
For the third quarter, ServiceNow guided subscription revenue of $3.975 billion to $3.98 billion and cRPO growth of 19.5% year-over-year, ahead of analyst estimates of 18% to 19% growth.
The company raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion, representing growth of 22.5% year-over-year. It maintained its outlook for subscription gross margin of 81%, operating margin of 31.5% and free cash flow margin of 35%.
ServiceNow said its artificial intelligence business surpassed $1 billion in annual contract value during the quarter, as the company continues to expand its AI product offerings.
The company also reported 658 customers with more than $5 million in annual contract value, up 23% from a year earlier, and 123 transactions exceeding $1 million in annual contract value, up about 40%.
Adjusted operating margin was 29.5%, above estimates of 26.5% and flat year-over-year. Free cash flow totaled $634 million, a 16% margin, below estimates of $679 million.
Shares fluctuated around the flatline on Thursday, adding a modest 0.5% to its opening levels.
Výsledková sezóna technologických firem je letos z velké části o jedné otázce: které společnosti dokážou proměnit obrovský zájem o umělou inteligenci ve skutečné tržby.
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Tagy: Software, umělá inteligence, AI, hospodářské výsledky, ServiceNow
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TeamViewer, a global leader in digital workplace management, and ServiceNow, the AI control tower for business reinvention, today announced a strategic technol
ServiceNow stock NYSE:NOW jumped more than 7% in pre-market trading on Thursday after the enterprise-software company delivered a stronger second quarter and raised its annual subscription-revenue forecast.
The upbeat earnings eased some fears that artificial intelligence is weakening established software platforms.
Revenue rose 24% to $4 billion, while adjusted earnings of 90 cents a share beat the 86-cent consensus.
The reaction came before regular US trading began on Thursday, after the stock entered the results down almost 38% in 2026.
Yet the relief rally did not resolve the central debate.
Wall Street is now focused on current remaining performance obligations, or cRPO, and whether management’s third-quarter forecast signals healthy demand or another step down in organic growth.
ServiceNow’s second-quarter performance challenged the most bearish assumptions surrounding enterprise software.
Subscription revenue increased 24.5% to $3.9 billion, or 23% in constant currency, while cRPO climbed 21% to $13.2 billion and 21.5% excluding currency movements.
The company also raised its full-year subscription-revenue outlook to between $15.76 billion and $15.8 billion.
Those figures matter because expectations had fallen sharply during a broad software sell-off driven by concerns that generative-AI tools could displace traditional platforms.
The quarter showed that customers are still signing large contracts.
ServiceNow completed 123 transactions carrying more than $1 million in net-new annual contract value, nearly 40% more than a year earlier.
cRPO represents contracted revenue expected to be recognised over the following 12 months, making it one of the clearest forward-looking indicators for subscription businesses.
ServiceNow forecast third-quarter cRPO growth of 19.5% as reported and 20% in constant currency, below the 21.5% constant-currency rate delivered during the second quarter.
Management also said strong US federal demand accelerated some on-premise subscription revenue from the third quarter into the second.
JPMorgan analyst Mark Murphy retained an Overweight rating but remained cautious.
In a note reported by TipRanks, Murphy said he saw no material execution problem in the quarter, yet warned that an “odd lull” in organic constant-currency cRPO growth could restrain sentiment until the company returns towards its earlier trajectory.
Jefferies analyst Samad Samana took a more constructive view.
According to The Fly, Samana raised his target to $140 from $135 and maintained a Buy rating, arguing that the upside reflected stronger net-new contract value as well as timing benefits.
ServiceNow’s AI business crossed $1 billion in annual contract value during the quarter, while the number of customers running its AI agents in production increased ninefold over nine months.
That progress supports management’s argument that ServiceNow can benefit from enterprise AI adoption rather than be displaced by it.
The remaining question is whether those contracts will translate into faster organic growth as they move into recognised revenue.
Murphy’s caution reflects the gap between strong AI headlines and a third-quarter cRPO outlook near 20%.
Samana’s stance suggests larger contracts and healthier net-new annual value provide a stronger underlying signal than the headline slowdown implies.
ServiceNow (NOW) surged ~7% premarket after delivering earnings and revenue above expectations, marking five consecutive quarters of 20%+ year-over-year revenue growth. NOW's CEO highlighted robust AI-driven demand, emphasizing proprietary controls like the AI Control Tower and a 'kill switch' to address AI security concerns.
Softwarová společnost ServiceNow reportovala hospodářské výsledky za druhé čtvrtletí roku 2026, ve kterém překonala odhady analytiků. Analytici uvedli, že výsledky přišly jako povzbuzení poté, co zklamaly reporty IBM a Pegasystems.
Výsledky za 2Q Výnosy meziročně vzrostly o 24 % na 3,99 mld. USD, nad odhadem 3,93 mld. USD.
Výnosy z předplatného (subscription) dosáhly 3,88 mld. USD, meziročně +25 %, nad odhadem 3,81 mld. USD. Výnosy z profesionálních služeb a ostatní činily 110 mil. USD, meziročně +7,8 %, nad odhadem 109,3 mil. USD.
Očištěný hrubý zisk dosáhl 3,11 mld. USD, meziročně +19 %, v souladu s odhadem 3,11 mld. USD. Očištěná hrubá marže činila 78 % oproti loňským 81 %, pod odhadem 79,1 %. Očištěná hrubá marže z předplatného dosáhla 80,5 % oproti loňským 83 %, pod odhadem 81,4 %.
Nesplněné výkonnostní závazky (RPO) dosáhly 29 mld. USD, z toho aktuální nesplněné výkonnostní závazky (cRPO) činily 13,2 mld. USD, nad odhadem 12,99 mld. USD.
Očištěný volný hotovostní tok vzrostl meziročně o 19 % na 634 mil. USD, mírně pod odhadem 650,9 mil. USD.
Výhled na 3Q 2026 Společnost pro třetí čtvrtletí roku 2026 očekává:
Výnosy z předplatného 3,975–3,98 mld. USD (konsensus: 4,01 mld. USD). Růst aktuálních nesplněných výkonnostních závazků (cRPO) o 19,5 %. Výhled na FY 2026 Firma pro celý rok 2026 nyní predikuje:
Výnosy z předplatného 15,76–15,78 mld. USD (dříve: 15,74–15,78 mld. USD; konsensus: 15,74 mld. USD). Očištěná hrubá marže z předplatného 81 % (dříve: 81,5 %; konsensus: 81,6 %). Komentář vedení Bill McDermott, předseda představenstva a generální ředitel ServiceNow, uvedl: „Výjimečné výsledky za 2Q upevňují naši pozici nejrychleji rostoucí velké softwarové a kybernetické bezpečnostní společnosti. Solidní fundamenty nás posouvají k Rule of 56 a jsme na dobré cestě k Rule of 60. S naší AI Control Tower jako tržním standardem se agentní nasazení ServiceNow AI za devět měsíců zvýšila devítinásobně. Našich 29 mld. USD v nesplněných výkonnostních závazcích je poháněno delšími závazky zákazníků a raketově rostoucí poptávkou z našeho partnerského ekosystému.“
Gina Mastantuono, prezidentka a finanční ředitelka ServiceNow, dodala: „Druhé čtvrtletí bylo výjimečné a odráží širokou poptávku, silnou exekuci a provozní páku. Opět jsme překonali horní hranici našeho výhledu napříč všemi ukazateli výnosů i ziskovosti. Růst čistého nového ročního smluvního objemu (ACV) z AI nadále překonává očekávání.“
Komentáře analytiků Analytici z Bloomberg Intelligence uvedli, že lepší než očekávané výsledky byly taženy jak silnější exekucí, tak růstem podílu na útratách zákazníků, přičemž tržby ServiceNow spojené s AI překročily ve čtvrtletí 1 mld. USD v ročním smluvním objemu. Podle nich výsledky ukazují, že společnost zvládá prudkou změnu v IT rozpočtech lépe než konkurenti jako IBM a Pegasystems.
Analytici z Evercore ISI označili výsledky za solidní a uvedli, že překonání odhadu u cRPO považují za poměrně „čisté“ přibližně o 200 bazických bodů, přestože část debaty se bude točit kolem toho, kolik ze síly 2Q bylo přesunuto z 3Q díky federální a on-premise aktivitě.
Analytici z Barclays (doporučení overweight, cílová cena 134 USD) označili 2Q za velmi solidní čtvrtletí a uvedli, že silné výsledky ServiceNow po smíšených reportech IBM a Pegasystems pomáhají uklidnit obavy investorů z širšího dopadu na softwarový sektor.
Analytici z RBC Capital Markets (doporučení outperform, cílová cena 130 USD) uvedli, že ServiceNow dodal navzdory negativním očekáváním investorů velmi dobré čtvrtletí, s výrazněně zrychlujícím se růstem cRPO, přičemž výhled na 3Q by mohl znamenat další čtvrtletí zrychlení.
Akcie ServiceNow Akcie ServiceNow (NOW) v předburzovní fázi obchodování rostou o 8,42 % na 103,50 USD.
LONDON & SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced that Experian, the global data and technology company, and strategic partner, is significantly expanding its deployment of the ServiceNow AI Platform to drive enterprise-wide AI-led transformation. As a long-standing ServiceNow customer, Experian is leveraging agentic AI workflows to automate intelligence at scale, improve operational efficiency and deliver AI-fi.
ServiceNow, Inc. (NOW) Q2 2026 Earnings Call July 22, 2026 5:00 PM EDT
Company Participants
Darren Yip - Head of Investor Relations
William McDermott - Chairman & CEO
Gina Mastantuono - President & CFO
Amit Zavery - President, Chief Product Officer & COO
Conference Call Participants
Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Michael Turrin - Wells Fargo Securities, LLC, Research Division
Tal Liani - BofA Securities, Research Division
Samik Chatterjee - JPMorgan Chase & Co, Research Division
Tyler Radke - Citigroup Inc., Research Division
Matthew Hedberg - RBC Capital Markets, Research Division
Samad Samana - Jefferies LLC, Research Division
Brad Zelnick - Deutsche Bank AG, Research Division
Keith Bachman - BMO Capital Markets Equity Research
Gregg Moskowitz - Mizuho Securities USA LLC, Research Division
Adam Wood - Morgan Stanley, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the ServiceNow Second Quarter 2026 Earnings Conference Call. [Operator Instructions] We will now turn the conference over to Darren Yip, Senior Vice President, Investor Relations and Market Insights. Darren, please go ahead.
Darren Yip
Head of Investor Relations
Good afternoon, and thank you for joining ServiceNow's Second Quarter 2026 Earnings Conference Call. Joining me are Bill McDermott, our Chairman and Chief Executive Officer; Gina Mastantuono, our President and Chief Financial Officer; and Amit Zavery, President, Chief Product Officer and Chief Operating Officer.
During today's call, we will review our second quarter results and discuss our guidance for the third quarter and full year 2026. Before we get started, we want to emphasize that the information discussed on this call, including our guidance, is based on information as of today and contains forward-looking statements that involve risks, uncertainties and assumptions. We undertake no duty or obligation to update such statements as a result
ServiceNow, the U.S. enterprise software company known for automating workflows like IT service management and HR operations, is betting on an Indian banking software specialist to deepen its push into global financial services.
The company has invested $40 million in BusinessNext, valuing the 24-year-old Indian firm at $700 million and taking a roughly 5% stake. The deal gives BusinessNext access to ServiceNow’s global sales network as the companies expand their partnership in AI for financial services.
ServiceNow’s investment reflects BusinessNext’s growing profile beyond India. The profitable, Noida-based company, which generated about $32 million in revenue in its latest financial year, serves more than 70 banks across India, Southeast Asia, the Middle East, and the U.S. Its customers include the Reserve Bank of India, the country’s central bank, and State Bank of India and HDFC Bank, which are India’s largest public- and private-sector lenders, respectively.
About half of BusinessNext’s revenue comes from outside India, with overseas markets expected to drive much of its future growth, founder and CEO Nishant Singh said in an interview.
The company chose ServiceNow over potential financial investors to accelerate its expansion by tapping the U.S. software group’s global reach. Singh told TechCrunch that the partnership would help BusinessNext “borrow” its go-to-marker “machinery” — referring to ServiceNow’s sales infrastructure — in markets where it has a limited presence.
“Think of it as a strategic partnership, which is cemented with funding,” he said.
BusinessNext’s software, Singh said, manages customer-facing banking workflows, while ServiceNow is stronger in workflow automation and back-office systems, a combination the two companies plan to sell jointly to financial institutions.
“India’s financial services sector is at an inflection point — institutions are moving from digital experimentation to full-scale AI-led operations,” Kulmeet Bawa, ServiceNow’s group vice president and managing director for India and SAARC, said. He added that the partnership combines ServiceNow’s enterprise workflow platform with BusinessNext’s banking expertise.
Founded in 2002, BusinessNext — known as CRMNext until 2022 — has spent several years building what Singh calls an “autonomous banking” platform, using AI agents to automate banking workflows while keeping sensitive customer data on private AI infrastructure to meet regulatory and privacy requirements.
Singh told TechCrunch that AI was built into the company’s platform from the outset rather than added later. “We actually renamed our company and we kind of rewrote our stack to put that fundamentally at the core,” he said.
BusinessNext employs more than 1,300 people across its operations and was last valued at $181 million in 2021, per private market intelligence platform Tracxn. It has raised more than $60 million in external funding and counts Avataar Ventures, Norwest Venture Partners, and Ascent Capital among its existing investors.
The deal comes as established enterprise software vendors face pressure from customers who are questioning whether traditional SaaS tools are worth paying for when AI-native alternatives are emerging. For ServiceNow, the deal builds out its position in banking by partnering with a company focused on AI-driven banking software, as it expands its enterprise software portfolio through acquisitions, investments, and partnerships.
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Jagmeet covers startups, tech policy-related updates, and all other major tech-centric developments from India for TechCrunch. He previously worked as a principal correspondent at NDTV.
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Bill McDermott, ServiceNow chairman and CEO, joins 'Mad Money' host Jim Cramer to recap the company's quarterly results, address AI concerns, and more.
ServiceNow CEO Bill McDermott said on Wednesday that the rapid adoption of artificial intelligence is strengthening the company's competitive position.
His comments come just one day after OpenAI disclosed that one of its advanced AI agents escaped a controlled testing environment during a cybersecurity evaluation and compromised the infrastructure of AI startup Hugging Face before it was detected and contained.
"We have a kill switch that stops AI agents that go rogue, so those things don't need to happen, and they wouldn't happen when companies run ServiceNow," McDermott said on CNBC's "Mad Money."
ServiceNow offers a suite of software applications and tools used by companies to manage and automate workflows across IT, human resources, and customer service operations. It's also expanded its cybersecurity presence, in part through the acquisitions of Veza and Armis. Both deals closed this year.
Agentic systems are an increasingly popular corner of AI, going beyond a more simplistic chatbot that answers queries with a written response. These advanced systems are capable of executing multi-step tasks with little to no human intervention.
McDermott said ServiceNow's AI Control Tower is its system that gives companies a central place to monitor, manage, and secure the growing number of AI agents, helping businesses move "from AI chaos to AI discipline."
Shares of ServiceNow rose in extended trading after the company reported better-than-expected earnings and revenue. Even after the jump, however, the stock remains down more than 30% this year after software shares sold off during what investors dubbed the "SaaSpocalypse" amid concerns that advances in AI would disrupt the industry's traditional seat-based business model.
McDermott dismissed concerns that growing AI competition could pressure ServiceNow's profits or cause customers to shorten contract terms.
"If you look at the terms of our contracts, they've actually gotten longer," McDermott said.
Instead, he argued that broader AI adoption should increase demand for ServiceNow's software.
"There's going to be more AI. There's going to be more incidents, and all these things drive more and more volume to ServiceNow," he said. "That's why we increased the full-year guide."
OpenAI did not immediately respond to CNBC's request for comment but said earlier that AI is accelerating the discovery and exploitation of vulnerabilities, which means model security and safety need to keep up.
"We are strengthening the containment, monitoring, access controls, and evaluation practices used during model development," the ChatGPT maker said.
ServiceNow (NOW - Free Report) came out with quarterly earnings of $0.9 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.65%. A quarter ago, it was expected that this maker of software that automates companies' technology operations would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
ServiceNow, which belongs to the Zacks Computers - IT Services industry, posted revenues of $3.99 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.65%. This compares to year-ago revenues of $3.22 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ServiceNow shares have lost about 33.4% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for ServiceNow?While ServiceNow has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ServiceNow was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $4.11 billion in revenues for the coming quarter and $4.13 on $16.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Genpact (G - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This business process management services provider is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +10.2%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level.
Genpact's revenues are expected to be $1.33 billion, up 6.1% from the year-ago quarter.
ServiceNow (NOW - Free Report) reported $3.99 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 24%. EPS of $0.90 for the same period compares to $0.82 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.92 billion, representing a surprise of +1.65%. The company delivered an EPS surprise of +4.65%, with the consensus EPS estimate being $0.86.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ServiceNow performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Current Remaining Performance Obligations(cRPO) - GAAP: $13.20 billion versus $13.03 billion estimated by four analysts on average.Remaining Performance Obligations (RPO) - GAAP: $29.00 billion versus the four-analyst average estimate of $28.82 billion.cRPO (Current Remaining Performance Obligations) - Non-GAAP: $13.28 billion versus the two-analyst average estimate of $13.05 billion.Revenues- Subscription: $3.88 billion versus the nine-analyst average estimate of $3.82 billion. The reported number represents a year-over-year change of +24.5%.Revenues- Professional services and other: $110 million versus $107.26 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +7.8% change.Gross Profit (Non-GAAP)- Subscription: $3.12 billion versus the seven-analyst average estimate of $3.09 billion.Gross Profit (Non-GAAP)- Professional services and other: $-16 million versus the six-analyst average estimate of $10.73 million.View all Key Company Metrics for ServiceNow here>>>
Shares of ServiceNow have returned +6.4% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
CompaniesJuly 22 (Reuters) - ServiceNow (NOW.N), opens new tab has acquired roughly 5% of BusinessNext in a deal that values the software provider at $700 million, as the Indian company looks to expand its autonomous banking tools through a partnership with the U.S.-based software giant.
BusinessNext said on Wednesday it raised $40 million in a Series C round from ServiceNow Ventures, a venture capital arm of the company.
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Here are some details:
BusinessNext CEO Nishant Singh told Reuters that the funding will primarily be allocated to strengthening the company's sales efforts, initially focusing on expanding distribution in Southeast Asia and Australia.
"Every company has to go to an IPO. Right now, we're not looking at the IPO part," he said, adding that BusinessNext's ambition "right now is to run in every bank in the world."
The deal comes as banks are increasingly adopting AI tools offered by companies like BusinessNext to customize services, address customer queries and automate operations, helping them in saving time and attract more customers.
BusinessNext competes with companies like Freshworks (FRSH.O), opens new tab and has more than 120 customers including India's largest lender State Bank of India (SBI.NS), opens new tab and HDFC Bank (HDBK.NS), opens new tab.
The company said this partnership that will allow for enhanced monitoring of BusinessNext's AI agents through ServiceNow's AI control tower, a centralized platform for managing and governing AI models and agents across an enterprise.
Singh said BusinessNext has been "above $50 million for a couple of years now" in annual revenue, adding that the company has nearly 1,300 employees.
On Wednesday, ServiceNow raised its forecast for annual subscription revenue for the second time after beating second-quarter revenue and profit estimates, driven by growing demand for its AI-powered software.
Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Contrarian Alert: 5 Downgraded Stocks That May Reward Long-Term InvestorsServiceNow NYSE: NOW reported stronger-than-expected second-quarter 2026 results, with executives pointing to broad demand across artificial intelligence, cybersecurity, IT operations, customer relationship management and employee workflows.
Chairman and Chief Executive Officer Bill McDermott said the company delivered “a stunning Q2 print,” citing subscription revenue growth of 23% in constant currency, current remaining performance obligations, or cRPO, growth of 21.5% in constant currency and a non-GAAP operating margin of 29.5%. He said each of those metrics exceeded the company’s guidance.
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Marvell’s AI Moment Raises a Bigger Question for Amazon and ServiceNowServiceNow also reported 123 deals greater than $1 million in net new annual contract value, up 40% year over year. McDermott said ServiceNow AI annual contract value exceeded $1 billion and remains on pace to surpass the company’s target of $1.5 billion by the end of 2026.
AI Demand Continues to Build McDermott and President and Chief Financial Officer Gina Mastantuono both emphasized that AI adoption is becoming a larger driver of ServiceNow’s business. Mastantuono said ServiceNow AI net new ACV growth accelerated sequentially and grew more than 40% quarter over quarter. She added that deals including five or more ServiceNow AI products increased 5.5 times year over year, helping drive a tripling of million-dollar-plus deals.
Microsoft Build 2026 Is Really Just One Big AI Stress TestThe company said the number of customers with agentic AI in production has increased ninefold over the last nine months. Mastantuono said ServiceNow is already tracking ahead of its target for AI to reach 30% of ACV by 2030.
President, Chief Product Officer and Chief Operating Officer Amit Zavery discussed the company’s level 1 IT service management automation, saying more than 40 customers are already using the product. He said the AI specialists are closing about 80% to 85% of service requests without human interaction, reducing some request resolution times from two days to about 20 minutes.
“It’s end-to-end service request completion, not just giving you the information, but actioning on those requests as well,” Zavery said.
Cybersecurity Becomes a Central Theme McDermott repeatedly framed cybersecurity as a major growth area for ServiceNow, saying the company already has a “$1 billion-plus cybersecurity business” and is the “eighth-largest cybersecurity business in the enterprise.” He said ServiceNow is building what he described as an integrated end-to-end security platform spanning cyber risk and compliance, incident response, exposure management, identity and access security and vulnerability detection.
Executives highlighted the company’s acquisitions of Armis and Veza as important additions to that strategy. McDermott said Veza maps access across human, machine and AI identities, while Armis tracks connected devices in real time. He said the combination strengthens ServiceNow’s AI Control Tower, which is designed to give enterprises visibility, governance and security across AI systems.
Zavery said the company is addressing both pre-breach and post-breach cybersecurity workflows, including vulnerability management, exposure management and security operations center processes. However, he said ServiceNow does not plan to participate in every area of the cybersecurity market.
“Where we have strength, where we have opportunity, and it builds on top of what we did with CMDB, what we did with our post-breach stuff, and now adding the AppSec, as well as the pre-breach things,” Zavery said.
Revenue, RPO and Customer Metrics Mastantuono said second-quarter subscription revenue was $3.877 billion, up 23% year over year in constant currency and 150 basis points above the high end of guidance. Remaining performance obligations ended the quarter at approximately $29 billion, representing 22% year-over-year constant currency growth. Current RPO was $13.2 billion, up 21.5% in constant currency and 200 basis points above guidance.
ServiceNow’s renewal rate was 98% in the quarter. Mastantuono said the company ended the period with 658 customers generating more than $5 million in ACV, with 32 additional customers crossing the $20 million threshold compared with last year.
She said demand was broad across workflows:
Technology workflows had 50 deals above $1 million, including nine above $5 million. ITSM appeared in 15 of the top 20 deals, while ITOM appeared in 18 of the top 20 deals. Security and risk solutions were in 16 of the top 20 deals. CRM and industry workflows were also in 16 of the top 20 deals. Core business workflows were in 12 of the top 20 deals, supported by demand for ServiceNow EmployeeWorks. Mastantuono said business and consumer services led industry growth, with net new ACV growing more than sixfold year over year. Education grew more than 125%, while telecommunications and media grew nearly 40%. Manufacturing also posted strong growth, she said.
CRM, Employee Workflows and AI Control Tower McDermott said ServiceNow’s CRM business has reached $2 billion in ACV, and net new ACV growth in CRM accelerated both year over year and quarter over quarter. He said ServiceNow is increasingly being positioned by partners as an “operational CRM platform.”
He cited customer examples including a large airline using ServiceNow’s voice AI CRM agents to handle 5 million annual customer service voice calls in its first year of production. He also pointed to examples in quoting, loan origination and field operations.
On employee workflows, McDermott described EmployeeWorks as a strategic entry point for enterprise employee experiences, combining Moveworks conversational AI with ServiceNow workflows across HR, IT and workplace services. Mastantuono said EmployeeWorks deal volume grew more than 150% quarter over quarter.
The company also said AI Control Tower is gaining traction. Zavery said more than 500 customers are already live using AI Control Tower within the first six months of launch. McDermott cited customers including Maybank, Tech Mahindra, NTT Data and a Fortune 50 healthcare and retail distributor as examples of organizations using ServiceNow for AI governance and workflow transformation.
Guidance Raised for 2026 ServiceNow raised its full-year 2026 subscription revenue guidance by $15 million at the midpoint, to a range of $15.755 billion to $15.770 billion, representing 21% year-over-year growth in constant currency. Mastantuono said the company expects subscription gross margin of 81%, operating margin of 31.5% and free cash flow margin of 35% for the year.
For the third quarter, ServiceNow expects subscription revenue of $3.975 billion to $3.980 billion, representing 20% year-over-year constant currency growth. The company also expects cRPO growth of 20% in constant currency and an operating margin of 31%.
Mastantuono said some second-quarter upside came from strong U.S. federal demand, which shifted certain on-premises revenue from the third quarter into the second quarter. She said the timing shift did not account for all of the quarter’s outperformance, noting strong net new ACV as well.
Asked about sales cycles, McDermott said he has not seen a negative impact. “If I’ve seen any change, it’s on the positive,” he said, adding that ServiceNow’s relevance is increasing in C-suite discussions around AI, workflow automation and cybersecurity.
About ServiceNow (NYSE:NOW)ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Live Coverage Updates appear automatically as they are published.
Live Updates Pinned 1 hour ago
Live
This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of ServiceNow’s Q2 earnings.
Simply stay on this page, and new updates will appear below automatically. We expect ServiceNow to release earnings shortly after 4:10 p.m. ET.
19 minutes ago
Live
ServiceNow closed 123 transactions worth more than $1 million in net new annual contract value during Q2, an increase of nearly 40% year over year.
The company finished the quarter with 658 customers generating more than $5 million in ACV, up approximately 23%. Total remaining performance obligations increased 21% to $29.0 billion, supported by longer customer commitments and stronger partner demand.
Current remaining performance obligations reached $13.20 billion, also up 21%, providing substantial visibility into revenue expected over the next 12 months.
The deal data reinforces the idea that large enterprises are consolidating more workflows, security functions, and AI deployments onto ServiceNow’s platform.
20 minutes ago
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ServiceNow’s Q2 subscription revenue reached $3.88 billion, exceeding the high end of its guidance by 150 basis points and rising 24.5% year over year.
However, investors should note that part of the upside came from strong U.S. federal demand accelerating some on-premise subscription revenue from Q3 into Q2. That timing benefit helps explain why management expects Q3 subscription revenue growth to moderate to 20.5%.
Q3 cRPO growth is also expected to slow to 19.5% on a reported basis, or 20% in constant currency, compared with 21% reported growth in Q2.
The quarter was fundamentally strong, but the pull-forward means investors should avoid extrapolating all of the Q2 outperformance into the second half of the year.
24 minutes ago
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ServiceNow raised its full-year subscription revenue guidance to between $15.76 and $15.78 billion, representing approximately 22.5% growth.
The previous outlook called for $15.53 billion to $15.57 billion, meaning the midpoint increased by roughly $220 million. Management attributed the raise to stronger-than-expected net new annual contract value.
For Q3, ServiceNow expects subscription revenue of $3.975 billion to $3.980 billion, representing 20.5% reported growth. The company maintained its full-year non-GAAP operating margin target of 31.5% and free cash flow margin target of 35%.
The higher revenue outlook suggests enterprise demand remains durable despite the stock’s steep year-to-date decline.
27 minutes ago
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ServiceNow reached a major AI monetization milestone during Q2, with its AI products surpassing $1 billion in annual contract value.
Management said agentic AI deployments increased ninefold over the past nine months, while AI net new ACV growth continued to exceed its expectations. The company’s AI Control Tower is also driving additional demand across its Security and Risk business.
ServiceNow ultimately expects AI products to generate 30% of companywide ACV by 2030. Crossing $1 billion this early provides tangible evidence that its AI strategy is producing commercial results rather than remaining a long-term promise.
51 minutes ago
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ServiceNow just reported Q2 earnings, with shares initially up 2% following the report. Here are the key numbers:
Revenue: $3.99 billion vs. $3.93 billion expected EPS: $0.90 vs. $0.86 expected Quick Read:
ServiceNow beat expectations on both the top and bottom lines, with revenue rising 24% year over year and 6% sequentially.
EPS increased 10% year over year despite declining 7% from the previous quarter, while the positive initial reaction suggests the results cleared investors’ lowered expectations.
53 minutes ago
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ServiceNow CEO Bill McDermott previously delivered one of the boldest forecasts on Wall Street: “ServiceNow will become a $1 trillion company by 2030.”
With ServiceNow currently valued at just under $100 billion, McDermott is effectively calling for the company’s market value to increase tenfold within four years. He has also put his own money behind the business, purchasing about $3 million of NOW shares at $107 apiece.
Nvidia CEO Jensen Huang has reportedly suggested ServiceNow could eventually grow 100-fold, while President Trump purchased approximately $5 million of the stock.
Amazon, Microsoft, Alphabet, OpenAI, and Anthropic are also expanding their partnerships with the enterprise software leader.
The bull case is that ServiceNow is becoming the essential operating system for AI-powered enterprise workflows. Building a custom alternative through “vibe coding” could reportedly cost 5-10x more than adopting ServiceNow’s platform.
After the stock’s brutal decline, investors now face a remarkable question: Is ServiceNow one of the strongest buying opportunities in the market?
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1 hour ago
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ServiceNow (NYSE:NOW | NOW Price Prediction) reports Q2 earnings tonight.
The Consensus Bar EPS estimate: $0.40, versus $0.82 in Q2 2025 (pre-split) Subscription revenue guide: $3.650B–$3.655B, +21.5% GAAP cRPO growth guide: 22.5% GAAP Non-GAAP operating margin: 31.5% Price and Positioning NOW last traded at $95.66, off 6.27% intraday, -8.08% on the week, and -37.59% YTD.
The full-chain put/call has slipped to 0.53, and the July 24 expiry shows 27,419 calls versus 19,615 puts, pricing in an outsized move.
What Triggers a Rebound A cRPO print above 23% GAAP, a Now Assist update pacing toward the $1B ACV target, and an FY2026 subscription raise above $15.57B would reset the narrative.
A subscription cut below $15.53B, margin under 31.5%, or vague AI monetization language could extend the stock’s drawdown.
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With shares trading at $95.84, down 6.09% intraday ahead of the 4:10 PM ET Q2 earnings release, here is what to listen for on tonight’s call.
Top 5 Analyst Questions Is Now Assist tracking to the $1B ACV target by 2026? How much cRPO was pulled forward by the July 1 pricing change? Financial exposure from CVE-2026-6875? Armis, Veza, and Moveworks integration timeline? Federal deal slippage quantified? Key Topics Management Must Address Subscription gross margin trajectory after the drop to 82.5% Pace of the $2B accelerated buyback H2 guidance framing Buzzwords to Listen For “AI control tower,” “agentic operating system,” “Rule of 55+,” “platinum standard” Red Flags cRPO growth below 22.5% guidance Operating margin softer than 31.5% Any FY2026 subscription cut below $15.53B Vague AI monetization metrics 1 hour ago
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Several wildcards could swing tonight’s reaction for ServiceNow’s (NYSE:NOW) Q2 earnings.
Security Exploit in the Wild A critical sandbox-escape flaw, CVE-2026-6875 with a CVSS score of 9.5, is being actively exploited, and 31% of tested instances exposed data without credentials.
Management commentary on remediation costs is a swing factor.
Pricing Pull-Forward A new pricing model effective July 1, 2026, triggered early renewals, which Jefferies flagged and KeyBanc cited in its Underweight, $85 target.
cRPO strength could potentially be borrowed from the upcoming Q3 quarter.
Mix Shift and M&A Drag Self-hosted-to-hosted conversion carries a ~150bps subscription headwind, while Armis, Veza, and Moveworks integration adds noise.
Options positioning is calm, with a full-chain put/call ratio of 0.54.
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ServiceNow reports Q2 FY2026 earnings at 4:10 PM ET tonight after the closing bell, with shares down 33.38% year to date.
The central question is whether the company’s underlying growth remains strong enough to justify a rebound. Revenue is still growing 22.1%, while Now Assist net new annual contract value more than doubled year over year in Q4, keeping the company’s $1 billion AI target within reach.
Investors will also measure the results against ServiceNow’s FY2026 subscription revenue guidance of $15.53 billion to $15.57 billion. Current remaining performance obligations, or cRPO, will be one of the most important indicators of future demand.
Wall Street remains firmly bullish, with 43 buy ratings, only one sell rating, and an average price target of $141.64. A strong cRPO result could reestablish ServiceNow as a durable software compounder.
ServiceNow (NYSE:NOW) reports Q2 FY2026 earnings results tonight at 4:10 PM ET after today’s close. With shares down 46.84% over the past year and trading at $95.61, this earnings report carries unusual weight for Bill McDermott’s AI narrative.
Momentum Meets a Reset in Sentiment ServiceNow closed out fiscal year 2025 in a big way. Revenue hit $3.568B (+20.66% YoY), subscription revenue reached $3.466B (+21% YoY), and cRPO climbed to $12.85B, up 25%. Free cash flow of $2.0B pushed Q4 FCF margin to 57%.
However, the stock’s performance tells a different story. A 5-for-1 split took effect December 2025, and shares have since compressed, sitting roughly 55% below the 52-week high of $210.20. The stock’s forward P/E of 25 reflects that reset. Reddit’s r/stockmarket flagged the disconnect, noting NOW has been “growing free cash flow per share by over 20% per year for over a decade.”
Consensus Estimates Metric Q2 FY26 Guide YoY FY26 Guide Subscription Revenue N/A (Q1 guide: $3,650M-$3,655M) ~21.5% GAAP $15,530M-$15,570M Non-GAAP Op Margin Q1: 31.5% expanding 32% FCF Margin (FY) – – 36% Growth is expected to hold in the low 20s, but a ~150bps self-hosted-to-hosted mix headwind and ~100bps Moveworks drag weigh on Q1 optics. That means any softening in cRPO could suggest deceleration is coming.
What I’m Watching: AI Monetization, Margins, and M&A Tonight, I’ll be watching how ServiceNow frames Now Assist against the $1B ACV target originally set for 2026. Q4’s 244 transactions above $1M in net new ACV raised the bar, and repeat traction here anchors the agentic AI thesis.
Investors will also focus on subscription gross margin, which slipped to 82.5% in Q4 from 84.5% on AI infrastructure spend. FY26 is guided to 82%, so any further slippage complicates the operating margin path to 32%.
Integration cadence for Moveworks and the pending Armis and Veza acquisitions are also important factors. So does U.S. Federal commentary given upcoming agency budget tightening.
Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q4 25 +3.37% +0.24% -12.08% -3.03% Q3 25 +13.00% -1.65% -8.12% -11.80% Q2 25 +14.63% -2.75% -5.33% -11.67% Q1 25 +5.36% +0.71% +2.06% +9.46% On average, shares moved -5.87% one week after earnings over the past year.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ServiceNow didn't make the cut. Grab the names FREE today.
Fortune 500® national security technology leader is expanding its 10+ year relationship with ServiceNow – deploying the ServiceNow AI Platform to provide autonomous, AI-driven workflows designed to cut costs, improve employee experiences, and free employees for mission critical work.
SANTA CLARA, Calif. & RESTON, Va.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, and Leidos (NYSE: LDOS), a Fortune 500 industry and technology leader serving government and commercial customers, today announced that Leidos is expanding its use of the ServiceNow AI Platform to power employee experiences and efficient operations with agentic AI. The collaboration is focused on deploying autonomous, AI-driven workflows designed to cut costs, improve employee experiences and satisfaction, scale IT self-service, and centralize AI agent governance with the ServiceNow AI Platform. The deployment runs across FedRAMP environments, supporting the use of AI within government-grade compliance guardrails.
Leidos delivers advanced technology solutions across defense, intelligence, civil, and health markets, supporting some of the most demanding national security programs in the world. With approximately 50,000 employees and $17B+ annual revenue, Leidos operates at a scale where efficient, secure employee services are key for program performance, compliance, and workforce onboarding.
The challenge: expanding the self-service IT experience
As a ServiceNow customer for over 10 years, Leidos was already driving efficiencies with ServiceNow IT, Creator, and Asset Management workflows. As it grew, however, it sought new opportunities to help address rising IT and HR tickets. Leidos turned to ServiceNow to give employees a seamless, AI-enabled self-service experience.
The solution: ServiceNow connects IT, HR, and shared services on a single AI platform
Leidos is expanding its relationship with ServiceNow and deploying the ServiceNow AI Platform across its enterprise – providing autonomous, AI-driven workflows designed to cut costs, improve employee experiences, and free employees for mission critical work.
Leidos is deploying Now Assist and embedding AI across all areas of the business, unifying its employee experience life cycle with ServiceNow EmployeeWorks and HR Service Delivery; the AI Control Tower will further the company’s automated governance and agent orchestration for secure enterprise management. The implementation is expected to significantly reduce manual work and tickets, and free up IT, HR, and shared services resources to help focus on mission-critical tasks. In addition, Leidos’ ServiceNow deployment runs across FedRAMP environments, allowing the company to securely manage data for sensitive digital workflows, IT services, and conversational AI.
Key projected outcomes include:
$3M+ projected annual savings: As a result of AI-driven IT help desk automation, Level 1 incident resolution time is expected to be reduced from days to minutes.Up to 60% autonomous IT ticket resolution: AI agents are targeted to fully resolve the majority of IT support requests without human intervention, with the potential to eliminate approximately 80,000 tickets annually.Automated employee services for increased efficiency: ServiceNow EmployeeWorks to provide a fast, seamless conversational AI front door for everyday employee requests, helping accelerate productivity for Leidos employees and reduce ticket requests for service teams.Visibility and control of AI agents: AI Control Tower governs and orchestrates across the portfolio of AI agents and workflows, designed to help ensure that models and actions remain compliant, auditable, and aligned with Leidos’ security posture.Comments on the news:
"When you're managing national security workflows, you can't move fast without visibility and governance," said Paul Fipps, president of global customer operations at ServiceNow. "By unifying HR, IT, and shared services on the ServiceNow AI Platform, with AI Control Tower governing the deployment, Leidos can identify workflows and scale AI-enabled operations without adding complexity."
“We’re advancing our use of the ServiceNow AI Platform to augment our AI capabilities to make it easier for employees to deliver mission-critical outcomes at speed and scale, with the security our work demands,” said Alexandra Guenther, chief information officer at Leidos. “ServiceNow AI is helping us automate routine requests so our service desk teams can focus on more complex issues, improving both the employee experience and operational efficiency. By connecting employees with the right information when they need it, we’re enabling our employees to stay focused on solving our customers’ toughest challenges and turning technology into advantage.”
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended Jan. 2, 2026. For more information, visit www.Leidos.com.
About ServiceNow
ServiceNow (NYSE: NOW) is the AI control tower for business reinvention. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise. By unifying legacy systems, departmental tools, cloud applications, and AI agents, ServiceNow provides a single pane of glass that connects intelligence to execution across every corner of business. With more than 100 billion workflows running on the platform each year, ServiceNow helps organizations turn fragmented operations into coordinated, autonomous workflows that deliver measurable results. Learn how ServiceNow puts AI to work for people at www.servicenow.com.
Leidos Forward-Looking Statements
Certain statements in this announcement constitute “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the “Risk Factors” set forth in Leidos’ Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
ServiceNow Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to ServiceNow’s expanded relationship with Leidos. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow’s results could differ materially from the results expressed or implied by the forward-looking statements made. ServiceNow undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. Further information on factors that could affect ServiceNow’s financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time.
Nearly all 50 U.S. states join ~90% of the Fortune 500 in putting AI to work with the ServiceNow AI Platform
California, Hawaii, North Carolina, and Washington, D.C. are among the state and local agencies using ServiceNow to improve citizen experiences and modernize operations
SANTA CLARA, Calif.--(BUSINESS WIRE)-- ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced strong momentum in the public sector, with nearly all 50 U.S. states transforming mission outcomes with the ServiceNow AI Platform. State and local agencies in California, Hawaii, North Carolina, and Washington, D.C. are among those using the ServiceNow AI Platform to help deliver better citizen services and modernized operations on a trusted and integrated government-grade platform designed for the scale and efficiency public sector missions demand.
With the ServiceNow AI Platform, we're creating one unified front door for employee requests, so our workforce can spend less time navigating systems and more time serving the District.
ShareTurning government complexity into coordinated action
ServiceNow helps state and local governments modernize operations, unlock the value of their data, and strengthen cybersecurity, designed to deliver strong ROI on every dollar invested. With an autonomous workforce of AI specialists, employees gain a teammate to work alongside them—helping to cut wait times on things like permits, benefits, and constituent requests—all while maintaining government-grade security across any cloud, AI model, data source, and system.
“State and local leaders are redefining what government can deliver, and ServiceNow is proud to be the platform making it possible,” said Mike Hurt, group vice president of U.S. Public Sector at ServiceNow. “We bring AI that's governed by design through our AI Control Tower, built to scale across agency missions, and designed to keep humans in the loop so agencies can earn and keep the citizen trust their missions depend on.”
Putting AI to work for mission-critical services
State and local agencies are achieving durable value ROI from the ServiceNow AI Platform, including:
California: The California Housing Finance Agency (CalHFA) is using ServiceNow’s AI-powered Public Sector Digital Services to provide AI assistance to human call center agents and agentic AI ticket resolution to help manage thousands of calls and questions related to services they provide: low-interest rate home loans, down payment assistance, and financing for the development of affordable rental and ownership housing. With ServiceNow’s multi-channel self-service capabilities, auto-generated case summaries, and AI-powered case resolution, CalHFA has reduced costs while improving the citizen experience.Hawaii: Launched the ServiceNow AI Platform in just six weeks, establishing a shared enterprise service platform for the State of Hawaii. The platform reflects the State's vision for digital transformation. Today, it powers the statewide HIP help desk, AI-enabled self-service, knowledge management, and enterprise IT service management, creating a scalable foundation for future statewide adoption.North Carolina: The City of Raleigh became the first municipal government to deploy ServiceNow’s L1 AI Specialist in production, with no in-house AI engineering bench behind it. The city is using ServiceNow AI agents to route service tickets with precision and speed, cutting service desk costs by 66% and returning more than 1,300 staff hours a year. Now they’re extending that same AI-powered service to all 500,000 residents.Washington, D.C.: The Office of the Chief Technology Officer (OCTO) is replacing a patchwork of contact center and workflow tools with the ServiceNow AI Platform, using EmployeeWorks to give every DC Government employee a single conversational entry point for service requests and agentic AI to automate fulfillment on the backend. The new experience is expected to enable employees to resolve most routine requests on their own, reducing wait times and allowing IT and HR teams to focus on more complex work. OCTO is also extending the platform to grants management with Public Sector Digital Services, targeting reducing processing time in half and clearer visibility for agencies overseeing awards. OCTO also plans to use ServiceNow AI Control Tower to gain visibility into every AI model and agent in production, helping govern AI at scale.“Our ServiceNow AI Platform represents the new path we're charting for the future of government in Hawaii,” said Darren Cantrill, information system manager, State of Hawaii. “In just six weeks, we built a shared enterprise service platform that's already changing how agencies collaborate and how quickly we can respond to the people we serve. This is just the beginning of our modernization journey, creating a foundation that agencies across Hawaii can continue to build upon.”
“We are a long-time ServiceNow customer and we've continued to expand our use of the platform to transform how we serve both employees and our community,” said Mark Wittenburg, chief information officer, City of Raleigh. “Today, ServiceNow AI agents are autonomously resolving nearly half of our IT support requests, and our goal is to reach 85% as we continue to automate routine work and empower our teams to focus on more complex, high-value services. Together, we're building a more efficient, responsive government while taking a thoughtful, responsible approach to AI that puts people first.”
“Our goal is to make DC Government simpler on the front end and smarter on the back end,” said Stephen N. Miller, chief technology officer, the District of Columbia. “With the ServiceNow AI Platform, we're creating one unified front door for employee requests, so our workforce can spend less time navigating systems and more time serving the District. On that same platform, we're reimagining grants management, where we expect to reduce processing time by 60 percent. All of this is built on the foundation of DC's AI Values—and with AI Control Tower giving us visibility across every AI agent and model in production, we're building government that's simpler, faster, and more trusted.”
About ServiceNow
ServiceNow (NYSE: NOW) is the AI control tower for business reinvention. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise. By unifying legacy systems, departmental tools, cloud applications, and AI agents, ServiceNow provides a single pane of glass that connects intelligence to execution across every corner of business. With more than 100 billion workflows running on the platform each year, ServiceNow helps organizations turn fragmented operations into coordinated, autonomous workflows that deliver measurable results. Learn how ServiceNow puts AI to work for people at www.servicenow.com.
SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced financial results for its second quarter ended June 30, 2026, with subscription revenues of $3,877 million in Q2 2026, representing 24.5% year-over-year growth and 23% in constant currency. “ServiceNow's exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company,” said ServiceNow Chairman and CEO Bill McDermott.
Bill McDermott, chairman and CEO of ServiceNow, speaks during an interview on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 26, 2023. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
July 22 (Reuters) - ServiceNow (NOW.N), opens new tab on Wednesday raised its forecast for annual subscription revenue for the second time after beating second-quarter revenue and profit estimates, driven by growing demand for its AI-powered software.
Shares of ServiceNow rose over 5% in volatile extended trading. They have fallen about 37% so far this year.
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The results come as software giants are grappling with concerns of a "SaaSpocalypse" - a term reflecting the gloom around software-as-a-service companies amid growing capabilities of new AI tools provided by startups like OpenAI and Anthropic.
But ServiceNow is expanding its AI agent portfolio across domains like IT and customer service, helping enterprise clients to automate complex, time-consuming workflows.
Earlier this year, ServiceNow launched Otto, an AI experience designed to handle requests from employees and complete complex cross-department workflows. It also enhanced its capabilities by acquiring cybersecurity startup Armis and AI startup Moveworks.
ServiceNow said its AI platform has seen widespread adoption across the public sector, with nearly all 50 U.S. states now using it to improve citizen services and modernize operations.
The company now expects full-year 2026 subscription revenue of $15.760 billion to $15.780 billion, up from its earlier projection of $15.735 billion to $15.775 billion.
Second-quarter subscription revenue of $3.88 billion and adjusted profit per share of 90 cents exceeded LSEG-compiled analysts' average estimates of $3.82 billion and 85 cents, respectively.
However, the company's forecast for third-quarter subscription revenue of $3.975 billion to $3.980 billion came in below the average estimate of about $4 billion.
ServiceNow said its current remaining performance obligations, contract revenue expected to be recognized within the next 12 months, hit $13.20 billion as of June 30, a 21% increase from a year earlier.
"Our $29 billion in remaining performance obligations is fueled by longer customer commitments and skyrocketing demand from our partner ecosystem," CEO Bill McDermott said in a statement.
Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber
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HomeIndustriesSoftwareEarnings ResultsEarnings Results‘The attack surface is exploding,’ CEO Bill McDermott tells MarketWatchJuly 22, 2026, 4:19 p.m. ET
Against a gloomy backdrop for software sentiment, ServiceNow just topped revenue expectations.
The company generated $3.877 billion in subscription revenue during the second quarter, up 24.5% from a year earlier and ahead of the $3.817 billion FactSet analyst consensus. ServiceNow said it had seen a “ninefold” increase in agentic deployments of its AI offerings over the course of nine months.
Here’s a look at the key metrics from the quarter.
NOW stock is moving. Watch the price action here. ServiceNow reported quarterly earnings of 90 cents per share, which beat the Street estimate of 85 cents, according to Benzinga Pro data.
Quarterly revenue clocked in at $3.99 billion, which beat the analyst consensus estimate of $3.93 billion and was up from $3.22 billion in the same period last year.
ServiceNow reported the following second-quarter highlights:
“ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company,” said ServiceNow CEO Bill McDermott.
“The company’s sterling fundamentals have us operating to the Rule of 56, well on our way to the Rule of 60,” McDermott added.
NOW Stock Price Activity: According to data from Benzinga Pro, ServiceNow stock was up 4.78% to $100 in Wednesday’s extended trading.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Shares of ServiceNow (NOW -6.42%) were pulling back today after disappointing results from Pegasystems (PEGA -17.13%), a small-cap enterprise automation software company, seemed to confirm a concerning trend for ServiceNow, that customers were delaying software orders as they spend on AI.
As of 12:44 p.m. ET, ServiceNow was down 5.9%, while Pegasystems had lost 16.2%, and the iShares Expanded-Tech Software ETF, which tracks top software stocks like ServiceNow, was down 2.7%, showing software stocks were down broadly even as the major indexes were flat.
Image source: Getty Images.
Why the Pegasystems report is bad news for ServiceNow Pegasystems missed estimates on the top and bottom lines as management said, "Unprecedented changes in the AI market caused clients to delay their purchasing decisions."
That commentary and the poor results echo the update from IBM last week, as the legacy tech giant plunged after it warned that several large customer deals were delayed as its customers redirect capital expenditure budgets to AI hardware, with prices for components like memory rising rapidly.
Pega CEO Alan Trefler also said cost uncertainties around generative AI programs were causing companies to be more hesitant, adding that decision cycles have lengthened.
The development has implications for ServiceNow, which relies on similar budgetary spending on its cloud software.
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What's next for ServiceNow ServiceNow is due to report second-quarter earnings after the bell, and investors may be expecting to hear similar commentary from the enterprise software giant.
The analyst consensus calls for revenue to grow 22.2% to $3.93 billion, and for adjusted earnings per share to tick up from $0.82 to $0.86.
ServiceNow has been one of the biggest losers in the so-called SaaSpocalypse as software stocks have plunged on fears of AI disruption. The stock is now down more than 50% from its peak in late 2024, even as it's continued to deliver solid results.
Tonight's report comes at a pivotal moment. Expect the stock to swing big one way or the other tomorrow, depending on the results.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines and ServiceNow. The Motley Fool has a disclosure policy.
ServiceNow (NYSE:NOW | NOW Price Prediction) reports Q2 2026 earnings after the close today, July 22, 2026, and the setup is binary. The stock has been cut roughly in half over the past year, but management raised its Now Assist AI revenue target from $1 billion to $1.5 billion on the Q1 call. If tonight’s update confirms that trajectory, the recovery thesis gains real teeth.
ServiceNow ranks among the more contested turnaround setups in enterprise software right now. Our 24/7 Wall St. price target for ServiceNow is $331.60 over the next 12 months, implying 224.9% upside from $102.06. The recommendation is buy, with confidence at 90%. That is aggressive relative to the Street’s $141.64 consensus.
24/7 Wall St. Price Target Summary Metric Value Current Price $102.06 24/7 Wall St. Price Target $331.60 Upside 224.9% Recommendation BUY Confidence Level 90% A Brutal Year, but a Turning Tape ServiceNow trades 46.84% below where it did a year ago and 33.38% below the December 31 close, sitting 33% from the 52-week high of $210.20. Momentum has flipped. The stock is up 7.39% over the past month, and Reddit sentiment jumped from bearish to a peak Very Bullish reading of 82 around a viral r/stockmarket thread charting 14 years of free cash flow per share.
Q1 2026 validated the AI thesis. Subscription revenue hit $3.671 billion, RPO reached $27.7 billion, and non-GAAP operating margin printed 32%. Now Assist deals over $1 million grew more than 30% year-on-year, and Sales CRM net new ACV grew more than 5x.
Why Bulls See a Breakout Ahead The bull case is the AI monetization curve. Bill McDermott put it plainly on the Q1 call: “We had a goal to be $1 billion on our AI commit this year, as you know. And I think we might have understated that a little bit. We’re already talking about $1.5 billion now, and it’s on a run.”
Deals including three or more Now Assist products grew nearly 70% year-over-year, and 50% of net new business now uses non-seat pricing. Our 247Factor bull case projects $350.95 if tonight’s report confirms the $1.5 billion pace and Q3 guidance implies further acceleration.
What Could Go Wrong Bears point to the 61x trailing P/E, an Armis integration that adds a 200 basis point headwind to free cash flow margin, and gross margin compression as AI infrastructure scaled. Post-earnings tape has been unkind.
The Q4 report saw a 9.94% single-day drop despite a beat. The margin compression reflects heavy investment in agentic AI capacity that management expects to drive the same operating leverage that scaled from 29.5% to 32% margins last year. The bear case target lands at $254.05.
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How ServiceNow Compares to Salesforce and Palantir Salesforce (NYSE:CRM) is the direct competitor now that ServiceNow’s Sales CRM with CPQ is landing multi-million-dollar deals. Salesforce trades at a materially lower forward multiple than ServiceNow’s 25x forward P/E, but growth has slowed toward the mid-single digits versus ServiceNow’s 20.5% to 21% guided subscription growth. That growth premium justifies our target.
Palantir (NASDAQ:PLTR) is the AI orchestration comp investors price against ServiceNow. Palantir trades at a forward multiple many times ServiceNow’s 25x, with a smaller revenue base. If Palantir’s premium is defensible, ServiceNow at 7.73x price-to-sales looks structurally underpriced given the 97% renewal rate and $27.7 billion RPO backlog.
ServiceNow Price Prediction 2026-2030 Our model reads buy at $102.06, targeting $331.60 with 90% confidence. The tipping factor is the Now Assist $1.5 billion trajectory. Confirmation would come from tonight’s report showing Now Assist NNACV accelerating and 2026 subscription guidance moving toward the high end.
The thesis weakens if operating margin guidance for Q3 slips below 26.5% or if RPO growth decelerates below 20% in constant currency.
Looking further out, here is where our model projects ServiceNow could trade, assuming current growth and margin trajectories hold.
Year 24/7 Wall St. Price Target 2026 $180 2027 $331.60 2028 $620 2029 $1,250 2030 $2,100 These projections assume ServiceNow executes on its AI control tower strategy and closes the Armis and Veza integrations without disruption. Significant upside or downside could result from federal budget shifts or an acceleration in agentic AI displacement of legacy vendors.
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Index Dow Jones +0,52 % na 52498,58 b. S&P 500 +0,11 % na 7517,66 b. Nasdaq Composite -0,17 % na 25793,08 b.
Wall Street se v úvodu seance obchoduje ve smíšených číslech. Investoři zaujímají opatrný postoj před výsledky technologických společností. Dnes po konci obchodování budou reportovat společnosti Alphabet, Tesla, IBM a ServiceNow.
Investory zaujala rovněž zpráva Wall Street Journal, podle které společnost AMD uzavřela se společností Anthopic kontrakt na dodávku AI serverů v hodnotě několik desítek miliard dolarů.
Dnes před otevřením trhu reportovala výsledky řada společnosti, příkladem je Philip Morris International, GE Vernova a AT&T.
Americká tabáková společnost překonala tržní predikce napříč hlavními ukazateli. Tržby poprvé překonaly hranici 11 mld. USD. Celoroční výhled očištěného zisku na akcii společnost mírně snížila, a to prakticky výhradně kvůli měnovým vlivům.
Co se týče výsledků amerického výrobce energetického zařízení GE Vernova. Její divize energetiky a elektrifikace nadále těží z rychle rostoucí poptávky spojené mimo jiné s výstavbou datových center a modernizací rozvodných sítí, přičemž větrná energetika zůstává ztrátová. Díky silnému přílivu objednávek, expanzi marží a výrazné tvorbě hotovosti společnost navýšila svůj celoroční výhled pro rok 2026.
Telekomunikační operátor AT&T reportoval výsledky za 2Q. Čistý přírůstek postpaid mobilních zákazníků překonal průměrný odhad analytiků. Nad očekávání byl rovněž reportován očištěný zisk na akcii a očištěný zisk EBITDA.
Index S&P 500 +0,11 % na 7517,66 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,5 % Informační technologie -0,4 % Utility +1,4 % Reality 0 % Energie +1,3 % Zdravotní péče +0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Super Micro Computer (SMCI) +23 % TE Connectivity (TEL) -7,3 % Westinghouse Air Brake Technologies Corp (WAB) +11 % GE Vernova (GEV) -6,4 % Dell Technologies (DELL) +9,7 % DoorDash (DASH) -3,9 % CME Group (CME) +7,2 % AppLovin Corp (APP) -3,5 % Hewlett Packard Enterprise (HPE) +6,0 % Datadog (DDOG) -3,5 % Zdroj: Bloomberg
Alesco Advisors LLC An ESL Co bought a new position in shares of ServiceNow, Inc. (NYSE:NOW – Free Report) during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 6,816 shares of the information technology services provider’s stock, valued at approximately $713,000.
A number of other large investors also recently bought and sold shares of NOW. Vanguard Group Inc. raised its stake in shares of ServiceNow by 404.5% during the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after buying an additional 81,752,460 shares during the period. State Street Corp increased its holdings in ServiceNow by 406.6% in the 4th quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock worth $7,337,280,000 after acquiring an additional 38,441,898 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in ServiceNow by 371.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock worth $4,962,692,000 after buying an additional 25,517,218 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock valued at $3,591,425,000 after acquiring an additional 18,854,775 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of ServiceNow by 335.6% in the fourth quarter. Morgan Stanley now owns 22,733,483 shares of the information technology services provider’s stock valued at $3,482,543,000 after acquiring an additional 17,514,679 shares in the last quarter. Institutional investors and hedge funds own 87.18% of the company’s stock.
ServiceNow News Summary Here are the key news stories impacting ServiceNow this week:
Positive Sentiment: Jefferies expects ServiceNow to deliver solid second-quarter results, with subscription revenue and cRPO likely coming in above guidance. The firm also sees a possible raise to full-year subscription revenue guidance, supported by strong execution, early contract renewals, and AI-related demand. Article Title Positive Sentiment: Cantor Fitzgerald raised its price target on ServiceNow to $141 and kept an overweight rating, signaling confidence in upside if earnings and guidance remain strong. Article Title Positive Sentiment: Morgan Stanley said software sentiment has become “too negative” and named top picks in the sector, reinforcing the idea that high-quality software names like ServiceNow could rebound if the market mood improves. Article Title Neutral Sentiment: ServiceNow is in the spotlight ahead of earnings, with mixed analyst views and a bearish technical setup adding uncertainty into the report. Article Title Neutral Sentiment: ServiceNow is expected to report after the market close on July 22, and several articles frame the stock as a high-stakes earnings setup rather than a clear fundamental change. Article Title Negative Sentiment: CLSA initiated coverage with a bearish view, which has added pressure ahead of earnings and contributed to cautious investor sentiment around the name. Article Title Negative Sentiment: A separate security report said a critical ServiceNow code-execution flaw is being exploited in attacks, which could create near-term reputational and security concerns for the company. Article Title Wall Street Analysts Forecast Growth NOW has been the subject of a number of research reports. Needham & Company LLC reaffirmed a “buy” rating and set a $115.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. Benchmark reissued a “buy” rating on shares of ServiceNow in a research report on Friday. Wells Fargo & Company dropped their price objective on shares of ServiceNow from $185.00 to $160.00 and set an “overweight” rating for the company in a report on Thursday, April 23rd. Raymond James Financial cut their price objective on shares of ServiceNow from $160.00 to $130.00 and set an “outperform” rating for the company in a research report on Thursday, April 23rd. Finally, Truist Financial lifted their target price on shares of ServiceNow from $120.00 to $130.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $139.12.
Get Our Latest Research Report on NOW
ServiceNow Trading Down 2.5% NYSE NOW opened at $102.04 on Wednesday. The firm has a market cap of $105.20 billion, a price-to-earnings ratio of 60.81, a PEG ratio of 1.75 and a beta of 0.96. The firm has a 50 day simple moving average of $104.50 and a 200-day simple moving average of $108.56. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $210.20. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84.
ServiceNow (NYSE:NOW – Get Free Report) last released its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, hitting the consensus estimate of $0.97. The firm had revenue of $3.77 billion during the quarter, compared to analysts’ expectations of $3.75 billion. ServiceNow had a return on equity of 18.16% and a net margin of 12.59%.ServiceNow’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.81 EPS. Equities research analysts anticipate that ServiceNow, Inc. will post 2.33 EPS for the current fiscal year.
Insider Activity In related news, insider Jacqueline P. Canney sold 8,927 shares of the firm’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider owned 29,531 shares of the company’s stock, valued at $2,645,977.60. This trade represents a 23.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $90.14, for a total transaction of $1,482,352.30. Following the transaction, the director owned 30,090 shares of the company’s stock, valued at $2,712,312.60. This trade represents a 35.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 28,071 shares of company stock valued at $2,529,956 over the last three months. 0.34% of the stock is currently owned by corporate insiders.
ServiceNow Profile (Free Report)
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
Featured Articles Five stocks we like better than ServiceNow Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW – Free Report).
Receive News & Ratings for ServiceNow Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ServiceNow and related companies with MarketBeat.com's FREE daily email newsletter.
ABN Amro Investment Solutions decreased its position in ServiceNow, Inc. (NYSE:NOW – Free Report) by 56.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 144,631 shares of the information technology services provider’s stock after selling 188,444 shares during the quarter. ABN Amro Investment Solutions’ holdings in ServiceNow were worth $15,121,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Millstone Evans Group LLC raised its stake in ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its position in shares of ServiceNow by 540.0% during the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 135 shares in the last quarter. Blueline Advisors LLC bought a new position in shares of ServiceNow in the 4th quarter valued at about $25,000. Measured Wealth Private Client Group LLC lifted its holdings in shares of ServiceNow by 560.0% in the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 140 shares during the last quarter. Finally, Wealth Watch Advisors INC grew its position in ServiceNow by 432.3% in the fourth quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock worth $25,000 after acquiring an additional 134 shares in the last quarter. 87.18% of the stock is currently owned by institutional investors.
Insider Transactions at ServiceNow In related news, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the transaction, the insider owned 29,531 shares of the company’s stock, valued at $2,645,977.60. This represents a 23.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul Edward Chamberlain sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $87.23, for a total value of $130,845.00. Following the transaction, the director owned 44,930 shares in the company, valued at $3,919,243.90. The trade was a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 28,071 shares of company stock worth $2,529,956 over the last three months. Company insiders own 0.34% of the company’s stock.
ServiceNow Stock Down 2.5% Shares of NOW opened at $102.04 on Wednesday. The firm has a fifty day moving average price of $104.50 and a 200-day moving average price of $108.56. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $105.20 billion, a P/E ratio of 60.81, a P/E/G ratio of 1.75 and a beta of 0.96. ServiceNow, Inc. has a 12-month low of $81.24 and a 12-month high of $210.20.
ServiceNow (NYSE:NOW – Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.97. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm’s revenue for the quarter was up 22.1% on a year-over-year basis. During the same quarter last year, the business posted $0.81 EPS. Equities research analysts expect that ServiceNow, Inc. will post 2.33 earnings per share for the current year.
Wall Street Analyst Weigh In Several equities research analysts have weighed in on NOW shares. UBS Group boosted their price objective on ServiceNow from $100.00 to $115.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 14th. The Goldman Sachs Group restated a “buy” rating and issued a $145.00 price target (down from $163.00) on shares of ServiceNow in a research report on Wednesday, July 8th. BTIG Research reiterated a “buy” rating and set a $150.00 price objective on shares of ServiceNow in a research report on Monday, June 29th. Stifel Nicolaus reduced their target price on shares of ServiceNow from $135.00 to $120.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Finally, Oppenheimer restated an “outperform” rating and issued a $140.00 target price (up from $130.00) on shares of ServiceNow in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $139.12.
Read Our Latest Analysis on NOW
Key Headlines Impacting ServiceNow Here are the key news stories impacting ServiceNow this week:
Positive Sentiment: Jefferies expects ServiceNow to deliver solid second-quarter results, with subscription revenue and cRPO likely coming in above guidance. The firm also sees a possible raise to full-year subscription revenue guidance, supported by strong execution, early contract renewals, and AI-related demand. Article Title Positive Sentiment: Cantor Fitzgerald raised its price target on ServiceNow to $141 and kept an overweight rating, signaling confidence in upside if earnings and guidance remain strong. Article Title Positive Sentiment: Morgan Stanley said software sentiment has become “too negative” and named top picks in the sector, reinforcing the idea that high-quality software names like ServiceNow could rebound if the market mood improves. Article Title Neutral Sentiment: ServiceNow is in the spotlight ahead of earnings, with mixed analyst views and a bearish technical setup adding uncertainty into the report. Article Title Neutral Sentiment: ServiceNow is expected to report after the market close on July 22, and several articles frame the stock as a high-stakes earnings setup rather than a clear fundamental change. Article Title Negative Sentiment: CLSA initiated coverage with a bearish view, which has added pressure ahead of earnings and contributed to cautious investor sentiment around the name. Article Title Negative Sentiment: A separate security report said a critical ServiceNow code-execution flaw is being exploited in attacks, which could create near-term reputational and security concerns for the company. Article Title About ServiceNow (Free Report)
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
Featured Stories Five stocks we like better than ServiceNow Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW – Free Report).
Receive News & Ratings for ServiceNow Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ServiceNow and related companies with MarketBeat.com's FREE daily email newsletter.
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Acumen Wealth Advisors LLC lifted its holdings in ServiceNow, Inc. (NYSE:NOW – Free Report) by 14,043.6% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 7,779 shares of the information technology services provider’s stock after acquiring an additional 7,724 shares during the period. Acumen Wealth Advisors LLC’s holdings in ServiceNow were worth $813,000 at the end of the most recent reporting period.
Several other hedge funds have also recently modified their holdings of the stock. Florida Financial Advisors LLC boosted its stake in ServiceNow by 5.4% during the second quarter. Florida Financial Advisors LLC now owns 273 shares of the information technology services provider’s stock valued at $280,000 after buying an additional 14 shares during the last quarter. Clark Capital Management Group Inc. raised its holdings in shares of ServiceNow by 3.6% during the 3rd quarter. Clark Capital Management Group Inc. now owns 514 shares of the information technology services provider’s stock worth $473,000 after acquiring an additional 18 shares in the last quarter. American Trust increased its position in ServiceNow by 1.8% in the third quarter. American Trust now owns 1,029 shares of the information technology services provider’s stock worth $947,000 after purchasing an additional 18 shares during the last quarter. Morse Asset Management Inc increased its holdings in shares of ServiceNow by 0.5% in the 2nd quarter. Morse Asset Management Inc now owns 3,488 shares of the information technology services provider’s stock worth $3,586,000 after buying an additional 19 shares during the last quarter. Finally, CYBER HORNET ETFs LLC raised its position in shares of ServiceNow by 3.7% during the 3rd quarter. CYBER HORNET ETFs LLC now owns 567 shares of the information technology services provider’s stock valued at $522,000 after buying an additional 20 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.
ServiceNow News Roundup Here are the key news stories impacting ServiceNow this week:
Positive Sentiment: Jefferies expects ServiceNow to deliver solid second-quarter results, with subscription revenue and cRPO likely coming in above guidance. The firm also sees a possible raise to full-year subscription revenue guidance, supported by strong execution, early contract renewals, and AI-related demand. Article Title Positive Sentiment: Cantor Fitzgerald raised its price target on ServiceNow to $141 and kept an overweight rating, signaling confidence in upside if earnings and guidance remain strong. Article Title Positive Sentiment: Morgan Stanley said software sentiment has become “too negative” and named top picks in the sector, reinforcing the idea that high-quality software names like ServiceNow could rebound if the market mood improves. Article Title Neutral Sentiment: ServiceNow is in the spotlight ahead of earnings, with mixed analyst views and a bearish technical setup adding uncertainty into the report. Article Title Neutral Sentiment: ServiceNow is expected to report after the market close on July 22, and several articles frame the stock as a high-stakes earnings setup rather than a clear fundamental change. Article Title Negative Sentiment: CLSA initiated coverage with a bearish view, which has added pressure ahead of earnings and contributed to cautious investor sentiment around the name. Article Title Negative Sentiment: A separate security report said a critical ServiceNow code-execution flaw is being exploited in attacks, which could create near-term reputational and security concerns for the company. Article Title ServiceNow Stock Down 2.5% Shares of NYSE NOW opened at $102.04 on Wednesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a 50 day moving average price of $104.50 and a 200 day moving average price of $108.56. The firm has a market capitalization of $105.20 billion, a price-to-earnings ratio of 60.81, a PEG ratio of 1.75 and a beta of 0.96. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $210.20.
ServiceNow (NYSE:NOW – Get Free Report) last posted its earnings results on Wednesday, April 22nd. The information technology services provider reported $0.97 EPS for the quarter, meeting analysts’ consensus estimates of $0.97. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The business had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.75 billion. During the same quarter last year, the firm posted $0.81 EPS. The company’s revenue for the quarter was up 22.1% on a year-over-year basis. Sell-side analysts expect that ServiceNow, Inc. will post 2.33 earnings per share for the current year.
Insider Buying and Selling at ServiceNow In related news, Director Anita M. Sands sold 16,445 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $90.14, for a total value of $1,482,352.30. Following the completion of the transaction, the director owned 30,090 shares of the company’s stock, valued at $2,712,312.60. The trade was a 35.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jacqueline P. Canney sold 8,927 shares of the company’s stock in a transaction on Friday, April 24th. The stock was sold at an average price of $89.60, for a total value of $799,859.20. Following the sale, the insider owned 29,531 shares of the company’s stock, valued at approximately $2,645,977.60. This represents a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 28,071 shares of company stock worth $2,529,956. 0.34% of the stock is currently owned by corporate insiders.
Wall Street Analyst Weigh In Several research analysts recently commented on NOW shares. BMO Capital Markets dropped their price target on ServiceNow from $120.00 to $115.00 and set an “outperform” rating for the company in a research report on Thursday, April 23rd. Benchmark reiterated a “buy” rating on shares of ServiceNow in a report on Friday. FBN Securities decreased their price objective on shares of ServiceNow from $160.00 to $120.00 in a research note on Thursday, April 23rd. Canaccord Genuity Group dropped their target price on ServiceNow from $200.00 to $145.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. Finally, Cantor Fitzgerald boosted their price objective on ServiceNow from $122.00 to $141.00 and gave the company an “overweight” rating in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, ServiceNow presently has a consensus rating of “Moderate Buy” and a consensus target price of $139.12.
Read Our Latest Analysis on NOW
About ServiceNow (Free Report)
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
See Also Five stocks we like better than ServiceNow Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW – Free Report).
Receive News & Ratings for ServiceNow Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ServiceNow and related companies with MarketBeat.com's FREE daily email newsletter.
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ServiceNow Inc (NYSE:NOW, XETRA:4S0) is expected to report a solid second-quarter performance, with Jefferies analysts forecasting results above guidance for key subscription metrics and a potential increase to its full-year subscription revenue outlook, supported by strong execution, early customer renewals and AI-related demand.
Ahead of the company's earnings release, Jefferies expects ServiceNow to report second-quarter subscription revenue and constant currency current remaining performance obligations (cRPO) above its guidance, helped by strong execution and customers renewing contracts ahead of planned price increases.
The firm also expects the company to meet third-quarter cRPO expectations and raise its full-year 2026 subscription revenue guidance, supported by early renewals and continued adoption of its NowAssist AI products.
Jefferies expects stronger-than-guided results to be supported by healthy partner activity, early renewals before pricing changes in Australia, improving customer decision-making in Europe, and contributions from recent acquisitions.
The firm also forecast an operating margin beat of around two percentage points, citing lower-than-expected operating expense growth excluding acquisition-related costs.
Feedback from channel partners pointed to stronger-than-expected customer renewal activity during the quarter, as some organizations sought to secure existing pricing before new product packaging and pricing took effect on July 1 in Australia.
Partners also reported growing interest in ServiceNow's NowAssist AI offering, with some enterprise customers making seven-figure commitments ahead of broader deployments. Jefferies said demand continued to be supported by IT operations management and IT service management products, while the company was also seeing success cross-selling its customer relationship management offerings.
Looking ahead, Jefferies expects ServiceNow to issue third-quarter cRPO guidance broadly in line with market expectations while increasing its full-year subscription revenue outlook to reflect stronger second-quarter performance and improved visibility into the second half of the year.
The firm added that investor reaction is likely to depend on the strength of the earnings beat and any signs that demand remains sustainable following the pull-forward of renewals ahead of price increases. Jefferies also said it continues to view the stock's risk-reward profile favorably at current valuation levels.
ServiceNow shares traded down 3% at $102 on Tuesday, down more than 33% so far this year.
ServiceNow Inc (NYSE:NOW, XETRA:4S0) is expected to report a solid second-quarter performance, with Jefferies analysts forecasting results above guidance for key subscription metrics and a potential increase to its full-year subscription revenue outlook, supported by strong execution, early customer renewals and AI-related demand.
Ahead of the company's earnings release, Jefferies expects ServiceNow to report second-quarter subscription revenue and constant currency current remaining performance obligations (cRPO) above its guidance, helped by strong execution and customers renewing contracts ahead of planned price increases.
The firm also expects the company to meet third-quarter cRPO expectations and raise its full-year 2026 subscription revenue guidance, supported by early renewals and continued adoption of its NowAssist AI products.
Jefferies expects stronger-than-guided results to be supported by healthy partner activity, early renewals before pricing changes in Australia, improving customer decision-making in Europe, and contributions from recent acquisitions.
The firm also forecast an operating margin beat of around two percentage points, citing lower-than-expected operating expense growth excluding acquisition-related costs.
Feedback from channel partners pointed to stronger-than-expected customer renewal activity during the quarter, as some organizations sought to secure existing pricing before new product packaging and pricing took effect on July 1 in Australia.
Partners also reported growing interest in ServiceNow's NowAssist AI offering, with some enterprise customers making seven-figure commitments ahead of broader deployments. Jefferies said demand continued to be supported by IT operations management and IT service management products, while the company was also seeing success cross-selling its customer relationship management offerings.
Looking ahead, Jefferies expects ServiceNow to issue third-quarter cRPO guidance broadly in line with market expectations while increasing its full-year subscription revenue outlook to reflect stronger second-quarter performance and improved visibility into the second half of the year.
The firm added that investor reaction is likely to depend on the strength of the earnings beat and any signs that demand remains sustainable following the pull-forward of renewals ahead of price increases. Jefferies also said it continues to view the stock's risk-reward profile favorably at current valuation levels.
ServiceNow shares traded down 3% at $102 on Tuesday, down more than 33% so far this year.
SummaryServiceNow, Inc. has outperformed the software sector in the last 1 month and is poised to lift IGV higher if Q2 results meet or exceed guidance.Key metrics to monitor are cRPO growth, subscription revenue, and the trajectory of AI-driven Now Assist contract value. Meanwhile, margin expectations should remain anchored as well.Valuation remains attractive: NOW trades at 25x FY26 non-GAAP P/E, with earnings growth projected in the high teens to low twenties in the coming years, with analysts revising their estimates.I reiterate a Buy rating on ServiceNow, citing resilient fundamentals, robust large-deal activity, and sector leadership, while holding key technical support levels.Looking for a portfolio of ideas like this one? Members of The REIT Forum get exclusive access to our subscriber-only portfolios. Learn More » J Studios/DigitalVision via Getty Images
Introduction & Investment Thesis Despite the AI shakeout in financial markets from Moonshot AI’s release of the Kimi K3 model and deleveraging in South Korea’s KOSPI index, the software sector (IGV) has
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NOW, IGV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
