ServiceNow Raises Full-Year Subscription Guidance on Q2 Earnings Beat and $1 Billion AI Sales
ServiceNow reported second-quarter subscription revenue of $3.99 billion, beating estimates, and raised its full-year subscription revenue outlook to a range of $15.76 billion to $15.78 billion. The company also announced that annual contract value for its artificial intelligence business crossed $1 billion in the quarter. Adjusted earnings per share came in at $0.90, exceeding the $0.86 estimate.
CEO Bill McDermott stated during the earnings call that the company prefers to act as the control layer for AI workflows rather than allowing enterprises to build their own agents, citing that in-house development would cost customers five to ten times more. Current remaining performance obligations rose 21% to $13.2 billion, while active user licenses continued to grow.
From the sources (9 posts)
@tradfi*SERVICENOW 2Q REV. $3.99B, EST. $3.93B *SERVICENOW RAISES FY 2026 SUBSCRIPTION REV GUIDANCE $NOW
@alphasenseinc$NOW Earnings: - Subscription revenues of $3,877 million in Q2 2026, representing 24.5% year-over-year growth, 23% in constant currency - EPS: $.90 - Total revenues of $3,987 million in Q2 2026, representing 24% year-over-year growth, 22.5
@trendspiderServiceNow Q2 Earnings DOUBLE BEAT 🔥 Adj. EPS: $0.90 vs $0.85 est Sales: $3.987B vs $3.928B est $NOW 🟩 +3.99%
@wallstengineSERVICENOW $NOW Q2’26 EARNINGS HIGHLIGHTS 🔹 Subscription: $3.88B; +24.5% YoY, +23% cc 🔹 Total Revenue: $3.99B (Est. $3.92B) 🟢; +24% YoY, +22.5% cc 🔹 Adj. EPS: $0.90 (Est. $0.86) 🟢 🔹 cRPO: $13.20B (Est. ~$13.03B) 🟢; +21% YoY, +21.5% cc Q3
@stocksavvyshay$NOW Q2 EARNINGS • Revenue $3.99B vs Est. $3.92B • EPS $0.90 vs Est. $0.86 • Operating Margin 30% vs. Est. 27% • cRPO $13.20B vs Est. $13.03B Q3 Guidance • Subscription Revenue $4.0B vs Est. $4.1B • cRPO 19.5% vs Est. 18.5% ServiceNo
@thetranscript_ServiceNow CFO: "Once again, we beat the high end of our guidance range across every topline and profitability metric." $NOW: +5% AH
@wallstengine$NOW CEO Bill McDermott says enterprises are unlikely to build their own AI agents: “The influx of AI creates more activity for IT, not less.” “Are we worried about seed compression? Not at all. Our addressable user base is growing, and 5
@stocksavvyshay$NOW CEO Bill McDermott says enterprises will not build their own AI agents because it can cost “5x to 10x” more than running them on ServiceNow He sees ServiceNow as the control layer for “any agent, any workflow, any model” with 50% of n
@alphasenseinc$NOW CEO Bill McDermott says frontier models need to get activated in the enterprise, and whoever teams up with ServiceNow wins because of their 100 billion workflows and nearly 8 trillion transactions in flight. They have a kill switch for