ServiceNow Q2 2026 Financial Results:
Revenue was $3.987 billion, an increase of 24% year-over-year; adjusted EPS was $0.90.
Subscription revenue was $3.877 billion, up 24.5% year-over-year.
Net income was $298 million. Non-GAAP net income was $930 million.
Partnerships
ServiceNow and NVIDIADeepened their partnership by extending agent AI governance from the desktop to the data center, launched Project Arc—an enterprise autonomous desktop agent secured by NVIDIA OpenShell—and completed integration of the AI Control Tower with NVIDIA’s validated design for Enterprise AI Factory.
ServiceNow and MicrosoftExpanded the governance scope of the AI Control Tower across the entire Microsoft Agent 365 ecosystem and made ServiceNow AI Experts available through the Microsoft Marketplace.
ServiceNow’s transaction volume on AWS MarketplaceSurpassed $1 billion, and ServiceNow deepened its collaboration with AWS to deliver a unified architecture for joint customers to deploy and scale AI within enterprises.
ServiceNow and AccentureJointly launched a service designed to help enterprises migrate from legacy cybersecurity platforms and automate risk management, threat detection, and compliance.The two companiesalso introduced a cutting-edge deployment engineering program to help enterprises scale artificial intelligence from pilot projects to enterprise-wide deployments.
Bill McDermott, Chairman and Chief Executive Officer of ServiceNow, stated:
“ServiceNow’s exceptional second-quarter performance solidifies our position as the fastest-growing large enterprise software and cybersecurity company. Our strong fundamentals enable us to operate under the ‘Rule of 56’ and are steadily advancing us toward the ‘Rule of 60.’ Powered by our AI Control Tower—which has become a market standard—agent deployments of ServiceNow AI have grown ninefold in just nine months. Our remaining performance obligations of $29 billion reflect longer-term customer contracts and surging demand from our partner ecosystem. We remain steadfast in our vision: to be a company that leads industry transformation—and this is only the beginning.”
As of June 30, 2026, current remaining performance obligations (“cRPO”)—contracted revenue expected to be recognized within the next 12 months—stood at $13.2 billion, an increase of 21% year-over-year, or 21.5% on a constant currency basis. In the second quarter of 2026, the company closed 123 new deals with net annual contract value (“ACV”) exceeding $1 million, representing nearly 40% year-over-year growth. At quarter-end, the number of customers with ACV exceeding $5 million reached 658, up approximately 23% year-over-year.
Gina Mastantuono, President and Chief Financial Officer of ServiceNow, stated:
“Our outstanding second-quarter results vividly demonstrate ServiceNow’s broad market demand, strong execution capabilities, and exceptional operating leverage. We once again exceeded expectations, delivering revenue and profitability metrics above the high end of our guidance range. New AI-related annual contract value (ACV) continues to grow ahead of expectations, with our AI Control Tower driving significant momentum in security and risk offerings. Meanwhile, IT Operations Management (ITOM) benefited from robust demand for the Configuration Management Database (CMDB), which has become a critical foundation for governance and data. While most enterprises are still exploring the return on investment (ROI) of artificial intelligence, ServiceNow is the platform that delivers it.”
Outlook:
For the third quarter of fiscal year 2026, GAAP subscription revenue is expected to be between $3.975 billion and $3.980 billion, representing approximately 20.5% year-over-year growth; full-year 2026 subscription revenue guidance has been raised to between $15.76 billion and $15.78 billion.
Editor/Liam