ServiceNow Beats Q2, Raises 2026 Sub Revenue Forecast on AI Demand
NOW sits 24% above its 52-week low of $81.24.
Summary
ServiceNow delivered a strong Q2, with subscription revenue of $3.88B and adjusted EPS of $0.90, both beating estimates. The company raised its full-year 2026 subscription revenue guidance to $15.760B-$15.780B, up from $15.735B-$15.775B, driven by AI platform adoption. However, Q3 subscription revenue guidance of $3.975B-$3.980B came in slightly below the $4B consensus. Current remaining performance obligations hit $13.20B, up 21% YoY, and total RPO reached $29B, signaling robust demand and longer customer commitments. This follows the May 30th surge on AI Control Tower enthusiasm and the recent news of nearly all 50 U.S. states adopting its AI platform. The beat and raise reinforce the AI-driven growth narrative, though the light Q3 guide may temper near-term enthusiasm. Additionally, the company reported a decline in profit for the quarter.
At the time of this announcement, NOW was trading at $101.11 on NYSE in the Technology sector, with a market capitalization of approximately $98.4B. The 52-week trading range was $81.24 to $210.20. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.