ServiceNow Q2 Earnings Preview: AI Disruption and Armis Impact in Focus
NOW sits 25% above its 52-week low of $81.24.
Summary
ServiceNow reports Q2 earnings Wednesday after a brutal year for software stocks, with shares down 47%. Analysts expect adjusted EPS of $0.86 on $3.9B in revenue, a 22% jump, but the $7.8B Armis acquisition will pressure margins and add interest costs from a $4B bridge loan. The real focus is the 12-month contract backlog—last quarter's weak guidance triggered an 18% plunge. The company is pivoting hard to AI orchestration and hybrid pricing to counter the threat of AI agents eating into its subscription model. Renewal rates, last at 97%, will be a key signal of whether the strategy is working.
At the time of this announcement, NOW was trading at $101.60 on NYSE in the Technology sector, with a market capitalization of approximately $105.3B. 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 7 out of 10. Source: Dow Jones Newswires.