ServiceNow (NYSE:NOW) Issues Earnings Results, Beats Estimates By $0.04 EPS

Posted by Brian Himes on Jul 24th, 2026

ServiceNow (NYSE:NOW – Get Free Report) posted its earnings results on Wednesday. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04, FiscalAI reports. The business had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.63%. The firm’s revenue was up 24.0% compared to the same quarter last year. During the same period last year, the company earned $0.81 EPS.

Here are the key takeaways from ServiceNow’s conference call:

ServiceNow delivered a strong Q2, with subscription revenue up 23% constant currency, CRPO up 21.5%, and operating margin at 29.5%, all above the high end of guidance.
AI momentum was a major highlight, as AI ACV surpassed $1 billion and management said the company remains on track to reach $1.5 billion by the end of 2026.
Customer adoption of agentic AI is accelerating, with the number of customers in production growing 9x over the last nine months and first-time AI buyers up more than 45% year over year.
Security is becoming a larger growth engine, with management describing ServiceNow as a $1 billion-plus cybersecurity business that is growing faster than other top enterprise cyber companies.
Management raised full-year 2026 guidance modestly, including subscription revenue to $15.755 billion-$15.770 billion, while also projecting 31.5% operating margin and 35% free cash flow margin.

ServiceNow Stock Performance

Shares of NOW opened at $96.74 on Friday. The stock has a 50 day moving average of $104.70 and a 200 day moving average of $107.77. The company has a market capitalization of $99.74 billion, a price-to-earnings ratio of 58.94, a PEG ratio of 1.60 and a beta of 0.96. ServiceNow has a 12 month low of $81.24 and a 12 month high of $201.15. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13.

Insider Activity

In other news, insider Paul Fipps sold 1,048 shares of ServiceNow stock in a transaction on Monday, May 18th. The stock was sold at an average price of $98.51, for a total transaction of $103,238.48. Following the sale, the insider directly owned 12,072 shares in the company, valued at $1,189,212.72. The trade was a 7.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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 firm’s stock in a transaction dated 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 sale, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 19,144 shares of company stock valued at $1,730,097 in the last ninety days. 0.34% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Sunbelt Securities Inc. raised its position in ServiceNow by 137.1% during the fourth quarter. Sunbelt Securities Inc. now owns 6,266 shares of the information technology services provider’s stock valued at $960,000 after purchasing an additional 3,623 shares in the last quarter. Compound Planning Inc. increased its position in shares of ServiceNow by 415.3% during the 4th quarter. Compound Planning Inc. now owns 14,450 shares of the information technology services provider’s stock valued at $2,214,000 after purchasing an additional 11,646 shares during the last quarter. Invesco Ltd. increased its position in shares of ServiceNow by 326.5% during the 4th quarter. Invesco Ltd. now owns 5,588,524 shares of the information technology services provider’s stock valued at $856,106,000 after purchasing an additional 4,278,076 shares during the last quarter. Axxcess Wealth Management LLC raised its holdings in shares of ServiceNow by 95.1% during the 4th quarter. Axxcess Wealth Management LLC now owns 3,368 shares of the information technology services provider’s stock valued at $516,000 after buying an additional 1,642 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its stake in ServiceNow by 580.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 133,172 shares of the information technology services provider’s stock worth $20,588,000 after buying an additional 113,610 shares in the last quarter. 87.18% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts recently commented on NOW shares. Robert W. Baird upped their target price on ServiceNow from $118.00 to $125.00 and gave the company an “outperform” rating in a research report on Thursday. Guggenheim upgraded ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price target on the stock in a report on Wednesday, July 1st. Bank of America started coverage on shares of ServiceNow in a research report on Monday, May 18th. They set a “buy” rating and a $130.00 price objective for the company. Argus dropped their target price on shares of ServiceNow from $180.00 to $134.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Finally, DA Davidson set a $170.00 price target on shares of ServiceNow and gave the stock a “buy” rating in a report on Monday. One investment 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 given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $143.39.

Check Out Our Latest Stock Analysis on NOW

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: ServiceNow posted Q2 EPS of $0.90 versus $0.86 expected and revenue of $3.99 billion versus $3.93 billion expected, with subscription revenue up 24.5% year over year. ServiceNow Reports Second Quarter 2026 Financial Results
Positive Sentiment: Management raised its annual subscription revenue forecast again, signaling that AI-driven demand is translating into better growth visibility and a larger pipeline. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
Positive Sentiment: AI contract value crossed the $1 billion mark, and several analysts lifted price targets after the beat, reinforcing confidence that ServiceNow can monetize its AI platform. ServiceNow Beats on Q2 Earnings, Raises Full-Year Subscription Outlook
Positive Sentiment: New and expanded partnerships, including with Experian, Leidos, and TeamViewer, suggest broader adoption of the ServiceNow AI Platform across enterprise and public-sector customers. Experian accelerates AI-first experiences with ServiceNow AI Platform
Neutral Sentiment: Analysts remain constructive overall, but some commentary points to mixed demand and a stock that had already been under pressure before earnings, so sentiment may stay volatile. NOW Stock Draws Price Target Hikes After Q2 Beat – Bernstein Sees ‘Relief’ While UBS Warns Of ‘Mixed Demand’
Negative Sentiment: Earlier in the day, shares were pressured by renewed fears that OpenAI and other AI tools could disrupt legacy workflow software, but the earnings report helped counter that narrative. ServiceNow Stock Slides: What’s Happening Today?

About ServiceNow

(Get 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.

Earnings History for ServiceNow (NYSE:NOW)

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