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ServiceNow (IT:1NOW)
:1NOW
Earnings Data
Report Date
Apr 29, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.81Last Year’s EPS
0.68Same Quarter Last Year
Strong Buy
Based on 33 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call portrayed a strong finish to 2025 with multiple beats (revenue, RPO/CRPO, margins, free cash flow) and accelerated AI-driven monetization (Now Assist growth, workflows, partnerships). Management provided confident 2026 guidance with margin expansion and significant cash returns via a $5B repurchase authorization. Near-term headwinds include gross margin pressure from hyperscaler capacity and AI inference costs, a small mix-shift impact in Q1, and modest near-term dilution from announced security-focused acquisitions. On balance, the positives (robust growth, margin and cash-flow outperformance, large deal flow, accelerating AI adoption and partnerships) substantially outweigh the limited near-term challenges.Company Guidance
Subscription Revenue Growth and Beat
Q4 subscription revenues of $3,466,000,000, up 19.5% year-over-year in constant currency, exceeding the high end of guidance by ~150 basis points (company also cited a 21% subscription growth figure in commentary).
Strong RPO / CRPO Performance
RPO ended at approximately $28.2 billion, representing ~22.5% year-over-year constant-currency growth. Current RPO was $12.85 billion, up ~21% year-over-year in constant currency and ~200 basis points ahead of guidance. CRPO growth was reported at 25% (21% in constant currency), ~2 points above guidance.
Margin and Cash Flow Outperformance
Q4 non-GAAP operating margin was 31%, ~100 basis points above guidance. Full-year 2025 operating margin was 31% (up 150 bps YoY). Full-year free cash flow was $4.6 billion (+34% YoY) and full-year free cash flow margin was 35% (up 350 bps YoY). Q4 free cash flow margin was highlighted at 57% (up ~950 bps YoY).
Large Deal Volume and Enterprise Traction
244 deals greater than $1,000,000 in net new ACV in Q4 (including multiple new logos), seven deals greater than $10,000,000 reported, and 603 customers generating over $5,000,000 in ACV. Number of customers contributing $20,000,000+ rose over 30% YoY.
Now Assist & AI Monetization Acceleration
Now Assist surpassed $600,000,000 in ACV; Now Assist NNACV more than doubled YoY in Q4. Q4 saw nearly triple the number of >$1M deals QoQ for Now Assist; customers spending >$1M on Now Assist grew over 40%. Company is tracking toward a $1,000,000,000+ Now Assist ACV target for 2026.
Usage and Workflow Expansion
Monthly active users grew ~25%. Number of workflows grew >33% (from ~60,000,000,000 to ~80,000,000,000) and transactions grew >33% (from ~4,800,000,000,000 to ~6,400,000,000,000), indicating strong engagement and scale.
Industry and Product Area Strength
Transportation & logistics net new ACV >80% YoY; business & consumer services >70% YoY; financial services >40% YoY. ITOM net new ACV grew nearly 50% YoY; security & risk drove ~40% net new ACV growth YoY. Emerging areas (workflow data fabric, Raptor, CPQ, creator workflows) outperformed.
Strategic Partnerships and M&A to Extend Platform
Expanded partnerships with Microsoft, OpenAI, Anthropic, and NTT Data to accelerate AI-native workflows and interoperability. Announced acquisitions (e.g., Armis and VESA/Vezza) to add visibility and identity/governance layers for agentic AI; Armis expected to close in early H2 and expand security TAM.
Capital Allocation — Share Repurchase
Board authorized an incremental $5,000,000,000 share repurchase program with an immediate $2,000,000,000 accelerated share repurchase (ASR). Q4 buybacks of ~3,600,000 shares were completed and the company ended the year with >$10,000,000,000 in cash and investments.
2026 Guidance — Durable Growth and Margin Expansion
FY2026 subscription revenue guidance of $15.53B–$15.57B (19.5%–20% YoY constant-currency growth, including ~1 point from Moveworks). FY2026 operating margin expected at ~32% (up ~100 bps YoY) and free cash flow margin at ~36% (up ~100 bps YoY). Q1 2026 subscription revenue guidance $3.65B–$3.655B (18.5%–19% YoY cc).
IT:1NOW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
IT:1NOW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 28, 2026 | €110.34 | €96.33 | -12.70% |
Oct 29, 2025 | €157.86 | €165.00 | +4.52% |
Jul 23, 2025 | €163.62 | €168.78 | +3.15% |
Apr 23, 2025 | €143.92 | €164.62 | +14.38% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does ServiceNow (IT:1NOW) report earnings?
ServiceNow (IT:1NOW) is schdueled to report earning on Apr 29, 2026, After Close (Confirmed).
What is ServiceNow (IT:1NOW) earnings time?
ServiceNow (IT:1NOW) earnings time is at Apr 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of ServiceNow stock?
The P/E ratio of ServiceNow is N/A.
What is IT:1NOW EPS forecast?
IT:1NOW EPS forecast for the fiscal quarter 2026 (Q1) is 0.81.
