ServiceNow (NOW)
NYSE:NOW
Want to see NOW full AI Analyst Report?
Earnings Data
Report Date
Jul 29, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.86Last Year’s EPS
0.82Same Quarter Last Year
Strong Buy
Based on 37 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call portrayed strong execution: ServiceNow beat Q1 targets across subscription revenue, RPO, operating margin and free cash flow, reported robust large‑deal activity and rapid adoption of AI products (Now Assist, Employee Works, AI Control Tower) with upward revision to AI expectations (from $1B to ~$1.5B). Management closed Armis early and raised 2026 subscription revenue midpoint by $205M (125 bps contribution), while highlighting continued focus on margin expansion, SBC reductions and share buybacks. Key challenges were timing delays from Middle East on‑prem deals (~75 bps Q1 headwind), near‑term margin impacts from Armis integration (modest bps headwinds), and investor questions about inorganic vs. organic contribution/timing that led to a negative market reaction after hours. Overall the positives — strong beats, accelerating AI traction, large‑deal momentum, high renewal rates and cash returns — outweigh the limited timing and integration headwinds.Company Guidance
Top-line beat and strong subscription growth
Q1 subscription revenue of $3.671 billion, up 19% year-over-year in constant currency, and above the high end of guidance; company called it a "beat and raise".
Robust RPO and current RPO expansion
Remaining performance obligations (RPO) ~ $27.7–$28 billion, growing ~23.5% year-over-year in constant currency; current RPO $12.64 billion, up 21% year-over-year (100 bps above guidance).
Profitability and cash flow outperformance
Non-GAAP operating margin was 32% (50 bps above guidance) in Q1 and free cash flow margin was 44%; executed a $2.0 billion accelerated share repurchase (≈20.2 million shares) with ~ $4.2 billion of buyback authorization remaining.
AI / Now Assist momentum and revised AI revenue trajectory
Now Assist showing strong demand; company raised internal 2026 target from $1.0B to roughly $1.5B of Assist-related revenue and will count only incremental AI contribution to this line.
Large deal activity and customer-base expansion
Closed 16 deals > $5M NNACV (5 deals > $10M) in Q1; 630 customers now generate > $5M ACV; number of customers spending $1M+ grew over 130% year-over-year; deals > $1M grew >30% year-over-year in Q1.
Rapid adoption of acquired assets and new offerings
Moveworks integrated into Employee Works and grew ~5x year-over-year with multiple 7-figure deals (more Q1 deals than whole prior year); AI Control Tower average deal sizes more than doubled Q/Q; Raptor DB Pro deal volume up 80% year-over-year with 5 deals > $1M.
Guidance uplift and Armis contribution
Raised 2026 subscription revenue midpoint by $205 million to $15.735–$15.775 billion (20.5%–21% YoY CC); Armis contributes ~125 basis points of the subscription revenue uplift.
Broad industry and workflow demand
Strong vertical and workflow momentum: Transportation & Logistics net new ACV grew >280% YoY; Financial Services >65% YoY; Energy & Utilities ~45% YoY; Technology workflows and CRM/industry workflows featured heavily in top deals; renewal rate (incl. Moveworks) was 97%.
NOW 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
NOW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | $103.07 | $84.78 | -17.75% |
Jan 28, 2026 | $129.62 | $116.73 | -9.94% |
Oct 29, 2025 | $182.34 | $186.94 | +2.52% |
Jul 23, 2025 | $191.29 | $199.24 | +4.16% |
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 (NOW) report earnings?
ServiceNow (NOW) is schdueled to report earning on Jul 29, 2026, After Close (Confirmed).
What is ServiceNow (NOW) earnings time?
ServiceNow (NOW) earnings time is at Jul 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 NOW EPS forecast?
NOW EPS forecast for the fiscal quarter 2026 (Q2) is 0.86.
