ServiceNow, Inc.
ServiceNow, Inc. Q2 FY26 Results — Earnings Call Analysis
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
What the Q2 FY26 call signalled
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The short version
- ServiceNow expects significant growth driven by AI integration into their platform, shifting from experimentation to full-scale deployment. - Subscription Revenue Growth: Raised 2026 subscription revenue guidance to $15.735-$15.775 billion, representing 20.5%-21% YoY growth on a constant currency basis.
From ServiceNow, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- ServiceNow expects significant growth driven by AI integration into their platform, shifting from experimentation to full-scale deployment.
- The 2026 AI revenue target has increased from $1 billion to $1.5 billion, indicating accelerated AI-driven revenue growth.
- Q1 saw a 19% year-over-year constant currency growth in subscription revenues ($3.671 billion), exceeding guidance.
- Net new ACV growth accelerated to over 50% year-over-year in Q1, including the largest net new logo deal of over $15 million.
- 16 deals greater than $5 million closed in Q1, including 5 deals over $10 million; 630 customers generating over $5 million in ACV.
- Moveworks integration rapidly expanded EmployeeWorks, driving significant revenue with 6 deals above $1 million in net new ACV shortly after launch.
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Profitability & Margins
See what ServiceNow, Inc. said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- The transcript does not explicitly mention specific current or future capital expenditures (capex) plans.
- Strategic investments highlighted include acquisitions like Armis, Veza, and Moveworks, aimed at expanding AI capabilities and platform innovation.
- The company focuses heavily on integrating these acquisitions to drive innovation and growth, rather than acquiring for short-term revenue.
- Investment emphasis is on expanding AI-native platforms, workflow orchestration, security, and data fabric on a unified platform.
- They are prioritizing platform consolidation by eliminating point solutions and leveraging platforms like ServiceNow.
- AI and enterprise-wide deployment are driving budget reallocation within customer spending.
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Fundraising & Capital Structure
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Order Book & Pipeline
- Q1 RPO (Remaining Performance Obligations) ended at approximately $27.7 billion, representing 23.5% YoY constant currency growth.
- Current RPO was $12.64 billion, representing 21% YoY constant currency growth, beating guidance by 100 basis points.
- Q2 cRPO growth expected at 19.5% constant currency, including a 125 basis point contribution from Armis.
- Customers are showing broad-based demand with strong deal sizes: 16 deals over $5 million in Q1, 5 deals over $10 million, and largest net new logo deal over $15 million.
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What ServiceNow, Inc.'s management said in earlier quarters
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Frequently Asked Questions
What were ServiceNow, Inc. Q2 FY26 results?
- ServiceNow expects significant growth driven by AI integration into their platform, shifting from experimentation to full-scale deployment. - Subscription Revenue Growth: Raised 2026 subscription revenue guidance to $15.735-$15.775 billion, representing 20.5%-21% YoY growth on a constant currency basis.
What is ServiceNow, Inc. share price analysis?
ServiceNow, Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 59.5 with a market cap of $112,101. Investors should review the full earnings analysis for detailed insights.
Is ServiceNow, Inc. planning capital expenditure?
- The transcript does not explicitly mention specific current or future capital expenditures (capex) plans.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.