ServiceNow (NYSE:NOW) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

ServiceNow (NYSE:NOW) issued its quarterly earnings data on Wednesday. The information technology services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.04, FiscalAI reports. ServiceNow had a net margin of 12.59% and a return on equity of 18.16%. The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. During the same period in the previous year, the firm earned $0.81 EPS. ServiceNow’s revenue was up 24.0% on a year-over-year basis.

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 Trading Down 6.4%

Shares of NOW stock opened at $95.50 on Thursday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 0.84. The stock has a market capitalization of $98.46 billion, a P/E ratio of 56.91, a price-to-earnings-growth ratio of 1.71 and a beta of 0.96. The company has a 50 day moving average price of $104.67 and a 200 day moving average price of $108.16. ServiceNow has a fifty-two week low of $81.24 and a fifty-two week high of $210.20.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on NOW shares. Stifel Nicolaus dropped their price target on shares of ServiceNow from $135.00 to $120.00 and set a “buy” rating for the company in a research report on Thursday, April 23rd. Cantor Fitzgerald increased their price objective on shares of ServiceNow from $122.00 to $141.00 and gave the stock an “overweight” rating in a research report on Monday. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 target price on shares of ServiceNow in a report on Thursday, July 16th. Sanford C. Bernstein reissued an “outperform” rating on shares of ServiceNow in a research report on Thursday. Finally, Wells Fargo & Company decreased their price target on ServiceNow from $185.00 to $160.00 and set an “overweight” rating on the stock in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $139.32.

Trending Headlines about ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: ServiceNow beat Q2 earnings and revenue estimates, with subscription revenue growth of 24.5% and management raising full-year subscription guidance again. ServiceNow raises annual subscription revenue forecast again on AI-driven demand
• Positive Sentiment: AI demand remains a major driver, with AI ACV topping $1 billion and management positioning ServiceNow as a control layer for enterprise AI safety and governance. ServiceNow Inc (NOW) Q2 2026 Earnings Call Highlights
• Positive Sentiment: New and expanded partnerships with Experian, Leidos, TeamViewer, and Exclusive Networks suggest broader adoption of the ServiceNow AI Platform across industries and regions. Experian accelerates AI-first experiences with ServiceNow AI Platform
• Neutral Sentiment: ServiceNow’s CEO used the earnings call and media appearances to emphasize cybersecurity momentum and AI safety controls, which supports the long-term story but is not a direct financial catalyst. ServiceNow CEO defends the company’s relevancy, touting a kill switch for rogue AI agents
• Negative Sentiment: Some investors remain cautious because software peers have warned about AI-related disruption and delayed buying decisions, keeping sentiment around the stock mixed despite the strong quarter. Why ServiceNow Stock Was Slipping Today

Insider Buying and Selling at ServiceNow

In other ServiceNow news, insider Jacqueline P. Canney sold 8,927 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $89.60, for a total transaction of $799,859.20. Following the sale, the insider directly owned 29,531 shares in the company, valued at $2,645,977.60. This represents a 23.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Paul Fipps sold 1,048 shares of the business’s 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 completion of the transaction, the insider owned 12,072 shares of the company’s stock, valued at approximately $1,189,212.72. This trade represents a 7.99% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold 28,071 shares of company stock valued at $2,529,956 in the last quarter. Corporate insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On ServiceNow

Several large investors have recently bought and sold shares of the stock. AlphaCentric Advisors LLC acquired a new position in shares of ServiceNow during the fourth quarter worth about $25,000. Bank of Jackson Hole Trust increased its stake in shares of ServiceNow by 534.6% during the fourth quarter. Bank of Jackson Hole Trust now owns 165 shares of the information technology services provider’s stock worth $25,000 after buying an additional 139 shares during the period. Wealth Watch Advisors INC raised its holdings in ServiceNow by 432.3% in the fourth quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after acquiring an additional 134 shares in the last quarter. Golden State Wealth Management LLC lifted its stake in ServiceNow by 378.0% in the fourth quarter. Golden State Wealth Management LLC now owns 282 shares of the information technology services provider’s stock worth $43,000 after acquiring an additional 223 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in ServiceNow by 4,157.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 298 shares of the information technology services provider’s stock worth $46,000 after acquiring an additional 291 shares during the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.

About ServiceNow

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.