ServiceNow (NOW) Q1 FY2026 earnings: revenue $3.8 billion, up 22.1% on the year

ServiceNow, Inc. (NOW) reported revenue of $3.8 billion for Q1 FY2026, the quarter ended 31 March 2026, up 22.1% on the same quarter a year earlier. Net income was $469 million, up 2.0% on the year, and diluted earnings per share $0.45. The figures are the company's own, from the 10-Q it filed with the SEC on 23 April 2026.

Revenue

$3.8 billion

+22.1% on the year · +5.7% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

13.3%

14.6% a year earlier

Q2 FY2024Q1 FY2026

Net income

$469 million

+2.0% on the year · +17.0% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$0.45

+2.3% on the year · +18.4% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 raised, 8 lowered, 10 new.

Subscription revenue grew 22 percent: Subscription revenues were $3,671 million, up 22% and 19% in constant currency; total revenues were $3,770 million, also up 22%.
Subscription revenue above Q1 guidance range: Q1 subscription revenues of $3,671 million compared with the $3,650 million to $3,655 million range given when Q1 guidance was set.
Autonomous Workforce launched: A new class of AI specialists that run enterprise jobs end-to-end; the first is a Level 1 Service Desk AI Specialist that resolves common IT requests.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	3,770	3,568	3,088	+5.7%	+22.1%
Cost of revenue	940	834	651	+12.7%	+44.4%
Gross profit	2,830	2,734	2,437	+3.5%	+16.1%
Gross margin	75.1%	76.6%	78.9%
Research and development	823	773	703	+6.5%	+17.1%
Operating income	503	443	451	+13.5%	+11.5%
Operating margin	13.3%	12.4%	14.6%
Pre-tax income	673	541	555	+24.4%	+21.3%
Income tax	204	140	95.0	+45.7%	+114.7%
Effective tax rate	30.3%	25.9%	17.1%
Net income	469	401	460	+17.0%	+2.0%
Net margin	12.4%	11.2%	14.9%
Diluted EPS	$0.45	$0.38	$0.44	+18.4%	+2.3%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	1,670	2,238	1,677	-25.4%	-0.4%
Capital expenditure	141	238	205	-40.8%	-31.2%
Free cash flow	1,529	2,000	1,472	-23.5%	+3.9%
Free cash flow margin	40.6%	56.1%	47.7%
Cash from investing	-451	-498	-217
Cash from financing	-2,236	-739	-398
Depreciation and amortisation	258	212	160	+21.7%	+61.3%
Share-based compensation	547	494	470	+10.7%	+16.4%
Buybacks	2,225	597	298	+272.7%	+646.6%
Diluted shares, weighted	1,040m	1,047m	1,047m	-0.7%	-0.7%
Shares outstanding at period end	1,031m	1,047m	1,035m	-1.5%	-0.3%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	11,728	12,964	10,139	-9.5%	+15.7%
Short-term borrowings	n/a	0.0	n/a
Debt	1,491	1,491	1,490	0.0%	+0.1%
Operating lease liabilities	822	800	806	+2.8%	+2.0%
Other liabilities	10,340	10,783	8,537	-4.1%	+21.1%
Total liabilities and equity	24,381	26,038	20,972	-6.4%	+16.3%
Fixed assets	2,250	2,289	1,885	-1.7%	+19.4%
Goodwill	4,541	3,578	1,305	+26.9%	+248.0%
Intangible assets	1,479	1,121	230	+31.9%	+543.0%
Investments	5,204	6,329	7,563	-17.8%	-31.2%
Cash and equivalents	2,702	3,726	3,369	-27.5%	-19.8%
Receivables	1,713	2,627	1,359	-34.8%	+26.0%
Other assets	6,492	6,368	5,261	+1.9%	+23.4%
Total assets	24,381	26,038	20,972	-6.4%	+16.3%

Questions

What was ServiceNow's revenue in Q1 FY2026?

ServiceNow (NOW) reported revenue of $3.8 billion for Q1 FY2026, the quarter ended 31 March 2026, up 22.1% on the same quarter a year earlier.

How much did ServiceNow earn in Q1 FY2026?

Net income for Q1 FY2026 was $469 million, up 2.0% on the year, and diluted earnings per share $0.45.

When did ServiceNow report Q1 FY2026 results?

ServiceNow filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 23 April 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022 †	Q2 FY2022 †	Q3 FY2022 †	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,615	1,722	1,752	1,831	1,940	2,096	2,150	2,288	2,437	2,603	2,627	2,797	2,957	3,088	3,215	3,407	3,568	3,770	3,987	4,106
Cost of revenue	375	369	389	400	415	438	471	496	516	520	552	584	631	651	724	774	834	940	1,169	1,211
Gross profit	1,240	1,353	1,363	1,431	1,525	1,658	1,679	1,792	1,921	2,083	2,075	2,213	2,326	2,437	2,491	2,633	2,734	2,830	2,818	2,895
Gross margin	77%	79%	78%	78%	79%	79%	78%	78%	79%	80%	79%	79%	79%	79%	77%	77%	77%	75%	71%	71%
R&D	392	414	444	456	454	492	521	549	562	606	643	626	668	703	734	750	773	823	915	956
Operating income	35.0	87.0	22.0	91.0	155	144	117	231	270	332	240	418	374	451	358	572	443	503	162	385
Operating margin	2%	5%	1%	5%	8%	7%	5%	10%	11%	13%	9%	15%	13%	15%	11%	17%	12%	13%	4%	9%
Interest expense	7.0	6.0	6.0	8.0	7.0	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	6.0	6.0	n/a	n/a	66.0	81.0
Pre-tax income	32.0	85.0	29.0	102	183	188	174	299	347	425	334	516	463	555	471	694	541	673	438	370
Tax rate	19%	12%	31%	22%	18%	20%	-500%	19%	15%	18%	22%	16%	17%	17%	18%	28%	26%	30%	32%	25%
Net income	25.8	75.0	20.0	80.0	150	150	1,044	242	295	347	262	432	384	460	385	502	401	469	298	277
Net margin	2%	4%	1%	4%	8%	7%	49%	11%	12%	13%	10%	15%	13%	15%	12%	15%	11%	12%	7%	7%
Diluted EPS	$0.02	$0.07	$0.02	$0.08	$0.15	$0.15	$1.02	$0.23	$0.29	$0.33	$0.25	$0.41	$0.37	$0.44	$0.37	$0.48	$0.38	$0.45	$0.29	$0.27
Operating cash flow	844	863	433	265	1,162	902	580	311	1,605	1,341	620	671	1,635	1,677	716	813	2,238	1,670	587	839
Capital expenditure	100	93.0	151	162	144	165	132	136	261	135	262	202	253	205	190	235	238	141	114	91.0
Free cash flow	744	770	282	103	1,018	737	448	175	1,344	1,206	358	469	1,382	1,472	526	578	2,000	1,529	473	748
Buybacks	n/a	n/a	n/a	n/a	n/a	0.0	0.0	282	256	175	0.0	225	296	298	361	584	597	2,225	0.0	0.0
Shares outstanding	998m	1,002m	1,008m	1,012m	1,014m	1,018m	1,022m	1,023m	1,024m	1,027m	1,029m	1,032m	1,032m	1,035m	1,038m	1,038m	1,047m	1,031m	1,034m	1,038m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2026, filed 23 April 2026: the filing.