ServiceNow (NOW) Q2 FY2026 earnings: revenue $4.0 billion, up 24.0% on the year

ServiceNow, Inc. (NOW) reported revenue of $4.0 billion for Q2 FY2026, the quarter ended 30 June 2026, up 24.0% on the same quarter a year earlier. Net income was $298 million, down 22.6% on the year, and diluted earnings per share $0.29. The figures are the company's own, from the 10-Q it filed with the SEC on 23 July 2026.

Revenue

$4.0 billion

+24.0% on the year · +5.8% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

4.1%

11.1% a year earlier

Q3 FY2024Q2 FY2026

Net income

$298 million

-22.6% on the year · -36.5% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$0.29

-21.2% on the year · -35.6% on the quarter

Q3 FY2024Q2 FY2026

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

What management said

Guidance figures: 2 raised, 5 lowered, 5 new, 3 kept.

Subscription revenue grew 24.5%: Subscription revenues were $3,877 million, up 24.5% year over year and 23% in constant currency. Total revenues were $3,987 million, up 24%.
Results ran above guidance high end: Management said second-quarter subscription revenues exceeded the high end of the guidance range by 150 basis points, helped by net new ACV and on-premise mix.
AI annual contract value crossed $1 billion: ServiceNow AI passed $1 billion in annual contract value in the quarter. Management said AI net new ACV growth continues to outpace expectations.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	3,987	3,770	3,215	+5.8%	+24.0%
Cost of revenue	1,169	940	724	+24.4%	+61.5%
Gross profit	2,818	2,830	2,491	-0.4%	+13.1%
Gross margin	70.7%	75.1%	77.5%
Research and development	915	823	734	+11.2%	+24.7%
Operating income	162	503	358	-67.8%	-54.7%
Operating margin	4.1%	13.3%	11.1%
Interest expense	66.0	n/a	6.0		+1,000.0%
Pre-tax income	438	673	471	-34.9%	-7.0%
Income tax	140	204	86.0	-31.4%	+62.8%
Effective tax rate	32.0%	30.3%	18.3%
Net income	298	469	385	-36.5%	-22.6%
Net margin	7.5%	12.4%	12.0%
Diluted EPS	$0.29	$0.45	$0.37	-35.6%	-21.2%

$ million except per share.

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	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	587	1,670	716	-64.9%	-18.0%
Capital expenditure	114	141	190	-19.1%	-40.0%
Free cash flow	473	1,529	526	-69.1%	-10.1%
Free cash flow margin	11.9%	40.6%	16.4%
Cash from investing	-6,654	-451	-423
Cash from financing	5,874	-2,236	-546
Depreciation and amortisation	374	258	145	+45.0%	+157.9%
Share-based compensation	652	547	499	+19.2%	+30.7%
Buybacks	0.0	2,225	361
Diluted shares, weighted	1,034m	1,040m	1,047m	-0.5%	-1.2%
Shares outstanding at period end	1,034m	1,031m	1,038m	+0.2%	-0.4%

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	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	12,516	11,728	10,932	+6.7%	+14.5%
Debt	7,517	1,491	1,490	+404.2%	+404.5%
Operating lease liabilities	822	822	815	0.0%	+0.9%
Other liabilities	10,811	10,340	8,814	+4.6%	+22.7%
Total liabilities and equity	31,666	24,381	22,051	+29.9%	+43.6%
Fixed assets	2,177	2,250	1,985	-3.2%	+9.7%
Goodwill	9,837	4,541	1,778	+116.6%	+453.3%
Intangible assets	3,781	1,479	319	+155.6%	+1,085.3%
Investments	4,204	5,204	7,663	-19.2%	-45.1%
Cash and equivalents	2,503	2,702	3,124	-7.4%	-19.9%
Receivables	2,201	1,713	1,696	+28.5%	+29.8%
Other assets	6,963	6,492	5,486	+7.3%	+26.9%
Total assets	31,666	24,381	22,051	+29.9%	+43.6%

Questions

What was ServiceNow's revenue in Q2 FY2026?

ServiceNow (NOW) reported revenue of $4.0 billion for Q2 FY2026, the quarter ended 30 June 2026, up 24.0% on the same quarter a year earlier.

How much did ServiceNow earn in Q2 FY2026?

Net income for Q2 FY2026 was $298 million, down 22.6% on the year, and diluted earnings per share $0.29.

When did ServiceNow report Q2 FY2026 results?

ServiceNow filed its 10-Q for the quarter ended 30 June 2026 with the SEC on 23 July 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 30 June 2026, filed 23 July 2026: the filing.