ServiceNow, Inc.
NOW.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q2
ServiceNow delivered Q2 results that topped the high end of its guidance on every top‑line and profitability metric. Non‑GAAP constant‑currency subscription revenue rose 23.0% and current RPO grew 21.5% CC, while operating margin reached 29.5%—a 300‑basis‑point beat—and AI ACV surpassed $1 billion, keeping the company on track for its upgraded $1.5 billion year‑end target. The firm raised full‑year subscription‑revenue guidance by $15 million, underscoring momentum in both its AI and newly emphasized cybersecurity businesses.
Subscription Revenue Growth (CC, Non-GAAP)
23.0%
+150 bps vs. high-end of guidance
Current RPO Growth (CC)
21.5%
+200 bps vs. guidance
Operating Margin (Non-GAAP)
29.5%
+300 bps vs. guidance
ServiceNow AI ACV
>$1.0B
On track to beat $1.5B FY26 target
FY26 Subscription Revenue Guidance
$15.76B - $15.78B
+$15M at midpoint
What We're Watching
Strategic
Execution as a Top-Tier Cybersecurity Vendor
📅
Ongoing
What to Monitor
The growth rate of the cybersecurity business relative to competitors, specific customer wins displacing incumbents, and the attach rate of Armis/Vesa to core platform deals.
Why It Matters
This validates the company's largest strategic bet and TAM expansion play. Success here is critical to the CEO's "re-rating" thesis and would create a powerful new growth engine.
Opportunity
Launch and Adoption of New Product-Led Growth (PLG) Offering
📅
Next Quarter / H2 2026
What to Monitor
The General Availability (GA) announcement of the new conversational service desk, early customer adoption numbers from the beta program, and any initial monetization metrics.
Why It Matters
This is ServiceNow's first major foray into a PLG model, which could significantly expand its TAM into the mid-market and create a new, high-volume customer acquisition channel.
Risk
Commitment to "Headcount Neutral" M&A Integration
📅
By start of FY 2027
What to Monitor
Progress towards achieving a flat total headcount at the start of 2027 compared to pre-acquisition levels. Monitor quarterly headcount trends and any commentary on achieving synergies.
Why It Matters
This is a direct test of management's operational discipline and ability to integrate large acquisitions efficiently. Failure to meet this public commitment would undermine confidence in their ability to deliver promised operating leverage.
Operational
Growth in Agentic AI Production Deployments
📅
Ongoing
What to Monitor
The growth rate of customers with agentic AI in production (stated as 9x over the last 9 months). This is a leading indicator for future consumption revenue.
Why It Matters
This metric moves beyond ACV sales to measure real-world adoption. Sustained high growth here is the most direct signal that the AI consumption "hockey stick" is materializing.
Strategic
Acceleration in CRM Market Penetration
📅
Ongoing
What to Monitor
Continued acceleration of CRM Net New ACV growth, growth in average deal sizes, and customer wins that involve displacing established CRM incumbents.
Why It Matters
CRM represents a massive adjacent TAM. Demonstrating sustained, accelerating growth here proves the extensibility of the ServiceNow platform beyond its IT core.
