ServiceNow Q2 results top estimates on 24% revenue growth; increases outlook

ServiceNow's (NOW) second quarter 2026 financial results surpassed expectations as it increased revenue by 24% year over year.

Shares climbed 5% during early post-market trading on Wednesday.

Revenue for the quarter ended June 30 totaled $3.98B, which was more than the consensus estimate of $3.93B. The enterprise software firm reported adjusted earnings per share of $0.90 versus the estimate of $0.86.

"ServiceNow's exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company," said ServiceNow CEO Bill McDermott. "The company's sterling fundamentals have us operating to the Rule of 56, well on our way to the Rule of 60. With our AI Control Tower as the market standard, agentic deployments of ServiceNow AI increased ninefold in just nine months. Our $29 billion in remaining performance obligations is fueled by longer customer commitments and skyrocketing demand from our partner ecosystem. We are who we said we were: a defining company that is only just getting started."

ServiceNow has increased its revenue by more than 20% year over year for five consecutive quarters.

Looking ahead, ServiceNow expects its third quarter revenue to increase 20.5% year over year to range from $3.975B to $3.98B. This was just short of the $4B estimate.

It projects its full-year subscription revenue to range from $15.76B to $15.78B, which would represent a 22.5% year-over-year increase at the midpoint. The company previously projected $15.74B to $15.78B. The estimate calls for $15.74B.

Despite shares falling 37% year to date, ServiceNow continues to have strong ratings from investment firms. More than 90% of the sell-side analysts covering the stock give the company a Buy rating.