ServiceNow earnings
ServiceNow’s next results are expected on October 28, 2026. Watch subscription and cRPO growth, guidance and federal demand.
What has ServiceNow guided for 2026?
Management’s July 22 outlook calls for 2026 subscription revenue of $15,760–$15,780 million, growing 22.5%. At constant currency, which removes exchange-rate effects, growth is expected to be 21.0%; excluding Armis, the recently acquired cybersecurity company, it is 19.8%.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Subscription revenues | Year to Dec 2026 | 15,760 | 15,780 | Jul 22, 2026 |
| Subscription revenues, Year/Year Growth (%) | Year to Dec 2026 | 22.5% | 22.5% | Jul 22, 2026 |
| Subscription revenues, Constant Currency Year/Year Growth (%) | Year to Dec 2026 | 21.0% | 21.0% | Jul 22, 2026 |
| Income from operations, Margin (%) — Non-GAAP | Year to Dec 2026 | 31.5% | 31.5% | Jul 22, 2026 |
| Subscription revenues | Quarter to Sep 2026 | 3,975 | 3,980 | Jul 22, 2026 |
| Subscription revenues, Year/Year Growth (%) | Quarter to Sep 2026 | 20.5% | 20.5% | Jul 22, 2026 |
| Subscription revenues, Constant Currency Year/Year Growth (%) | Quarter to Sep 2026 | 20.0% | 20.0% | Jul 22, 2026 |
| cRPO, Year/Year Growth (%) | Quarter to Sep 2026 | 19.5% | 19.5% | Jul 22, 2026 |
| Income from operations, Margin (%) — Non-GAAP | Quarter to Sep 2026 | 31.0% | 31.0% | Jul 22, 2026 |
| GAAP operating margin | Year to Dec 2026 | 10.0% | 10.0% | Jul 22, 2026 |
| GAAP operating margin | Quarter to Sep 2026 | 8.0% | 8.0% | Jul 22, 2026 |
What this means. ServiceNow’s reported growth includes the Armis acquisition, while our lower computed figures remove Armis’s estimated contribution, so the numbers are not directly comparable.
Did ServiceNow keep its past promises?
The company has delivered against guidance, with qualifications. Its October 2025 outlook called for annual subscription revenue of US$12.835–12.845 billion. The reported result was US$12.883 billion. In July 2026, Gina Mastantuono again reported results above guidance, while noting that some federal revenue had shifted forward from the following quarter. Timing and currency therefore matter when judging execution.
How have ServiceNow revenue and profit trended?
Total revenue growth eased from 30.5% in 2021 to 20.9% in 2025. Subscription revenue grew approximately 21.0% in 2025, while constant-currency growth was 20%. Constant currency translates both years at comparable exchange rates, so a stronger euro does not look like extra software sold. Q2 2026 subscription growth was 24.5% as reported and 23% in constant currency, making the latter the cleaner starting point for judging demand.
June 2026 exposed the difference between operating economics and bottom-line profit. Subscription gross margin fell to 73% from 80%. Operating income was $162 million, while net income was $298 million, supported by investment gains of $273 million and a California tax benefit of $51 million. The adjusted measures and tax bridge belong beside the reported results.
| Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3,987 | 3,770 | 3,568 | 3,407 | 3,215 | 3,088 | 2,957 | 2,797 |
| Gross margin | 70.7% | 75.1% | 76.6% | 77.3% | 77.5% | 78.9% | 78.7% | 79.1% |
| Operating income | 162 | 503 | 443 | 572 | 358 | 451 | 374 | 418 |
| Net income | 298 | 469 | 401 | 502 | 385 | 460 | 384 | 432 |
| EPS, diluted | 0.29 | 0.45 | 0.38 | 0.48 | 0.37 | 0.44 | 0.37 | 0.41 |
| = Free cash flow | 473 | 1,529 | 2,000 | 569 | 526 | 1,438 | 1,372 | 469 |
What this means. The earnings per share figures are adjusted for a five-for-one stock split, so the September 2024 and September 2025 numbers were divided by five to match the newer share count.
What should I watch in ServiceNow’s next results?
Investors should compare subscription and cRPO growth with the Q3 outlook and listen to management’s explanation of federal demand. A slower Q3 revenue figure could reflect the earlier pull-forward; weaker contract growth alongside it would be more troubling.