Here's the hot stuff from ServiceNow $NOW (+2,49%)
(NYSE: NOW) Q2 2026 earnings release, fresh off the US market close:
🚀 Top-line performance & subscription growth
ServiceNow $NOW (+2,49%) reported pure subscription revenue (Subscription Revenues) in the second quarter of 2026, 3.877 billion USD . That represents a whopping +24.5% year-over-year (or +23.0% on a currency-adjusted basis). The company has thus exceeded the upper end of its own forecast. Total Total revenue climbed by +24.0% to $3.987 billion , easily surpassing Wall Street’s expectations of around 3.93 billion USD.
🔮 Order Backlog & Predictability
The fact that momentum isn’t slowing down is demonstrated by the Remaining Performance Obligations (RPO) —that is, the contractually secured business for the future:
The short-term subscription obligations (cRPO), which will be recognized as revenue within the next 12 months, rose by +21.0% to $13.20 billion (+21.5% on a currency-neutral basis).
The total order backlog (Total RPO) also climbed by +21.0% to an impressive 29.0 billion USD. This clearly demonstrates that enterprise customers remain willing to sign long-term, multi-year contracts.
🤖 AI Monetization & Large Customers
While many SaaS competitors still need to explain how they plan to monetize AI, ServiceNow is delivering solid traction:
The ServiceNow AI officially crossed the magic threshold of $1 billion in annual contract value (ACV) in the past quarter.
The use of agent-based AI via Now Assist and Agentic Workflows has increased increased ninefold (9x).
In Q2 alone, management closed 123 major contracts , each with a net new annual contract value (Net New ACV) of more than $1 million .
📈 Margins & Raised Outlook
The company also excels in operational efficiency. Based on a combination of revenue growth and FCF margin, ServiceNow currently achieves a Rule of 56 (the target remains the Rule of 60).
Due to strong operational performance in the first half of the year, management has officially officially revised its full-year forecast for subscription revenues upward.
⚡ 💡 Jack’s takeaway
No sign of SaaS fatigue. ServiceNow proves that a platform that has established itself as a central automation layer for enterprises possesses enormous pricing power. Subscription growth of 24.5% at this revenue level is absolutely top-tier.
