AI-extracted from the 10-Q filed 2026-07-23 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
ServiceNow Q2 revenue reached $3.99B (+24% YoY), driven by subscription growth, but operating income fell 55% YoY due to $6.3B in acquisition-related amortization from Armis and Veza deals.
Biggest Revenue Drivers
Subscription$3.88B+25% YoY
Increased purchases by new and existing customers
Professional services and other$110M+8% YoY
Increase in services and trainings provided to new and existing customers
Biggest Revenue Drivers
Total revenue: $3.99B+24% YoY
Subscription$3.88B+25% YoY
Increased purchases by new and existing customers
Professional services and other$110M+8% YoY
Increase in services and trainings provided to new and existing customers
Largest Expense Items
Cost of subscription revenues$1,030M+65% YoY
Higher headcount, amortization of intangible assets (+$153M), cloud service costs (+$63M), and data center depreciation
Increased headcount and personnel-related costs (+$162M)
General and administrative$369M+36% YoY
Outside services largely related to acquisitions (+$61M) and personnel-related costs (+$56M)
Margins: Subscription gross margin declined to 73% in Q2 2026 from 80% YoY, primarily due to ongoing third-party cloud services expansion, amortization of acquired intangibles, and incremental costs for regulated market compliance. Operating margin compressed significantly due to $6.3B acquisition-related goodwill and intangible charges from Armis and Veza.
Watch Items from the Filing
One U.S. federal channel partner and systems integrator represented 13% of total revenues for Q2 2026 and 12% of accounts receivable as of June 30, 2026; no historical collection concerns noted.
Subscription gross margin expected to decline further through 2026 due to amortization of $3.7B in intangible assets and third-party cloud service expansion.
Professional services segment operating at 26% gross loss in Q2 2026 versus 3% profit YoY, as personnel and partner ecosystem spend outpacing revenue growth; company expects this to worsen in 2026.
RPO reached $29.0B as of June 30, 2026, with 46% representing 12-month cRPO; increasing percentage of contracts in non-USD currencies (Euro, GBP) creates foreign exchange exposure.
Company completed $8.8B in acquisitions (Armis $7.6B, Veza $1.2B) in H1 2026 and incurred $101M in acquisition-related costs; ongoing DOJ investigation related to hiring practices could impact operations.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
61 transactions in NOW reported by 18 members of Congress under the STOCK Act, most recent trade Apr 24, 2026. Reported transactions, not recommendations.
About ServiceNow, Inc. (NOW): stock profile, AI score and financials
ServiceNow, Inc. (NOW) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores NOW at 74.8/100 on a composite quality score built from its SEC filings, placing it at rank #102 of 2,925 stocks — the top 5% of the AI-ranked universe. NOW scores in the top quartile across revenue scale (89.7), free cash flow (85.3), revenue growth (82.3). Shareholder dilution risk is elevated at 11.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), ServiceNow, Inc. reports quarterly revenue of $4.0B, net income of $298.0M, an operating margin of 4.1%. Top institutional holders of NOW by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. NOW trades on the NYSE exchange and files with the SEC under CIK 1373715. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate NOW daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ServiceNow, Inc. directly from SEC EDGAR.