Full Transcript: ServiceNow Q2 2026 Earnings Call

ServiceNow (NYSE: NOW ) reported second-quarter financial results on Wednesday.

The transcript from the company's second-quarter earnings call has been provided below.

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The full earnings call is available at Summary ServiceNow Inc reported strong financial results for Q2 2026, with subscription revenue growth of 23% in constant currency, exceeding guidance by 1.5 points, and an operating margin of 29.5%, 3 points above guidance.

The company highlighted its strategic initiatives, including significant advancements in AI, particularly the AI Control Tower, which is gaining traction and contributing to over a billion in AI ACV, with expectations to reach 1.5 billion by the end of 2026.

Management emphasized ServiceNow's growing cybersecurity business, now a billion-dollar-plus segment, and its positioning as a comprehensive AI and cybersecurity solution provider, leveraging acquisitions like Armis and Veza.

ServiceNow raised its full-year subscription revenue guidance to 15.770 billion, representing 21% year-over-year growth, driven by strong U.S. federal demand and robust AI adoption.

The company continues to expand its sales force and partnerships, aiming for growth in the CRM and HR markets, while maintaining strong renewal rates and a high customer contract duration.

Full Transcript Krista, Operator Ladies and gentlemen, thank you for standing by.

My name is Krista and I will be your conference operator today.

At this time, I would like to welcome everyone to the ServiceNow second quarter 2026 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speakers' remarks, there will be a question-and-answer session.

If you would like to ask a question, please press star one on your telephone keypad.

And if you'd like to withdraw your question, again press star one.

We will now turn the conference over to Darren Yip, Senior Vice President, Investor Relations and Market Insights.

Darren, please go ahead.

Darren Yip, Senior Vice President, Investor Relations and Market Insights Good afternoon and thank you for joining ServiceNow's second quarter 2026 earnings conference call.

Joining me are Bill McDermott, our Chairman and Chief Executive Officer, Gina Mastantuono, our President and Chief Financial Officer, and Amit Zavery, President, Chief Product Officer and Chief Operating Officer.

During today's call, we will review our second quarter results and discuss our guidance for the third quarter and full year 2026.

Before we get started, we want to emphasize that the information discussed on this call, including our guidance, is based on information as of today and contains forward-looking statements that involve risks, uncertainties and assumptions.

We undertake no duty or obligation to update such statements as a result of new information or future events.

Please refer to today's earnings press release and our SEC filings, including our most recent 10-Q and 10-K, for factors that may cause actual results to differ materially from our forward-looking statements.

We'd also like to point out that we present non-GAAP measures in addition to, and not as a substitute for, financial measures calculated in accordance with GAAP.

Unless otherwise noted, all financial measures and related growth rates we discussed today are non-GAAP except for revenues, remaining performance obligations (RPO), current RPO, and cash and investments.

To see the reconciliation between these non-GAAP and GAAP measures, please refer to today's earnings press release and investor presentation, which are both posted on our website at investors.servicenow.com.

A replay of today's call will also be posted on our website.

With that, I'll turn the call over to Bill.

Bill McDermott, Chairman and CEO Thank you very much, Darren, and thanks everybody for joining today's call.

I looked at the transcript from an earnings call seven years ago and back then we said ServiceNow would be the defining enterprise software company of the 21st century.

Thought I'd give you a report out.

Since then we beat expectations in every quarterly report, expanded the profitability and free cash flow of the company, quintupled our total addressable market.

Accelerated six of our own unicorns to billion or multibillion dollar businesses, processed billions of workflows and trillions of transactions, grew the partner ecosystem, globally architected the most complete AI Control Tower for the enterprise, maintained our best-in-class renewal rate, increased our brand value, offered our customers deep enterprise context, unlimited choice and differentiated capabilities.

And of course we set a course to 32 billion in revenue in 2030, operating at the rule of 60 and beyond.

So today we're adding a stunning Q2 print to this track record.