ServiceNow CEO Bill McDermott Hails '10-Figure Cybersecurity Business' as Q2 Subscription Revenue Surges 23% to $3.88 Billion

ServiceNow Inc. (NYSE: NOW ) reported a second-quarter beat on Wednesday, and its Chairman and CEO Bill McDermott highlighted an emerging position in enterprise risk and compliance, hailing its “10-figure cybersecurity business” as subscription revenues surged 23% year-over-year in constant currency to $3.88 billion.

Total quarterly revenue reached $3.99 billion, surpassing analyst consensus estimates.

Financial Beat & Cyber Growth McDermott emphasized that ServiceNow is rapidly expanding beyond traditional IT workflows into security orchestration, accelerated by recent acquisitions like Armis and Veza. “We now have a 10-figure cybersecurity business that’s growing faster than all the other top cybersecurity companies,” McDermott stated during the earnings call.

He added that the performance solidifies ServiceNow’s position as the “fastest-growing major enterprise software and cybersecurity company,” declaring, “We are who we said we were: a defining company that is only just getting started.” The enterprise software provider delivered non-GAAP earnings of $0.90 per share, topping Wall Street expectations of $0.85 per share.

Following the strong second quarter performance, ServiceNow raised its full-year 2026 subscription revenue guidance to $15.77 billion, representing 21% year-over-year growth.

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Management reported that deployments of agentic AI increased ninefold over the last nine months.

Current remaining performance obligations (cRPO) closed at $13.20 billion, up 21.5% year-over-year in constant currency.

Analyst Perspective on AI Moat Market experts validated ServiceNow’s cost advantages over custom enterprise AI builds.

Shay Boloor, Chief Market Strategist at Futurum Equities, noted that enterprises will avoid building proprietary AI agents because doing so can cost “5x to 10x” more than running them on ServiceNow.

Boloor added that ServiceNow acts as the control layer for “any agent, any workflow, any model,” highlighting that 50% of the company’s net new business is already non-seat-based. $NOW CEO Bill McDermott says enterprises will not build their own AI agents because it can cost "5x to 10x" more than running them on ServiceNow He sees ServiceNow as the control layer for "any agent, any workflow, any model" with 50% of net new business already non-seat-based pic.twitter.com/fk6NxV2YoR — Shay Boloor (@StockSavvyShay) July 22, 2026 How Has NOW Performed In 2026? NOW shares declined 37.69% year-to-date, up 2.63% over the last month, and lower by 50.40% over the year.

It closed 6.47% lower at $95.46 per share on Wednesday, and it was up 7.24% in premarket on Thursday. ’s Edge Stock Rankings indicate that NOW maintains a weak price trend in the short, long, and medium terms, with a solid growth score.

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