ServiceNow AI Contract Value Crosses $1 Billion Milestone, Stock Soars
ServiceNow, Inc. Common Stock (NYSE: NOW ) shares are surging premarket on Thursday as it reported strong second-quarter earnings on Wednesday. Earnings Snapshot Adjusted EPS of 90 cents beat the Street estimate of 85 cents, according to Pro data. Revenue clocked in at $3.99 billion, which beat the analyst consensus estimate of $3.93 billion. Subscription revenue rose 24.5% year-over-year (Y/Y) to $3.88 billion, 1.5 percentage points above guidance. Current remaining performance obligations (RPO) increased 21% Y/Y to $13.2 billion, while total RPO reached nearly $29 billion, up 21% Y/Y in the quarter. Read Also: ServiceNow Stock Consolidates as Accenture Launches Agentic AI Offerings Adjusted operating margin came in at 29.5%, 300 basis points above guidance, supported by revenue outperformance and cost discipline. Remaining performance obligations of $29 billion as of second quarter...
ServiceNow, Inc. Common Stock (NYSE: NOW ) shares are surging premarket on Thursday as it reported strong second-quarter earnings on Wednesday. Earnings Snapshot Adjusted EPS of 90 cents beat the Street estimate of 85 cents, according to Pro data. 93 billion.
5 percentage points above guidance. 2 billion, while total RPO reached nearly $29 billion, up 21% Y/Y in the quarter. 5%, 300 basis points above guidance, supported by revenue outperformance and cost discipline. Remaining performance obligations of $29 billion as of second quarter 2026, representing 21% Y/Y growth.
5 billion 2026 target. 5x Y/Y. Customers deploying agentic AI in production rose 9x over the past nine months. ServiceNow secured 123 deals with more than $1 million in net new ACV, up 40% Y/Y.
The company ended the quarter with 658 customers generating over $5 million in ACV, including 32 more customers above the $20 million threshold. Renewal rates remained strong at 98%, highlighting continued customer adoption. Cybersecurity also surpassed $1 billion in revenue, supported by acquisitions such as Armis and Veza. 77 billion, implying 21% Y/Y growth.
S. federal demand and accelerating AI adoption. 980 billion and cRPO growth of 20% Y/Y in constant currency. 5% operating margin and 35% free cash flow margin for the fiscal year 2026.
Management reaffirmed its long-term target of reaching $32 billion in revenue by 2030 while sustaining a Rule of 60+ growth profile. ServiceNow executives expressed confidence in the company’s third quarter and full-year outlook. The CEO highlighted an upcoming announcement around a conversational service desk experience and noted that cybersecurity has grown into a 10-figure business for the company. Experian & TeamViewer Partnership In a separate release today, the company expanded its partnership with Experian to accelerate enterprise AI adoption through the integration of Experian’s Ascend Platform with the ServiceNow AI Platform.
The collaboration will embed Experian’s data, insights, and decisioning capabilities into ServiceNow workflows, enabling AI agents to improve automation across areas such as employee onboarding, third-party risk management, and model governance. Apart from this, ServiceNow penned a multi-year technology partnership with TeamViewer to integrate TeamViewer’s Digital Employee Experience and Remote Connectivity solutions with the ServiceNow AI Platform. The collaboration will combine their capabilities to deliver end-to-end autonomous IT solutions, supported by joint go-to-market investments. 58 during premarket trading Thursday.
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