ServiceNow (NOW) reported strong second-quarter results for 2026, with subscription revenues reaching $3.88 billion, up 24.5% year-over-year. The company secured 50 deals valued over $1 million each in Technology Workflows, including nine deals over $5 million. Significant demand was noted across various segments: Information Technology Service Management appeared in 15 of the top 20 deals, while CRM and Industry Workflows were present in 16 deals, with 15 exceeding the $1 million mark.
ServiceNow’s competitive position is bolstered by high platform adoption, with 18 of its top 20 deals involving at least eight products, and a renewal rate of 98%. The company also reported that 658 customers are generating over $5 million in annual contract value. Looking forward, the company has raised its subscription revenue midpoint for 2026 to $15.77 billion, reflecting a 21% constant-currency growth.
Despite strong results, shares of ServiceNow have declined 11.5% year-to-date, contrasting with the broader Zacks Computer and Technology sector’s 19.9% growth. The forward price/earnings ratio for ServiceNow stands at 28.68, higher than the sector’s 20.85.
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