ServiceNow (NOW) is set to release its second-quarter 2026 results on July 22. Analysts expect revenues to reach $3.92 billion, reflecting a 22% year-over-year increase. The earnings consensus is anticipated at 86 cents per share, representing a 4.88% growth from Q2 2025.
Despite strong adoption of its AI-native platform and an impressive 130% year-over-year increase in some customer spending metrics, ServiceNow shares have dropped 32.5% year-to-date, underperforming its sector. Increased operating expenses due to recent acquisitions, macroeconomic uncertainties, and stiff competition from major players like Salesforce and Microsoft pose challenges ahead.
ServiceNow aims to reach over $30 billion in subscription revenues by 2030, though its current P/E ratio of 22.60X exceeds industry averages, indicating a potentially stretched valuation at this time.
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