ServiceNow, Inc. reported significant financial results for the second quarter of 2026, with total revenues reaching $3.987 billion, a 24% increase from $3.215 billion in the same period last year. Subscription revenues, which constitute the bulk of the company's income, rose by 25% to $3.877 billion, compared to $3.113 billion in Q2 2025. For the first half of 2026, total revenues were $7.757 billion, up 23% from $6.303 billion in the prior year. However, net income for the quarter decreased to $298 million, or $0.29 per diluted share, down from $385 million, or $0.37 per diluted share, in Q2 2025. The decline in profitability was attributed to increased operating expenses, particularly in sales and marketing, research and development, and general and administrative costs.
The company experienced notable changes in its balance sheet compared to the end of 2025. Total assets increased to $31.666 billion from $26.038 billion, driven by a rise in goodwill and intangible assets following recent acquisitions. ServiceNow completed significant acquisitions, including Armis Security Ltd. for approximately $7.6 billion and Veza Technologies, Inc. for about $1.2 billion, aimed at enhancing its security offerings. These acquisitions contributed to a substantial increase in goodwill, which rose to $9.837 billion from $3.578 billion at the end of 2025.
Operationally, ServiceNow reported a customer base of 658 clients with an annual contract value (ACV) exceeding $5 million, up from 533 in the previous year. The company also noted a renewal rate of 98% for its contracts, indicating strong customer retention. The remaining performance obligations (RPO) stood at $29 billion, with 46% expected to be recognized as revenue within the next 12 months. The company continues to expand its geographic footprint, with revenues from international markets contributing significantly to overall sales.
Looking ahead, ServiceNow anticipates continued growth in subscription revenues and overall business performance. The company expects to maintain its revenue growth trajectory while managing costs associated with its expanding operations and acquisitions. The outlook for the remainder of 2026 includes a focus on enhancing product offerings and customer engagement, with an emphasis on leveraging its recent acquisitions to drive innovation and market share.
About ServiceNow, Inc.
ServiceNow, Inc. provides a cloud-based platform that automates and digitizes enterprise workflows across IT, customer service, HR, security, and industry-specific functions. Its Now Platform leverages AI, including Generative AI, to enhance productivity, streamline processes, and improve user experiences. Serving large enterprises worldwide, the company offers scalable, flexible solutions that connect systems, data, and people to drive digital transformation and operational efficiency.
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