ServiceNow (NYSE: NOW) reported stronger-than-expected second-quarter results and raised its full-year outlook, sending shares higher on renewed investor confidence.
The enterprise software company posted Q2 earnings of $298 million, or 29 cents a share, on total revenue of $3.99 billion, representing a 24% increase from the same period a year ago.
Non-GAAP earnings came in at 90 cents a share, topping Wall Street’s consensus estimate of 86 cents a share on expected revenue of $3.93 billion.
Subscription revenues reached $3,877 million for the quarter ended June 30, 2026, reflecting 24.5% year-over-year growth and 23% growth on a constant currency basis.
CEO Bill McDermott struck an emphatic tone in the company’s earnings commentary, crediting the results to broad strength across the business.
McDermott stated: “ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company.”
The cybersecurity segment drew particular attention from investors and analysts, with McDermott noting that “ServiceNow already was a billion-dollar-plus cybersecurity business.”
He added that ServiceNow’s risk and security business is now the fastest growing of the top 10 cyber companies in the enterprise, a distinction that underscores the company’s expanding footprint in that market.
Current remaining performance obligations for the second quarter totaled $13.2 billion, up 21% from a year ago, signaling strong forward revenue visibility.
ServiceNow completed its $7.8 billion acquisition of cyber asset management firm Armis in recent months, a deal that deepens the company’s position in enterprise security infrastructure.
The company also raised its 2026 AI revenue target to $1.5 billion and reiterated its longer-term goal of surpassing $30 billion in annual subscription revenue by 2030 as AI products become a larger share of the business.
Agentic deployments of ServiceNow AI increased ninefold in just nine months, reflecting accelerating adoption of the company’s artificial intelligence capabilities across its customer base.
The combination of strong quarterly execution, a raised outlook, and rapid AI deployment growth positions ServiceNow as one of the more closely watched names in enterprise software heading into the second half of 2026.
