Description

ServiceNow Lifts 2026 Guidance to $15.77 Billion — Is AI Reacceleration Durable?

ServiceNow delivered a strong second quarter of fiscal 2026, exceeding guidance across key financial and operational metrics. Subscription revenues grew 23% year-over-year in constant currency to $3.877 billion, surpassing the high end of the company’s guidance by 150 basis points. Remaining performance obligations (RPO) also showed robust growth, ending at approximately $29 billion, a 22% increase year-over-year on a constant currency basis, with current RPO rising 21.5%. ServiceNow reported an operating margin of 29.5%, beating guidance by 300 basis points, driven by revenue outperformance and timing in marketing spend. Free cash flow margin reached 16%. The company raised its 2026 subscription revenue guidance modestly to a midpoint of $15.77 billion, reflecting ongoing momentum and especially strong demand from the U.S. federal government sector.