ServiceNow Inc (NYSE:NOW) reported financial results for the first quarter after the market close on Wednesday. Here’s a rundown of the report.
- ServiceNow stock is trending. Where is NOW stock going?
ServiceNow Q1 Highlights
ServiceNow posted first-quarter revenue of approximately $3.77 billion, beating the consensus estimate of $3.74 billion, according to Benzinga Pro. The software solutions company reported adjusted earnings of 97 cents per share for the quarter, narrowly beating analyst estimates of 96 cents per share.
Total revenue increased 22% year-over-year as Subscription revenue jumped 22%. ServiceNow said it had remaining performance obligations of $27.7 billion at quarter's end, up 25% year-over-year. The company noted that Now Assist customers spending over $1 million in annual contract value grew 130% year-over-year.
“As new technologies create both opportunity and risk, our two decades of engineering combined with deep business context enable us to orchestrate and secure the agentic enterprise,” said Bill McDermott, chairman and CEO of ServiceNow.
“With this foundation, our AI growth is far exceeding even our own expectations, reinforcing our position as one of the fastest growing enterprise software companies ever.”
ServiceNow said it repurchased approximately 20.1 million shares of its common stock in the quarter and ended the period with $4.2 billion remaining on its buyback authorization.
What’s Next For ServiceNow?
ServiceNow expects second-quarter subscription revenue of $3.815 billion to $3.82 billion, representing approximately 21% to 21.5% growth. The company sees full-year 2026 subscription revenue in the range of $15.74 billion to $15.78 billion.
“In Q1 2026, subscription revenue growth saw an approximately 75 basis point headwind from delayed closings of several large on-premise deals in the Middle East, due to the ongoing conflict in the region. This outlook reflects a prudent assessment of those geopolitical headwinds on deal timing for the remainder of FY 2026,” the company said.
In connection with earnings, ServiceNow announced a deepened strategic partnership with Google Cloud, unveiling new AI solutions and agents that bring autonomous operations to large global enterprises.
NOW Shares Fall After The Bell
NOW Price Action: ServiceNow shares were down 14.23% in after-hours, trading at $88.40 at the time of publication on Wednesday, according to Benzinga Pro.
ServiceNow executives will further discuss the quarter on an earnings call at 5 p.m. ET.
Image: Shutterstock.com
Login to comment