Business
ServiceNow Reports First Quarter 2026 Financial Results
SANTA CLARA, Calif., April 22, 2026--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced financial results for its first quarter ended March 31, 2026, with subscription revenues of $3,671 million in Q1 2026, representing 22% year-over-year growth and 19% in constant currency.
About this update from Servicenow, Inc.
SANTA CLARA, Calif., April 22, 2026 --( BUSINESS WIRE )--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced financial results for its first quarter ended March 31, 2026, with subscription revenues of $3,671 million in Q1 2026, representing 22% year-over-year growth and 19% in constant currency. "ServiceNow’s first quarter performance beat the high end of our guidance once again," said ServiceNow Chairman and CEO Bill McDermott. "Since our founding, we’ve built our platform around the work customers need to accomplish. Today, they rely on ServiceNow to be their AI control tower for business reinvention. Customers trust our platform because we integrate with any model, cloud, interface, data, and system they choose to deploy. 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. 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." As of March 31, 2026, current remaining performance obligations ("cRPO"), contract revenue that will be recognized as revenue in the next 12 months, was $12.64 billion, representing 22.5% year-over-year growth and 21% in constant currency. The company had 16 transactions over $5 million in net new annual contract value ("ACV") in Q1 2026, representing nearly 80% year-over-year growth, and ended the quarter with 630 customers with more than $5 million in ACV, representing approximately 22% year-over-year growth. "In Q1, we exceeded the high end of our topline and profitability guidance metrics, grew free cash flow, and returned capital to shareholders," said ServiceNow President and CFO Gina Mastantuono. "The early close of our Armis acquisition meaningfully expands our TAM and accelerates our subscription revenue growth trajectory. With agentic AI, workflow orchestration, security, and data fabric converging on a single platform, we believe the most compelling chapter in ServiceNow's growth story is just beginning." Recent Business Highlights Innovation This quarter, ServiceNow advanced enterprise AI into new product categories, new ways of working, and a new commercial model. Partnerships ServiceNow's partner ecosystem expanded significantly in Q1, with leading companies building on the platform to deliver AI at a global scale. Industry Expansion This quarter, the ServiceNow AI Platform drove measurable outcomes across multiple industries, turning industry depth into operational results. Acquisitions ServiceNow closed two acquisitions that are designed to give enterprises a unified, end-to-end security stack that can see, decide, and act across the entire technology footprint. Investment Recognition ServiceNow's leadership in AI innovation and workplace culture earned recognition from analysts and institutions across the industry. First Quarter 2026 GAAP and Non-GAAP Results: The following table summarizes our financial results for the first quarter 2026: Financial Outlook Our guidance includes GAAP and non‑GAAP financial measures. The non‑GAAP growth rates for subscription revenues are adjusted for constant currency by excluding the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non-GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business. In Q1 2026, subscription revenues 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. Our Q2 2026 subscription revenues growth, Q2 2026 cRPO growth, and FY 2026 subscription revenues growth guidance each include approximately 125 basis points of contribution from Armis. A portion of Armis customer contracts include termination‑for‑convenience provisions, which limit the amount of contract value reflected in cRPO. The acquisition is also expected to create headwinds of approximately 25 basis points to FY 2026 subscription gross margin, approximately 75 basis points to FY 2026 operating margin, approximately 200 basis points to FY 2026 free cash flow margin, and approximately 125 basis points to Q2 2026 operating margin. While we will see some near-term headwinds to margins as we integrate the business in FY 2026, strong AI efficiencies internally from Now on Now and our underlying platform leverage are expected to normalize our operating and free cash flow margin expansion trajectories in FY 2027. The following table summarizes our guidance for the second quarter 2026: The following table summarizes our guidance for the full-year 2026: Conference Call Details The conference call will begin at 2 p.m. Pacific Daylight Time (21:00 GMT) on April 22, 2026. Interested parties may listen to the call by dialing (888) 330‑2455 (Passcode: 8135305), or if outside North America, by dialing (240) 789‑2717 (Passcode: 8135305). Individuals may access the live teleconference from this webcast . https://events.q4inc.com/attendee/481376230 An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial (800) 770‑2030 (Passcode: 8135305), or if outside North America, by dialing (647) 362‑9199 (Passcode: 8135305). Investor Presentation Details An investor presentation providing additional information, including forward-looking guidance, and analysis can be found at https://investors.servicenow.com . Financial Analyst Day ServiceNow will host its Financial Analyst Day 2026 on Monday, May 4, at 1:30 p.m. PT in Las Vegas, Nevada. This half‑day program will feature presentations by ServiceNow executives who will provide financial updates and showcase ServiceNow’s latest capabilities for AI-driven workflows and platform innovation. A livestream will also be available the day of the event and a replay will be posted the following day at https://investors.servicenow.com . Upcoming Investor Conferences ServiceNow today announced that it will attend and have executives present at five upcoming investor conferences. These include: The live webcast for each will be accessible on the investor relations section of the ServiceNow website at https://investors.servicenow.com and archived on the ServiceNow site for a period of 30 days. Statement Regarding Use of Non-GAAP Financial Measures We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP and non-GAAP results for gross profit, income from operations, net income, net income per share, and free cash flow. Use of Forward-Looking Statements This release contains "forward-looking statements" regarding our performance, including but not limited to statements in the section entitled "Financial Outlook" and statements regarding the expected benefits of our announced partnerships and acquisitions. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Factors that may cause actual results to differ materially from those in any forward-looking statements include, among others, experiencing an actual or perceived cyber-security event or weakness; our ability to comply with evolving privacy laws, data transfer restrictions, and other foreign and domestic standards related to data and the Internet; errors, interruptions, delays or security breaches in or of our service or data centers; our ability to maintain and attract key employees and manage workplace culture; alleged violations of laws and regulations, including those relating to anti-bribery and anti-corruption and those relating to public sector contracting requirements; our ability to compete successfully against existing and new competitors; our ability to predict, prepare for and respond promptly to rapidly evolving technological, market and customer developments; our ability to grow our business, including converting remaining performance obligations into revenue, adding and retaining customers, selling additional subscriptions to existing customers, selling to larger enterprises, government and regulated organizations with complex sales cycles and certification processes, and entering new geographies and markets; our ability to develop and gain customer demand for and acceptance of existing, new and improved products and services, including products that incorporate AI technology; our ability to expand and maintain our partnerships and partner programs, including expected market opportunity from such relationships, and realize the anticipated benefits thereof; global macroeconomic and political conditions including tariffs, inflation and armed conflicts; fluctuations in the value of foreign currencies relative to the U.S. Dollar; fluctuations in interest rates; our ability to consummate and realize the benefits of any strategic transactions or acquisitions; our ability to execute share repurchases, including the timing, manner, price, and amount of any repurchase; and fluctuations and volatility in our stock price. Further information on these and other factors that could affect our financial results are included in our Form 10-K for the year ended December 31, 2025, and in other filings we make with the Securities and Exchange Commission from time to time. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter. About ServiceNow ServiceNow (NYSE: NOW) is the AI control tower for business reinvention. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise. By unifying legacy systems, departmental tools, cloud applications, and AI agents, ServiceNow provides a single pane of glass that connects intelligence to execution across every corner of business. With more than 95 billion workflows running on the platform each year, ServiceNow helps organizations turn fragmented operations into coordinated, autonomous workflows that deliver measurable results. Learn how ServiceNow puts AI to work for people at www.servicenow.com . © 2026 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated. View source version on businesswire.com: https://www.businesswire.com/news/home/20260422839830/en/ Contacts Media Contact: Johnna Hoff (408) 250-8644 [email protected] Investor Contact: Darren Yip (925) 388-7205 [email protected]