ServiceNow, the U.S. enterprise software company known for automating workflows like IT service management and HR operations, is betting on an Indian banking software specialist to deepen its push into global financial services.
ServiceNow, Inc. (NOW) Q2 2026 Earnings Call Transcript
ServiceNow NYSE: NOW reported stronger-than-expected second-quarter 2026 results, with executives pointing to broad demand across artificial intelligence, cybersecurity, IT operations, customer relationship management and employee workflows.
The headline numbers for ServiceNow (NOW) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
ServiceNow (NOW) came out with quarterly earnings of $0.9 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.82 per share a year ago.
The company said sales were boosted by strong demand from the U.S. federal government, which accelerated some on-premise subscription revenues.
“The attack surface is exploding,” CEO Bill McDermott said.
ServiceNow Inc (NYSE:NOW, XETRA:4S0) is expected to report a solid second-quarter performance, with Jefferies analysts forecasting results above guidance for key subscription metrics and a potential increase to its full-year subscription revenue outlook, supported by strong execution, early customer renewals and AI-related demand. Ahead of the company's earnings release, Jefferies expects ServiceNow to report second-quarter subscription revenue and constant currency current remaining performance obligations (cRPO) above its guidance, helped by strong execution and customers renewing contracts ahead of planned price increases.
ServiceNow, Inc. has outperformed the software sector in the last 1 month and is poised to lift IGV higher if Q2 results meet or exceed guidance. Key metrics to monitor are cRPO growth, subscription revenue, and the trajectory of AI-driven Now Assist contract value. Meanwhile, margin expectations should remain anchored as well. Valuation remains attractive: NOW trades at 25x FY26 non-GAAP P/E, with earnings growth projected in the high teens to low twenties in the coming years, with analysts revising their estimates.
With Texas Instruments (NASDAQ:TXN | TXN Price Prediction) and ServiceNow (NYSE:NOW) both reporting Q2 2026 results after market close on Wednesday, July 22, 2026, the question for investors is simple: which name is Wall Street actually leaning into ahead of the same-session report?
ServiceNow presents a compelling turnaround opportunity as it operates in a $600B TAM, expanding beyond ITSM into a world-class enterprise platform. Kraft Heinz offers defensive appeal with a 6.4% dividend yield, a potential Berkshire Hathaway catalyst, and rebounding technicals supporting a strong buy thesis. GigaCloud trades at a bargain multiple despite double-digit growth, a pristine balance sheet, and operational excellence, warranting strong buy conviction.
ServiceNow stock has dropped and underperformed the market this year as demand for software companies waned. NOW has dropped by 32% this year and 46% in the last 12 months, erasing billions of dollars in value.