ServiceNow, Inc.: Mixed — EPS $1.00, Revenue $4.11B
Mixed ResultQ3 2026 · After-market
Did ServiceNow, Inc. (NOW) beat earnings today?
It was a mixed report for Q3 2026 — ServiceNow, Inc. (NOW) beat on EPS but missed on revenue.
Earnings Per Share-1.96% surprise
$1.00Actual
Expected: $1.02
vs. year ago +5.3%
Total Revenue+0.39% surprise
$4.11BActual
Expected: $4.09B
vs. year ago +20.5%
Released Oct 28 · 4:10 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $4.11B | $3.41B | +20.5% |
| Revenue detail — reported lines | |||
| └─Subscription | $3.99B | $3.30B | +21.0% |
| └─Professional services and other | $118.00M | $108.00M | +10.0% |
| Net Income | $277.00M | $502.00M | -44.8% |
| GAAP Basic EPS | $0.27 | $0.48 | -43.8% |
| GAAP Diluted EPS | $0.27 | $0.48 | -43.8% |
| Non-GAAP Basic EPS | $1.00 | $0.96 | +4.2% |
| Non-GAAP Diluted EPS | $1.00 | $0.95 | +5.3% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| Subscription revenues | $4,245M-$4,255M (+22.5%-23% YoY, 21.5% CC) | $15,780M-$15,790M (+22.5% YoY, 21% CC) |
| cRPO | 18.5% YoY (18.5% CC) | — |
| GAAP Operating Margin | 12% | 10% |
| Non-GAAP Operating Margin | 32% | 31.5% |
| Non-GAAP Subscription Margin | — | 81% |
| GAAP Subscription Gross Margin | — | 75% |
| GAAP Operating Cash Flow Margin | — | 37% |
| Non-GAAP Free Cash Flow Margin | — | 36% |
| Diluted Shares | 1.05B | 1.04B |
Business Highlights
- ➤Expanded OpenAI partnership introduces a ChatGPT plugin enabled by Action Fabric.
- ➤HPE selected ServiceNow to transform Cloud & AI customer support and field service.
- ➤Stagwell consolidated four service desks across 70+ agencies onto the AI Platform.
- ➤ServiceNow and Google Cloud launched industry solutions integrated with Gemini Enterprise.
- ➤ServiceNow and NVIDIA introduced personal enterprise agent and policy enforcement capabilities.
- ➤Thrive deployed CRM and AI agents for its small- and mid-sized-business customer experience.
- ➤Launched the Control Tower Alliance with founding members including Anthropic, AWS, Cisco, NVIDIA, and OpenAI.
- ➤Announced AI Passport to verify first- and third-party AI agent scopes in real time.
- ➤Introduced EmployeeWorks no-code AI agent building and the ToolSmith developer environment.
- ➤Launched Flow, an AI-native service desk for lightweight conversational workflow execution.
- ➤Unveiled Autonomous Security with six unified cyber-risk prevention and remediation solutions.
- ➤Opened its first dedicated Brazil office in São Paulo and expanded regional academic partnerships.
- ➤Received Forrester, Gartner, Fortune, and Forbes recognition across AI, workplace, and platform categories.
Management Commentary
Bill McDermott, Chairman and CEO
“This was more than another beat-and-raise quarter for ServiceNow, this was the inflection point for ServiceNow as the Super Intelligence Control Tower. Our customers have validated our strategic relevance as the single harness for enterprise intelligence and security. The Control Tower is the elixir that simplifies tech debt, limits token overload and manages unprecedented cybersecurity risk. That’s why AI adoption is accelerating, surging our hybrid business model to $30 billion in RPO, growing 23 percent. What other company at the forefront of the agentic enterprise has no capital or compute constraints? This is a one-of-one, rule of 57(1) growth company firing on all cylinders.”
Gina Mastantuono, President and CFO
“Our strong Q3 results reinforce how ServiceNow is perfectly positioned to help customers put AI to work across their business, govern every agent and action, and translate intelligence into secure, measurable outcomes. Our AI momentum continues to build, with AI net new ACV exceeding expectations and enabling us to raise our year-end target for the second time this year, from $1 billion at the start of the year to $1.7 billion now. Customers are also rapidly increasing their use of agentic AI, with year-to-date consumption in production up more than 13x year-over-year. Importantly, we are capturing this significant opportunity with a capital-efficient model, reducing capex and raising our full-year free cash flow margin target by 100 basis points to 36 percent.”