ServiceNow reported Q2 FY2026 results on July 22, 2026, delivering total revenue of $3.987 billion — a 24% year-over-year increase — while crossing a milestone that management had been signaling for quarters: more than $1 billion in cumulative AI Annual Contract Value (ACV). The result confirmed that the enterprise workflow platform is moving from AI pilot to AI deployment at scale, though investors scrutinizing the earnings must contend with a widening gap between headline revenue growth and reported earnings per share.
Part A: What the Filing Discloses
Quarter Overview
ServiceNow's Q2 FY2026 (three months ended June 30, 2026) marked another quarter of consistent above-market growth for enterprise software. The company grew total revenue 24% year-over-year to $3.987 billion, slightly ahead of its subscription revenue guidance. Subscription revenue — representing 97.2% of total revenue — came in at $3.877 billion, up 24.5% on a reported basis and 23% in constant currency. Professional services and other revenue reached $110 million, a comparatively modest 8.5% increase.
Before analyzing the numbers, one structural note is essential: ServiceNow executed a 5-for-1 stock split effective December 17, 2025. All per-share figures cited in this article reflect the post-split basis. Diluted shares outstanding were approximately 1.034 billion on a post-split basis at the end of Q2 2026.
