ServiceNow, Inc. (NOW) Q2 FY2026 Financial Statements: Revenue $3.99B, Net income $298.00M
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PeriodQ2 FY2026
Published
ServiceNow reported $3.99 billion in revenue for Q2 FY2026, the quarter ended June 30, 2026, up 24.0% from a year earlier, with subscription revenue of $3.88 billion making up almost all of it. Net income was $298 million, down 22.6% from $385 million, and diluted earnings per share came to $0.29 against $0.37. Reported operating income fell to $162 million, down 54.7%, as amortization of acquired intangible assets, acquisition-related outside services and higher stock-based compensation followed a run of acquisitions completed since late 2025, among them Armis Security and Veza Technologies.
| Metric | Amount | vs. year ago |
|---|---|---|
| Revenue | $3,987,000,000 | up 24.0% |
| Net income | $298,000,000 | down 22.6% |
| Diluted EPS | $0.29 | down 21.6% |
| Subscription revenue | $3,877,000,000 | up 24.5% |
| Operating income | $162,000,000 | down 54.7% |
About this file
| Ticker | NOW |
|---|---|
| CIK | 0001373715 |
| Company | ServiceNow, Inc. |
| Business type | software |
| Schema template | standard (software / subscription): revenue split between subscription and professional services, gross profit, operating income, net income and per-share amounts; cash, debt, assets and equity; operating cash flow, capital expenditures and free cash flow |
| Reporting currency | USD |
| Converted to USD | no |
| Units | actual dollars (not millions); share counts in actual shares; per-share amounts in dollars |
NOW annual income statement, balance sheet and cash flow
| FY2025 | FY2024 | FY2023 | |
|---|---|---|---|
| Fiscal year | 2025 | 2024 | 2023 |
| Label | FY2025 | FY2024 | FY2023 |
| Period start | 2025-01-01 | 2024-01-01 | 2023-01-01 |
| Period end | 2025-12-31 | 2024-12-31 | 2023-12-31 |
| Period type | fiscal year | fiscal year | fiscal year |
| Source accession | 0001373715-26-000007 | 0001373715-26-000007 | 0001373715-26-000007 |
| Balance sheet | |||
| Cash and cash equivalents | 3,726,000,000 | 2,304,000,000 | |
| Marketable securities | 2,558,000,000 | 3,458,000,000 | |
| Accounts receivable net | 2,627,000,000 | 2,240,000,000 | |
| Total current assets | 10,471,000,000 | 9,187,000,000 | |
| Long term marketable securities | 3,771,000,000 | 4,111,000,000 | |
| Strategic investments | 1,542,000,000 | 472,000,000 | |
| Property and equipment net | 2,289,000,000 | 1,763,000,000 | |
| Intangible assets net | 1,121,000,000 | 209,000,000 | |
| Goodwill | 3,578,000,000 | 1,273,000,000 | |
| Total assets | 26,038,000,000 | 20,383,000,000 | |
| Accounts payable | 204,000,000 | 68,000,000 | |
| Deferred revenue current | 8,314,000,000 | 6,819,000,000 | |
| Total current liabilities | 10,443,000,000 | 8,358,000,000 | |
| Long term debt | 1,491,000,000 | 1,489,000,000 | |
| Total liabilities | 13,074,000,000 | 10,774,000,000 | |
| Total stockholders equity | 12,964,000,000 | 9,609,000,000 | |
| Short term debt | 0 | 0 | |
| Total debt | 1,491,000,000 | 1,489,000,000 | |
| Income statement | |||
| Subscription revenue | 12,883,000,000 | 10,646,000,000 | 8,680,000,000 |
| Professional services and other revenue | 395,000,000 | 338,000,000 | 291,000,000 |
| Revenue | 13,278,000,000 | 10,984,000,000 | 8,971,000,000 |
| Subscription cost of revenue | 2,569,000,000 | 1,942,000,000 | 1,606,000,000 |
| Professional services and other cost of revenue | 414,000,000 | 345,000,000 | 315,000,000 |
| Cost of revenue | 2,983,000,000 | 2,287,000,000 | 1,921,000,000 |
| Gross profit | 10,295,000,000 | 8,697,000,000 | 7,050,000,000 |
| Sales and marketing | 4,388,000,000 | 3,854,000,000 | 3,301,000,000 |
| Research and development | 2,960,000,000 | 2,543,000,000 | 2,124,000,000 |
| General and administrative | 1,123,000,000 | 936,000,000 | 863,000,000 |
| Total operating expenses | 8,471,000,000 | 7,333,000,000 | 6,288,000,000 |
| Operating income | 1,824,000,000 | 1,364,000,000 | 762,000,000 |
| Interest income | 451,000,000 | 419,000,000 | 302,000,000 |
| Other income expense net | -14,000,000 | -45,000,000 | -56,000,000 |
| Income before income taxes | 2,261,000,000 | 1,738,000,000 | 1,008,000,000 |
| Provision for income taxes | 513,000,000 | 313,000,000 | -723,000,000 |
| Net income | 1,748,000,000 | 1,425,000,000 | 1,731,000,000 |
| Basic EPS | 1.69 | 1.38 | 1.7 |
| Diluted EPS | 1.67 | 1.37 | 1.68 |
| Basic shares | 1,036,740,000 | 1,029,169,000 | 1,020,685,000 |
| Diluted shares | 1,046,691,000 | 1,042,113,000 | 1,027,953,000 |
| Cash flow | |||
| Depreciation and amortization | 738,000,000 | 564,000,000 | 562,000,000 |
| Stock based compensation | 1,955,000,000 | 1,746,000,000 | 1,604,000,000 |
| Operating cash flow | 5,444,000,000 | 4,267,000,000 | 3,398,000,000 |
| Purchases of property and equipment | -868,000,000 | -852,000,000 | -694,000,000 |
| Business combinations net of cash acquired | -1,084,000,000 | -113,000,000 | -279,000,000 |
| Investing cash flow | -1,689,000,000 | -2,501,000,000 | -2,167,000,000 |
| Repurchases of common stock | -1,840,000,000 | -696,000,000 | -538,000,000 |
| Financing cash flow | -2,340,000,000 | -1,343,000,000 | -803,000,000 |
| Capex | 868,000,000 | 852,000,000 | 694,000,000 |
| Free cash flow | 4,576,000,000 | 3,415,000,000 | 2,704,000,000 |
NOW quarterly income statement, balance sheet and cash flow
| Q2 2026 | Q2 2025 | |
|---|---|---|
| Fiscal year | 2026 | 2025 |
| Fiscal quarter | 2 | 2 |
| Label | Q2 2026 | Q2 2025 |
| Period start | 2026-04-01 | 2025-04-01 |
| Period end | 2026-06-30 | 2025-06-30 |
| Period type | three months | three months |
| Source accession | 0001373715-26-000076; 0001373715-26-000072 | 0001373715-26-000076; 0001373715-26-000072 |
| Balance sheet | ||
| Cash and cash equivalents | 2,503,000,000 | |
| Marketable securities | 2,161,000,000 | |
| Accounts receivable net | 2,201,000,000 | |
| Total current assets | 8,514,000,000 | |
| Long term marketable securities | 2,043,000,000 | |
| Strategic investments | 2,073,000,000 | |
| Property and equipment net | 2,177,000,000 | |
| Intangible assets net | 3,781,000,000 | |
| Goodwill | 9,837,000,000 | |
| Total assets | 31,666,000,000 | |
| Accounts payable | 162,000,000 | |
| Deferred revenue current | 8,057,000,000 | |
| Short term debt | 2,082,000,000 | |
| Total current liabilities | 12,153,000,000 | |
| Long term debt | 5,435,000,000 | |
| Total liabilities | 19,150,000,000 | |
| Total stockholders equity | 12,516,000,000 | |
| Total debt | 7,517,000,000 | |
| Income statement | ||
| Subscription revenue | 3,877,000,000 | 3,113,000,000 |
| Professional services and other revenue | 110,000,000 | 102,000,000 |
| Revenue | 3,987,000,000 | 3,215,000,000 |
| Subscription cost of revenue | 1,030,000,000 | 625,000,000 |
| Professional services and other cost of revenue | 139,000,000 | 99,000,000 |
| Cost of revenue | 1,169,000,000 | 724,000,000 |
| Gross profit | 2,818,000,000 | 2,491,000,000 |
| Sales and marketing | 1,372,000,000 | 1,128,000,000 |
| Research and development | 915,000,000 | 734,000,000 |
| General and administrative | 369,000,000 | 271,000,000 |
| Total operating expenses | 2,656,000,000 | 2,133,000,000 |
| Operating income | 162,000,000 | 358,000,000 |
| Interest income | 70,000,000 | 116,000,000 |
| Other income expense net | 206,000,000 | -3,000,000 |
| Income before income taxes | 438,000,000 | 471,000,000 |
| Provision for income taxes | 140,000,000 | 86,000,000 |
| Net income | 298,000,000 | 385,000,000 |
| Basic EPS | 0.29 | 0.37 |
| Diluted EPS | 0.29 | 0.37 |
| Basic shares | 1,031,351,000 | 1,035,819,000 |
| Diluted shares | 1,034,334,000 | 1,046,608,000 |
| Cash flow | ||
| Depreciation and amortization | 407,000,000 | 172,000,000 |
| Stock based compensation | 652,000,000 | 499,000,000 |
| Operating cash flow | 587,000,000 | 716,000,000 |
| Purchases of property and equipment | -114,000,000 | -190,000,000 |
| Business combinations net of cash acquired | -7,451,000,000 | -58,000,000 |
| Investing cash flow | -6,654,000,000 | -423,000,000 |
| Repurchases of common stock | 0 | -361,000,000 |
| Financing cash flow | 5,874,000,000 | -546,000,000 |
| Capex | 114,000,000 | 190,000,000 |
| Free cash flow | 473,000,000 | 526,000,000 |
NOW year-to-date income statement and cash flow
| Six months ended June 30, 2026 | |
|---|---|
| Label | Six months ended June 30, 2026 |
| Period start | 2026-01-01 |
| Period end | 2026-06-30 |
| Period type | six months |
| Source accession | 0001373715-26-000076 |
| Income statement | |
| Subscription revenue | 7,548,000,000 |
| Professional services and other revenue | 209,000,000 |
| Revenue | 7,757,000,000 |
| Subscription cost of revenue | 1,850,000,000 |
| Professional services and other cost of revenue | 259,000,000 |
| Cost of revenue | 2,109,000,000 |
| Gross profit | 5,648,000,000 |
| Sales and marketing | 2,588,000,000 |
| Research and development | 1,738,000,000 |
| General and administrative | 657,000,000 |
| Total operating expenses | 4,983,000,000 |
| Operating income | 665,000,000 |
| Interest income | 158,000,000 |
| Other income expense net | 288,000,000 |
| Income before income taxes | 1,111,000,000 |
| Provision for income taxes | 344,000,000 |
| Net income | 767,000,000 |
| Basic EPS | 0.74 |
| Diluted EPS | 0.74 |
| Basic shares | 1,033,234,000 |
| Diluted shares | 1,037,206,000 |
| Cash flow | |
| Depreciation and amortization | 665,000,000 |
| Stock based compensation | 1,199,000,000 |
| Operating cash flow | 2,257,000,000 |
| Purchases of property and equipment | -255,000,000 |
| Business combinations net of cash acquired | -8,776,000,000 |
| Investing cash flow | -7,105,000,000 |
| Repurchases of common stock | -2,225,000,000 |
| Financing cash flow | 3,638,000,000 |
| Capex | 255,000,000 |
| Free cash flow | 2,002,000,000 |
| Prior year comparative | |
| Label | Six months ended June 30, 2025 |
| Period start | 2025-01-01 |
| Period end | 2025-06-30 |
| Period type | six months |
| Source accession | 0001373715-26-000076 |
| Income statement | |
| Subscription revenue | 6,118,000,000 |
| Professional services and other revenue | 185,000,000 |
| Revenue | 6,303,000,000 |
| Subscription cost of revenue | 1,186,000,000 |
| Professional services and other cost of revenue | 189,000,000 |
| Cost of revenue | 1,375,000,000 |
| Gross profit | 4,928,000,000 |
| Sales and marketing | 2,182,000,000 |
| Research and development | 1,437,000,000 |
| General and administrative | 500,000,000 |
| Total operating expenses | 4,119,000,000 |
| Operating income | 809,000,000 |
| Interest income | 231,000,000 |
| Other income expense net | -14,000,000 |
| Income before income taxes | 1,026,000,000 |
| Provision for income taxes | 181,000,000 |
| Net income | 845,000,000 |
| Basic EPS | 0.82 |
| Diluted EPS | 0.81 |
| Basic shares | 1,034,963,000 |
| Diluted shares | 1,046,712,000 |
| Cash flow | |
| Depreciation and amortization | 332,000,000 |
| Stock based compensation | 969,000,000 |
| Operating cash flow | 2,393,000,000 |
| Purchases of property and equipment | -395,000,000 |
| Business combinations net of cash acquired | -76,000,000 |
| Investing cash flow | -640,000,000 |
| Repurchases of common stock | -659,000,000 |
| Financing cash flow | -944,000,000 |
| Capex | 395,000,000 |
| Free cash flow | 1,998,000,000 |
NOW trailing twelve month income statement and cash flow
| Trailing twelve months ended June 30, 2026 | |
|---|---|
| Label | Trailing twelve months ended June 30, 2026 |
| Period start | 2025-07-01 |
| Period end | 2026-06-30 |
| Period type | twelve months |
| Source accession | 0001373715-26-000007; 0001373715-26-000076 |
| Basis | fiscal year 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025 |
| Income statement | |
| Subscription revenue | 14,313,000,000 |
| Professional services and other revenue | 419,000,000 |
| Revenue | 14,732,000,000 |
| Subscription cost of revenue | 3,233,000,000 |
| Professional services and other cost of revenue | 484,000,000 |
| Cost of revenue | 3,717,000,000 |
| Gross profit | 11,015,000,000 |
| Sales and marketing | 4,794,000,000 |
| Research and development | 3,261,000,000 |
| General and administrative | 1,280,000,000 |
| Total operating expenses | 9,335,000,000 |
| Operating income | 1,680,000,000 |
| Interest income | 378,000,000 |
| Other income expense net | 288,000,000 |
| Income before income taxes | 2,346,000,000 |
| Provision for income taxes | 676,000,000 |
| Net income | 1,670,000,000 |
| Cash flow | |
| Depreciation and amortization | 1,071,000,000 |
| Stock based compensation | 2,185,000,000 |
| Operating cash flow | 5,308,000,000 |
| Purchases of property and equipment | -728,000,000 |
| Business combinations net of cash acquired | -9,784,000,000 |
| Investing cash flow | -8,154,000,000 |
| Repurchases of common stock | -3,406,000,000 |
| Financing cash flow | 2,242,000,000 |
| Capex | 728,000,000 |
| Free cash flow | 4,580,000,000 |
Adjustments
| Value | |
|---|---|
| Splits applied | 5-for-1 forward split of the common stock, record date December 16, 2025 and effective December 17, 2025. Both the FY2025 10-K and the Q2 2026 10-Q state that all share, equity award and per-share amounts have been retroactively adjusted for the split, so every per-share figure and share count in this record is already on a post-split basis and no further adjustment was made. |
| ADR ratio | n/a |
| FX | None. ServiceNow reports in U.S. dollars, so no currency translation was needed. |
Notes
- Figures are taken from the consolidated statements in the FY2025 Form 10-K (accession 0001373715-26-000007, filed January 29, 2026) and the condensed consolidated statements in the Form 10-Q for the quarter ended June 30, 2026 (accession 0001373715-26-000076, filed July 23, 2026). Both filings state their tables in millions, except that share counts are in thousands; every figure here has been converted to actual dollars and actual shares.
- Periods reported: the 10-K presents fiscal years 2025, 2024 and 2023 on the face of its income statement and cash flow statement, and balance sheets as of December 31, 2025 and 2024 only. FY2023 therefore carries an income statement and a cash flow statement but no balance sheet, because that year's balance sheet is not presented in this filing. The 10-Q presents the three and six months ended June 30, 2026 and 2025, and a balance sheet as of June 30, 2026.
- The 10-Q's statements of cash flows are presented for the six months only. The discrete three-month cash flow figures for the quarters ended June 30, 2026 and June 30, 2025 are taken from the condensed consolidated statements of cash flows in the Q2 2026 earnings release furnished as Exhibit 99.1 to the Form 8-K of July 22, 2026 (accession 0001373715-26-000072), which prints three-month and six-month columns side by side. The six-month columns in that exhibit agree with the 10-Q.
- Free cash flow here is operating cash flow less purchases of property and equipment. ServiceNow also publishes a non-GAAP free cash flow measure that additionally adds back cash outflows for legal settlements and business-combination and other related costs; on that basis the company reported $634 million for the quarter ended June 30, 2026 against the $473 million shown here.
- Total debt is the carrying value of short-term and long-term borrowings as presented on the balance sheet. At June 30, 2026 that is $2.08 billion of commercial paper (a $2.10 billion principal balance net of unamortized discount) plus $5.44 billion of senior notes ($5.50 billion aggregate principal net of unamortized discount and issuance costs). At December 31, 2025 and December 31, 2024 the only borrowings outstanding were the 1.40% senior notes due 2030, carried at $1.49 billion, and there was no short-term debt.
- The step-up in goodwill, intangible assets and debt between December 31, 2025 and June 30, 2026 reflects two acquisitions disclosed in the 10-Q: Armis Security Ltd., acquired April 20, 2026 for preliminary consideration of approximately $7.6 billion in cash, and Veza Technologies, Inc., acquired March 2, 2026 for approximately $1.2 billion, substantially in cash. The company borrowed $4.0 billion under a term loan in April 2026, repaid it in May 2026 largely from the proceeds of $4.0 billion of new senior notes, and had $2.1 billion of commercial paper outstanding at June 30, 2026.
- FY2023 net income of $1.73 billion exceeds pre-tax income of $1.01 billion because the year carried a net income tax benefit of $723 million: the 10-K states that $1.05 billion of the valuation allowance against U.S. federal and state deferred tax assets was released during the year ended December 31, 2023. FY2023 net income and diluted earnings per share are therefore not comparable with the tax-expense years around them.
- Other income (expense), net for the quarter ended June 30, 2026 includes net upward adjustments of $273 million on strategic investments in privately held companies ($360 million for the six months), as disclosed in the 10-Q; the comparable prior-year adjustments were immaterial.
- The trailing-twelve-month block is derived as fiscal year 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025. It carries no per-share amounts or share counts, because weighted-average share counts are not additive across periods.
- The quarterly list holds discrete three-month periods only. The six-month columns the 10-Q prints are reported in the year-to-date block, with the prior-year six months nested inside it as a comparative.
Uncertainties
- The purchase price allocations for the Armis and Veza acquisitions are described in the 10-Q as preliminary and subject to change, so the goodwill, intangible asset and deferred tax balances at June 30, 2026 may be revised in later filings.
- The three-month cash flow figures for the quarters ended June 30, 2026 and June 30, 2025 come from the earnings release exhibit rather than from a Form 10-Q, because the 10-Q presents cash flows for the six-month period only. The six-month columns of that exhibit match the 10-Q line for line, which is the check available on it.
- The balance sheet as of June 30, 2025 is not presented in either filing read for this record, so the quarter ended June 30, 2025 carries an income statement and a cash flow statement only. The same applies to FY2023, whose balance sheet is outside the two years the FY2025 10-K presents.
- Both filings note that, because amounts are displayed in millions, rounding differences may exist within their statements and footnote tables.
Source filings
| Role | Current | Form | Fiscal year | Fiscal period | Tag | Period end | Filed | Accession | Url | Source |
|---|---|---|---|---|---|---|---|---|---|---|
| annual | no | 10-K | 2025 | FY | FY25 | 2025-12-31 | 2026-01-29 | 0001373715-26-000007 | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000007/0001373715-26-000007-index.htm | reported |
| quarterly | yes | 10-Q | 2026 | Q2 | FY26Q2 | 2026-06-30 | 2026-07-23 | 0001373715-26-000076 | https://www.sec.gov/Archives/edgar/data/1373715/000137371526000076/0001373715-26-000076-index.htm | facts |
Company details
| Value | |
|---|---|
| Name | ServiceNow, Inc. |
| Ticker | NOW |
| CIK | 0001373715 |
| Exchange | NYSE |
| State | California |
| Incorporation | Delaware |
| SIC | 7372 |
| Office | Technology |
| Industry | Services-Prepackaged Software |
Fiscal period
| FY2026 | |
|---|---|
| Fiscal year | 2026 |
| Fiscal period | Q2 |
| Tag | FY26Q2 |
| Period end | 2026-06-30 |
| Form | 10-Q |
| Accession | 0001373715-26-000076 |
| Fiscal year end | 1231 |
| Source | facts |
FAQ · ServiceNow financial statements
How much revenue did ServiceNow report in Q2 FY2026?
ServiceNow reported $3.99 billion in revenue for Q2 FY2026, the quarter ended June 30, 2026, up 24.0% from $3.21 billion in the same quarter a year earlier. Subscription revenue was $3.88 billion of that total, up 24.5% year over year.
What was ServiceNow's earnings per share in Q2 FY2026?
ServiceNow reported diluted earnings per share of $0.29 for Q2 FY2026, the quarter ended June 30, 2026, against $0.37 in the same quarter a year earlier. Net income for the quarter was $298 million, down 22.6%.
Why did ServiceNow's profit fall while revenue grew in Q2 FY2026?
ServiceNow's revenue was $3.99 billion in Q2 FY2026, up 24.0% from a year earlier, while reported operating income fell to $162 million from $358 million. ServiceNow attributes that decline in operating income mainly to the cost of its recent acquisitions, including higher amortization of acquired intangible assets in cost of subscription revenues and in sales and marketing, acquisition-related outside services in general and administrative expense, and additional stock-based compensation from awards issued in connection with those deals. Net income of $298 million turns on what happened below the operating line: unrealized gains on strategic investments lifted other income and left income before income taxes down only slightly from a year earlier, so the steeper decline in net income reflects mainly an effective tax rate well above the year-ago rate.
How much of ServiceNow's revenue comes from subscriptions?
Subscription revenue was $3.88 billion of ServiceNow's $3.99 billion in total revenue for Q2 FY2026, the quarter ended June 30, 2026, with the remainder from professional services and other. Subscription revenue was up 24.5% from $3.11 billion a year earlier.
Where can I get ServiceNow, Inc. (NOW) financial data in machine-readable form?
Ticker Scout publishes ServiceNow, Inc.'s financial statements as JSON at https://tickerscout.ai/now/financials.json, free, with no API key and no signup. The 10-K and 10-Q narrative and the 8-K events digest are published as Markdown at https://tickerscout.ai/now/narrative.md and https://tickerscout.ai/now/events.md. ServiceNow, Inc.'s SEC CIK is 0001373715. Every figure cites the SEC accession number it came from, so it can be checked against sec.gov.
When does ServiceNow, Inc. (NOW) next file with the SEC?
ServiceNow, Inc. (NOW) is expected to file its next Form 10-Q with the SEC on or around October 29, 2026. That date is a projection rather than a company-announced date: it is derived from ServiceNow, Inc.'s own filing history with the SEC, by taking the date the company filed the same fiscal period a year earlier and adding 52 weeks. The most recent periodic report on file is the 10-Q for Q2 FY2026, the period ended 2026-06-30, SEC accession 0001373715-26-000076.
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