Servicenow, Inc. (NOW)

ServiceNow reported second-quarter 2026 total revenues of $3,987 million on 22 July, up 24 percent from a year earlier 1.

Subscription revenues, the fees customers pay for access to the software, were $3,877 million, and the company said they grew 24.5 percent 21.

Income from operations, profit from running the business before interest and tax, fell to $162 million from $358 million a year earlier 2.

The 10-Q ties higher subscription costs to more staff, data center spending and the amortization of intangible assets bought in acquisitions 2.

Remaining performance obligations, contracted revenue not yet recognized, were $29.0 billion, up 21 percent 1.

The company said strong U.S. federal demand pulled some on-premise subscription revenue forward from the third quarter into the second 1.

On 20 April it bought Armis Security, a cyber-exposure company, for preliminary consideration of about $7.6 billion in cash 2.

In 2020 total revenues were $4,519 million, up 31 percent on the year before 6.

The company said subscription revenues rose by $1.0 billion in 2020 because existing customers bought more and it added customers 6.

In 2022 total revenues reached $7,245 million, up 23 percent 5.

Subscription revenues rose by $1.3 billion that year, mainly on purchases by new and existing customers 5.

Total revenues were $8,971 million in 2023 and $10,984 million in 2024, a 22 percent rise in the second year 4.

Of the 2024 subscription revenues, $409 million came from self-hosted software, which customers run themselves, recognized upfront on delivery 4.

In 2025 total revenues were $13,278 million, up 21 percent, and subscription revenues rose by $2.2 billion 3.

Self-hosted software delivered upfront added $492 million to 2025 subscription revenues, against $409 million in 2024 3.

On 15 December 2025 the company bought Moveworks, Inc. for total purchase consideration of $2.4 billion 3.

Its board declared a 5-for-1 stock split on 5 December 2025, effective 17 December, so each old share became five 2.

In the first half of 2026 total revenues were $7,757 million, against $6,303 million a year earlier 2.

On 2 March 2026 it bought Veza Technologies, a private AI identity security company, for about $1.2 billion, substantially in cash 2.

The company took a term loan to pay part of the Armis price and repaid it in May, mainly from a $4.0 billion notes offering 27.

The platform and its product areas

The ServiceNow AI Platform is a cloud-based system that connects people, processes and data so that work can move across an organization's departments 3.

Its products sit in four areas: Technology (IT, risk and security), CRM and Industry, Core Business (HR, legal and finance) and Creator and Other 3.

Now Assist is the built-in AI offering, and customers can choose the company's models or others, and use out-of-the-box or custom AI agents 3.

Subscriptions were 97 percent of 2025 revenue 3.

At the end of 2025 it had about 8,700 customers, mostly large enterprises 3.

On 30 June 2026, 658 customers had annual contract value above $5 million, against 533 a year earlier 2.

In the second quarter North America brought in $2,522 million, EMEA (Europe, Middle East and Africa) $997 million, and Asia Pacific and other $468 million 2.

AI and security

The company said its AI products passed $1 billion in annual contract value in the second quarter, and nearly all 50 U.S. states use the platform 1.

Otto, launched at its Knowledge conference in May, is one AI assistant that joins Now Assist, Moveworks and AI Experience to complete work across systems 1.

AI Control Tower is the tool that lets a company see and govern every AI system and agent it runs, wherever they run 1.

Veza adds identity security and Armis adds a view of connected devices, both feeding the Security Operations product 2.

Partners and rivals

The annual report names Microsoft, Oracle, SAP, Salesforce and Workday among its competitors, along with new AI entrants and in-house tools 3.

The company said it passed $1 billion in AWS Marketplace transactions 1.

Anthropic became the first design partner of ServiceNow Action Fabric, which connects Claude to ServiceNow workflows and actions 1.

People and offices

Bill McDermott is chairman and chief executive, and Gina Mastantuono is president and chief financial officer 1.

Its principal office in Santa Clara, California is leased, at about 973,000 square feet 3.

At the annual meeting on 21 May 2026, shareholders approved adding 38,000,000 shares to the reserve of the 2021 Equity Incentive Plan 8.

The umbrella, in words

The main product names are Now Assist, Otto and AI Control Tower, and, from acquisitions, Moveworks, Armis and Veza 12.

The annual report's list of subsidiaries includes Moveworks, LLC, Logik.io Inc., data.world, Inc., LightStep, Inc., Mission Secure, Inc. and Raytion GmbH, beside many regional sales and development units 9.

It owns, by having bought all the shares, Veza, Armis and Moveworks 23.

The annual report says all of its properties are leased 3.

Chairman and CEO William McDermott holds a board seat as a person, elected with 689,481,259 votes for and 77,993,257 against 8.

For the third quarter the company guided subscription revenues of $3,975 million to $3,980 million, growth of 20.5 percent 1.

For full-year 2026 it guided subscription revenues of $15,760 million to $15,780 million, up 22.5 percent 1.

The company estimated a foreign exchange headwind of about $35 million to third-quarter cRPO, the contract revenue due in the next 12 months 1.

At its 4 May analyst day the company set targets of $30 billion or more in subscription revenue, 30 percent of contract value from AI and a Rule of 60 by 2030 1.

The Rule of 60 adds subscription revenue growth to free cash flow margin and asks for a total above 60 percent 1.

It also committed to cut stock-based compensation, pay given in shares, to under 10 percent of revenue by 2029 1.

In January 2026 the board authorized $5.0 billion more for share repurchases, with no fixed expiration date 2.