NOW Stock Surges 7% After-Hours As ServiceNow Beats Q2 Estimates, Lifts Full-Year Outlook

• ServiceNow reported second-quarter revenue of $3.99 billion and adjusted EPS of $0.90, both ahead of consensus estimates.
• Current remaining performance obligations (cRPO), a key measure of future revenue, climbed 21% year over year to $13.2 billion.
• The company raised its full-year subscription revenue guidance after a stronger-than-expected second quarter.

Shares of ServiceNow Inc. (NOW) jumped more than 7% in after-hours trading on Wednesday after the company topped the high end of its guidance across all second-quarter 2026 topline growth and profitability metrics and raised its full-year subscription revenue outlook.

The stock ended the regular session down nearly 6.5% before reversing course following the results. At the time of writing, ServiceNow shares had pared some of their after-hours gains but were still up 5%.

ServiceNow Tops Q2 Estimates

ServiceNow reported second-quarter revenue of $3.99 billion, up 24% year-over-year and ahead of the $3.92 billion consensus estimate, according to Fiscal.ai Fiscal.ai. Subscription revenue came in at $3.88 billion, rising 24.5% year over year, or 23% on a constant currency basis. The company also posted adjusted earnings per share of $0.90, topping the consensus estimate of $0.86, according to Fiscal.ai.

ServiceNow reported current remaining performance obligations (cRPO) — a closely watched metric for the company — of $13.2 billion, up 21% year over year. The metric, which represents the portion of backlog expected to convert into revenue over the next 12 months, topped the company’s prior guidance.

ServiceNow said its AI offerings have surpassed $1 billion in annual contract value. The company ended the second quarter with 658 customers generating more than $5 million in annual contract value, representing around 23% year-over-year growth.

NOW Raises Full-Year Subscription Revenue Outlook

ServiceNow raised its fiscal 2026 subscription revenue guidance to $15.76 billion to $15.78 billion, up from its previous outlook of $15.73 billion to $15.77 billion, according to TheFly.

For the third quarter, the company expects subscription revenue of $3.97 billion to $3.98 billion and adjusted constant currency growth of 20%.

ServiceNow, based in Santa Clara, California, develops software that helps businesses manage technology and business operations.

Strong US Federal Demand Boosted Results

ServiceNow said second-quarter subscription revenue exceeded the high end of its guidance range, driven by a combination of stronger-than-expected net new Annual Contract Value (ACV) performance and a higher mix of on-premise revenue.

The company said the stronger on-premise revenue mix was primarily attributable to strong U.S. federal demand, which accelerated some on-premise subscription revenue from the third quarter into the second quarter. ServiceNow said it raised its full-year subscription revenue guidance to reflect the strength in net new ACV.

NOW Stock: What Stocktwits Retail Sentiment Says

Retail sentiment on Stocktwits for NOW had improved to ‘bullish’ from ‘bearish’ in the past 24 hours, while message volume was ‘high’.

A bullish Stocktwits retail trader said the results beat their expectations and expects management’s earnings call to reinforce a positive long-term outlook. The trader added they plan to buy more shares this week.

Another bullish Stocktwits retail trader said the strong earnings should help dispel concerns that AI is hurting the software sector, adding they hope the stock resumes its upward climb.

NOW shares have declined nearly 38% year-to-date.

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