Filing Flows › ServiceNow (NOW) › Q1 2026
ServiceNow (NOW) Q1 2026 earnings results (first quarter 2026)
10-Q filed Apr 23, 2026
ServiceNow (NOW) reported revenue of $3.8B for the first quarter 2026 (Q1 2026), +22% from a year earlier and +6% from the quarter before. Operating margin was 13.3%, net earnings $469M (12.4% of revenue).
ServiceNow, Q1 2026: revenue $3.8B (+22% year over year), operating margin 13.3%, net earnings $469M, operating cash flow $1.7B. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $3.8B | +6% | +22% |
| Gross profit | $2.8B | +4% | +16% |
| Operating profit | $503M | +14% | +12% |
| Net earnings | $469M | +17% | +2% |
| Operating cash flow | $1.7B | -25% | -0.4% |
| Free cash flow | $1.5B | -24% | +4% |
What changed
Revenue was $3.8B in Q1 2026, up 22% year over year and up 6% from the previous quarter. Subscription was the largest line at 97% of revenue. Subscription added $0.67B year over year (up 22%), 98% of the total change.
Gross margin was 75.1%, down 3.9 points from Q1 2025. Operating profit was $0.50B, a 13.3% margin (down 1.3 points year over year). Of the extra revenue versus Q1 2025, 8% reached operating profit, below the 15% margin then. Operating expenses grew 17% against revenue growth of 22%. The fastest-growing cost line was General & admin (+26%). Net earnings were $0.47B, up 2% year over year. The effective tax rate was 30.3%. Non-operating items added $0.17B, 25% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $1.7B (roughly flat year over year), 356% of net earnings. Non-cash charges added back $0.26B of depreciation and amortization and $0.55B of share-based compensation. Working capital and other items added $0.40B. Capital expenditures of $0.14B left free cash flow of $1.5B.
Questions
What was ServiceNow's revenue in the first quarter 2026?
ServiceNow (NOW) reported revenue of $3.8B for the first quarter 2026 (Q1 2026), +22% from a year earlier and +6% from the quarter before.
Was ServiceNow profitable in the first quarter 2026?
Operating profit was $503M (13.3% of revenue) and net earnings $469M.
Source: ServiceNow 10-Q on SEC EDGAR.