Filing Flows › ServiceNow (NOW) › Q2 2026 › vs Q1 2026
ServiceNow (NOW) Q2 2026 vs Q1 2026 (quarter over quarter)
ServiceNow's revenue rose $217M (+6%) from $3.8B in Q1 2026 to $4.0B in Q2 2026. The biggest changes: Subscription +$206M (+6%); Professional services and other +$11.0M (+11%). Gross margin 70.7% against 75.1% (-4.4 pts).
ServiceNow, Q2 2026: revenue $4.0B (+24% year over year), operating margin 4.1%, net earnings $298M, operating cash flow $587M. The chart draws each line against Q1 2026, the increases inside each band.
Margins
| Q2 2026 | Q1 2026 | Change | |
|---|---|---|---|
| Gross margin | 70.7% | 75.1% | -4.4 pts |
| Operating margin | 4.1% | 13.3% | -9.3 pts |
| Net margin | 7.5% | 12.4% | -5.0 pts |
| Free cash flow margin | 11.9% | 40.6% | -28.7 pts |
Every line
| Line | Q2 2026 | Q1 2026 | Change | % |
|---|---|---|---|---|
| Subscription | $3.9B | $3.7B | $206M | +6% |
| Professional services and other | $110M | $99.0M | $11.0M | +11% |
| Revenue | $4.0B | $3.8B | $217M | +6% |
| Gross profit | $2.8B | $2.8B | −$12.0M | -0.4% |
| Cost of revenue | $1.2B | $940M | $229M | +24% |
| Other income, net | $276M | $170M | $106M | +62% |
| Operating profit | $162M | $503M | −$341M | -68% |
| Operating expenses | $2.7B | $2.3B | $329M | +14% |
| Pre-tax earnings | $438M | $673M | −$235M | -35% |
| Research & development | $915M | $823M | $92.0M | +11% |
| Sales & marketing | $1.4B | $1.2B | $156M | +13% |
| General & admin | $369M | $288M | $81.0M | +28% |
| Net earnings | $298M | $469M | −$171M | -36% |
| Income tax | $140M | $204M | −$64.0M | -31% |
| Operating cash sources | $1.4B | $1.3B | $83.0M | +7% |
| Depreciation & amortization | $407M | $258M | $149M | +58% |
| Share-based compensation | $652M | $547M | $105M | +19% |
| Working capital & other | $770M | −$396M | $1.2B | — |
| Operating cash flow | $587M | $1.7B | −$1.1B | -65% |
| Free cash flow (OCF − capex) | $473M | $1.5B | −$1.1B | -69% |
| Capital expenditures | $114M | $141M | −$27.0M | -19% |
Questions
How much did ServiceNow's revenue grow quarter over quarter in Q2 2026?
ServiceNow's revenue rose $217M (+6%) from $3.8B in Q1 2026 to $4.0B in Q2 2026.
What drove ServiceNow's revenue change in Q2 2026?
Subscription +$206M (+6%); Professional services and other +$11.0M (+11%).