Filing Flows › ServiceNow (NOW) › Q2 2026 › vs Q2 2025
ServiceNow (NOW) Q2 2026 vs Q2 2025 (year over year)
ServiceNow's revenue rose $772M (+24%) from $3.2B in Q2 2025 to $4.0B in Q2 2026. The biggest changes: Subscription +$764M (+25%); Professional services and other +$8.0M (+8%). Gross margin 70.7% against 77.5% (-6.8 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 Q2 2025, the increases inside each band.
Margins
| Q2 2026 | Q2 2025 | Change | |
|---|---|---|---|
| Gross margin | 70.7% | 77.5% | -6.8 pts |
| Operating margin | 4.1% | 11.1% | -7.1 pts |
| Net margin | 7.5% | 12.0% | -4.5 pts |
| Free cash flow margin | 11.9% | 16.4% | -4.5 pts |
Every line
| Line | Q2 2026 | Q2 2025 | Change | % |
|---|---|---|---|---|
| Subscription | $3.9B | $3.1B | $764M | +25% |
| Professional services and other | $110M | $102M | $8.0M | +8% |
| Revenue | $4.0B | $3.2B | $772M | +24% |
| Gross profit | $2.8B | $2.5B | $327M | +13% |
| Cost of revenue | $1.2B | $724M | $445M | +61% |
| Other income, net | $276M | $113M | $163M | +144% |
| Operating profit | $162M | $358M | −$196M | -55% |
| Operating expenses | $2.7B | $2.1B | $523M | +25% |
| Pre-tax earnings | $438M | $471M | −$33.0M | -7% |
| Research & development | $915M | $734M | $181M | +25% |
| Sales & marketing | $1.4B | $1.1B | $244M | +22% |
| General & admin | $369M | $271M | $98.0M | +36% |
| Net earnings | $298M | $385M | −$87.0M | -23% |
| Income tax | $140M | $86.0M | $54.0M | +63% |
| Operating cash sources | $1.4B | $1.1B | $301M | +29% |
| Depreciation & amortization | $407M | $172M | $235M | +137% |
| Share-based compensation | $652M | $499M | $153M | +31% |
| Working capital & other | $770M | $340M | $430M | +126% |
| Operating cash flow | $587M | $716M | −$129M | -18% |
| Free cash flow (OCF − capex) | $473M | $526M | −$53.0M | -10% |
| Capital expenditures | $114M | $190M | −$76.0M | -40% |
Questions
How much did ServiceNow's revenue grow year over year in Q2 2026?
ServiceNow's revenue rose $772M (+24%) from $3.2B in Q2 2025 to $4.0B in Q2 2026.
What drove ServiceNow's revenue change in Q2 2026?
Subscription +$764M (+25%); Professional services and other +$8.0M (+8%).