Filing Flows › ServiceNow (NOW) › Q2 2026
ServiceNow (NOW) Q2 2026 earnings results (second quarter 2026)
10-Q filed Jul 23, 2026
ServiceNow (NOW) reported revenue of $4.0B for the second quarter 2026 (Q2 2026), +24% from a year earlier and +6% from the quarter before. Operating margin was 4.1%, net earnings $298M (7.5% of revenue).
ServiceNow, Q2 2026: revenue $4.0B (+24% year over year), operating margin 4.1%, net earnings $298M, operating cash flow $587M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $4.0B | +6% | +24% |
| Gross profit | $2.8B | -0.4% | +13% |
| Operating profit | $162M | -68% | -55% |
| Net earnings | $298M | -36% | -23% |
| Operating cash flow | $587M | -65% | -18% |
| Free cash flow | $473M | -69% | -10% |
What changed
Revenue was $4.0B in Q2 2026, up 24% year over year and up 6% from the previous quarter. Subscription was the largest line at 97% of revenue. Subscription added $0.76B year over year (up 25%), 99% of the total change.
Gross margin was 70.7%, down 6.8 points from Q2 2025. Operating profit was $0.16B, a 4.1% margin (down 7.1 points year over year). Operating profit fell $0.20B even though revenue rose $0.77B versus Q2 2025, so costs grew faster than sales. Operating expenses grew 25% against revenue growth of 24%. The fastest-growing cost line was General & admin (+36%). Net earnings were $0.30B, down 23% year over year. The effective tax rate was 32.0%. Non-operating items added $0.28B, 63% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.59B (down 18% year over year), 197% of net earnings. Non-cash charges added back $0.41B of depreciation and amortization and $0.65B of share-based compensation. Working capital and other items used $0.77B. Capital expenditures of $0.11B left free cash flow of $0.47B.
Questions
What was ServiceNow's revenue in the second quarter 2026?
ServiceNow (NOW) reported revenue of $4.0B for the second quarter 2026 (Q2 2026), +24% from a year earlier and +6% from the quarter before.
Was ServiceNow profitable in the second quarter 2026?
Operating profit was $162M (4.1% of revenue) and net earnings $298M.
Source: ServiceNow 10-Q on SEC EDGAR.