Filing Flows › ServiceNow (NOW) › Q3 2026 › vs Q2 2026
ServiceNow (NOW) Q3 2026 vs Q2 2026 (quarter over quarter)
ServiceNow's revenue rose $119M (+3%) from $4.0B in Q2 2026 to $4.1B in Q3 2026. The biggest changes: Subscription +$111M (+3%); Professional services and other +$8.0M (+7%). Gross margin 70.5% against 70.7% (-0.2 pts).
ServiceNow, Q3 2026: revenue $4.1B (+20% year over year), operating margin 9.4%, net earnings $277M, operating cash flow $839M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 70.5% | 70.7% | -0.2 pts |
| Operating margin | 9.4% | 4.1% | +5.3 pts |
| Net margin | 6.7% | 7.5% | -0.7 pts |
| Free cash flow margin | 18.2% | 11.9% | +6.4 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Subscription | $4.0B | $3.9B | $111M | +3% |
| Professional services and other | $118M | $110M | $8.0M | +7% |
| Revenue | $4.1B | $4.0B | $119M | +3% |
| Gross profit | $2.9B | $2.8B | $77.0M | +3% |
| Cost of revenue | $1.2B | $1.2B | $42.0M | +4% |
| Operating profit | $385M | $162M | $223M | +138% |
| Operating expenses | $2.5B | $2.7B | −$146M | -5% |
| Pre-tax earnings | $370M | $438M | −$68.0M | -16% |
| Other expense, net | $15.0M | −$276M | $291M | — |
| Research & development | $956M | $915M | $41.0M | +4% |
| Sales & marketing | $1.3B | $1.4B | −$101M | -7% |
| General & admin | $283M | $369M | −$86.0M | -23% |
| Net earnings | $277M | $298M | −$21.0M | -7% |
| Income tax | $93.0M | $140M | −$47.0M | -34% |
| Operating cash sources | $1.3B | $1.4B | −$60.0M | -4% |
| Depreciation & amortization | $390M | $407M | −$17.0M | -4% |
| Share-based compensation | $630M | $652M | −$22.0M | -3% |
| Working capital & other | $458M | $770M | −$312M | -41% |
| Operating cash flow | $839M | $587M | $252M | +43% |
| Free cash flow (OCF − capex) | $748M | $473M | $275M | +58% |
| Capital expenditures | $91.0M | $114M | −$23.0M | -20% |
Questions
How much did ServiceNow's revenue grow quarter over quarter in Q3 2026?
ServiceNow's revenue rose $119M (+3%) from $4.0B in Q2 2026 to $4.1B in Q3 2026.
What drove ServiceNow's revenue change in Q3 2026?
Subscription +$111M (+3%); Professional services and other +$8.0M (+7%).