ServiceNow delivered a strong first quarter, exceeding guidance across key metrics and raising its full-year outlook, driven by robust subscription revenue growth and AI-powered innovation. The company is strategically expanding its addressable market through key acquisitions and partnerships, positioning itself for continued accelerated growth.
Subscription revenues grew 22% year-over-year to $3,671 million, and 19% in constant currency, beating the high end of guidance.
positiveTotal revenues reached $3,770 million, also up 22% year-over-year (19% in constant currency).
positiveCurrent remaining performance obligations (cRPO) grew 22.5% year-over-year (21% in constant currency) to $12.64 billion.
positiveRemaining performance obligations (RPO) grew 25% year-over-year (23.5% in constant currency) to $27.7 billion.
positiveNow Assist customers spending over $1 million in annual contract value grew over 130% year-over-year.
positiveFree cash flow increased 44% year-over-year to $1,665 million.
positiveNon-GAAP operating margin improved to 32% from 31% in the prior year.
positiveGAAP operating margin decreased to 13.5% from 14.5% in the prior year, impacted by stock-based compensation, amortization of purchased intangibles, business combination costs, and severance costs.
attentionGAAP subscription gross margin decreased to 77.5% from 81.5% in the prior year, impacted by stock-based compensation and amortization of purchased intangibles.
attentionThe acquisition of Armis is expected to create headwinds of approximately 75 basis points to FY 2026 operating margin and 200 basis points to Q2 2026 operating margin.
attentionThe acquisition of Armis is expected to create headwinds of approximately 200 basis points to FY 2026 free cash flow margin.
attentionQ1 2026 subscription revenues growth saw an approximately 75 basis point headwind from delayed closings of several large on-premise deals in the Middle East due to the ongoing conflict in the region.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| subscription_revenue | 15.735 billion to 15.775 billion | FY2026 | tight_range | Lowered |
| operating_margin | 31.5% | FY2026 | point | Lowered |
| free_cash_flow_margin | 35% | FY2026 | point | Lowered |
| subscription_revenue | 3.815 billion to 3.820 billion | Q2 2026 | tight_range | New |
| operating_margin | 26.5% | Q2 2026 | point | New |
| AI_commit | 1.5 billion | FY2026 | point | New |
$2 billion · Q1
$4.2 billion · As of the end of the quarter
ServiceNow's first quarter performance beat the high end of our guidance once again.
Customers trust our platform because we integrate with any model, cloud, interface, data, and system they choose to deploy.
With this foundation, our AI growth is far exceeding even our own expectations, reinforcing our position as one of the fastest growing enterprise software companies ever.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.