ServiceNow 2Q Sales Rise on Higher Contract Values
By Katherine Hamilton
ServiceNow posted higher revenue in the second quarter and narrowed its outlook range.
The workflow manager on Wednesday posted a profit of $298 million, or 29 cents a share, in the quarter ended June 30, compared with $385 million, or 37 cents a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were 90 cents, ahead of the 86 cents anticipated by analysts, according to FactSet.
Revenue rose 24% to $3.99 billion, boosted by a similar growth rate for subscription revenue. Analysts surveyed by FactSet forecast revenue of $3.93 billion.
The company said sales were boosted by strong demand from the U.S. federal government, which accelerated some on-premise subscription revenues.
Annual contract value also outperformed in the second quarter, with 123 transactions with contract values of more than $1 million. That marked a nearly 40% increase year over year and prompted ServiceNow to raise the bottom end of its subscription sales outlook range.
ServiceNow expects full-year subscription sales to be $15.76 billion to $15.78 billion, compared with a prior range of $15.74 billion and $15.78 billion. Analysts are projecting $15.75 billion in annual sales.
For the third quarter, the company guided for subscription revenue of $3.98 billion to $3.98 billion, below the $4.01 billion that Wall Street is estimating.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
July 22, 2026 16:25 ET (20:25 GMT)
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