ServiceNow reported strong Q2 earnings, beating revenue and EPS estimates, driven by accelerated AI adoption with AI ACV surpassing $1 billion. The company raised its FY26 subscription revenue guidance, indicating robust growth and positive market sentiment.
ServiceNow announced a stellar Q2, exceeding analyst expectations for both EPS and revenue. The key highlight is the significant acceleration in AI adoption, with AI annual contract value (ACV) crossing the $1 billion mark and strong sequential growth in AI net new ACV. This performance led the company to raise its fiscal year 2026 subscription revenue guidance, signaling continued strong demand and execution. This is a major positive catalyst for NOW stock, reflecting successful product innovation and market penetration in the high-growth AI sector. For traders, this indicates strong upward momentum for NOW in the short term, with long-term opportunities driven by its AI strategy and strategic partnerships with companies like Experian and TeamViewer.