ServiceNow Reports $4.11 Billion in Quarterly Revenue and Raises 2026 Subscription Outlook

ServiceNow reported third-quarter 2026 revenue of $4.106 billion on October 28, an increase of 20.5% from the corresponding quarter a year earlier, and raised its full-year subscription revenue forecast.

Subscription revenue, the company's largest source of sales, reached $3.988 billion, up 21% year over year. ServiceNow said current remaining performance obligations, a measure of contracted revenue expected to be recognized within the next 12 months, rose 20.5% to $13.65 billion. Total remaining performance obligations stood at $29.7 billion.

The results also showed pressure on reported profitability. Net income under generally accepted accounting principles was $277 million, down from $502 million a year earlier, while diluted GAAP earnings per share fell to $0.27 from $0.48. The company separately reported adjusted, non-GAAP earnings of $1.00 per share; these figures use different accounting definitions and should not be confused.

For full-year 2026, ServiceNow forecast subscription revenue of $15.78 billion to $15.79 billion and a non-GAAP free cash flow margin of 36%. The company also increased its annual contract value target for artificial intelligence products to $1.7 billion, compared with a target of $1 billion at the beginning of the year. Those are management targets, not completed results.

Independent earnings tracker Earnings Whispers reported that the adjusted earnings figure of $1.00 per share was below its cited consensus estimate of $1.02, even as revenue exceeded the $4.09 billion estimate. Differences between analysts' forecasts and the company's own guidance can affect market reactions, but forecasts are not guarantees.

The enterprise software provider is investing in artificial intelligence, workflow automation and security tools. Its earnings release also announced new partnerships, including an expanded arrangement with OpenAI. Those commercial announcements are separate from the quarter's financial performance. ServiceNow's quarterly figures are unaudited and subject to the standard reporting and reconciliation disclosures.