ServiceNow, Inc.

New York Stock Exchange
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Bullish +65

ServiceNow stock trades 28.15 percent below its 52-week high

Analyst upgrade Earnings report AI-generated analysis

📈 ServiceNow reported Q2 2026 total revenue of USD 3.987 billion, up 24% year over year.

📉 Operating income fell to USD 162 million from USD 358 million due to increased sales, R&D, and acquisition expenses.

💰 Subscription revenue reached USD 3.877 billion in Q2, growing 23% in constant currency.

🤖 ServiceNow AI annual contract value exceeded USD 1 billion in the second quarter of 2026.

🎯 Cantor Fitzgerald raised its price target to USD 174.00 and maintained an Overweight rating.

📊 Non-GAAP operating margin expanded to 29.5%, beating guidance by 300 basis points.

🔮 Management guided for full-year 2026 subscription revenue between USD 15.755 billion and USD 15.770 billion.

📉 The stock traded at USD 138.65, which is 28.15% below its 52-week high of USD 192.97.

🏛️ The consensus analyst rating is Moderate Buy with an average 12-month target of USD 146.51.

Bullish Signals
  • ServiceNow achieved a 24% year-over-year increase in total revenue, reaching USD 3.987 billion in Q2 2026.
  • Subscription revenue grew 23% in constant currency to USD 3.877 billion, demonstrating strong recurring demand.
  • Non-GAAP operating margins expanded to 29.5%, significantly exceeding analyst guidance by 300 basis points.
  • ServiceNow AI annual contract value surpassed USD 1 billion in the quarter, validating its AI strategy.
  • Cantor Fitzgerald raised its price target from USD 141.00 to USD 174.00 while maintaining an Overweight rating.
  • Management provided robust full-year 2026 guidance with 21% constant-currency subscription revenue growth.
Risk Factors
  • Operating income declined sharply to USD 162 million from USD 358 million in the prior year period.
  • The decline in operating income was driven by increased expenses in sales, research and development, and acquisitions.
  • The stock is trading 28.15% below its 52-week high of USD 192.97, indicating potential valuation pressure or market skepticism.
Full Analysis
ServiceNow Inc. reported strong Q2 2026 financial results, with total revenue reaching USD 3.987 billion, representing a 24% year-over-year increase compared to the prior year. However, operating income declined significantly to USD 162 million from USD 358 million in the same period previously, driven by increased expenses in sales, research and development, and acquisitions. Analyst sentiment remains bullish despite the stock trading well below its 52-week high. Cantor Fitzgerald raised its price target for ServiceNow from USD 141.00 to USD 174.00 on September 21, maintaining an Overweight rating. The broader analyst consensus is Moderate Buy, with an average 12-month price target of USD 146.51. Management provided full-year 2026 subscription revenue guidance between USD 15.755 billion and USD 15.770 billion, projecting 21% constant-currency growth. In the second quarter specifically, subscription revenue was USD 3.877 billion (up 23% in constant currency), and Non-GAAP operating margins expanded to 29.5%, exceeding guidance by 300 basis points. ServiceNow's AI strategy is showing traction with annual contract value for its AI offerings exceeding USD 1 billion in the quarter. Investors are closely watching whether this high revenue growth can be sustained alongside improved margin delivery, particularly as the stock trades at a discount to its yearly peak.