ServiceNow Inc (NYSE:NOW) reported financial results for the second quarter after the market close on Wednesday. Here’s a look at the key details from the software solutions company's report.
Q2 Earnings: ServiceNow reported second-quarter revenue of approximately $3.22 billion, beating the consensus estimate of $3.12 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of $4.09 per share, beating analyst estimates of $3.57 per share.
Total revenue and Subscription revenue climbed 22.5% year-over-year. ServiceNow said it had remaining performance obligations of $23.9 billion at quarter's end, up 29% year-over-year. The company noted that customers with more than $20 million in annual contract value increased by more than 30% year-over-year.
“Our beat-and-raise quarter showcases the mission-critical nature of the ServiceNow AI Platform. Every business process in every industry is being refactored for agentic AI,” said Bill McDermott, chairman and CEO of ServiceNow.
ServiceNow said it repurchased approximately 381,000 shares of its common stock in the quarter for $361 million. The company had approximately $2.6 billion remaining on its buyback at the end of the period.
Guidance: ServiceNow expects third-quarter subscription revenue of $3.26 billion to $3.265 billion. The company also increased its full-year subscription revenue outlook to $12.775 billion to $12.795 billion, up from prior guidance of $12.64 billion to $12.68 billion.
ServiceNow’s management team will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
NOW Price Action: ServiceNow shares were up 6.54% in after-hours Wednesday, trading at $1,019 at the time of publication, according to Benzinga Pro.
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