Technology
Price
$141.26
-2.97%Market Cap
$150.54B
Day High
$145.26
Day Low
$138.80
ServiceNow's Q2 FY2026 revenue grew 24% year-over-year to $3.987B, but operating margin compressed sharply to 4.1% (from 11.1%) and net income fell 22.6% to $298M, driven primarily by higher amortization of acquired intangibles, elevated stock-based compensation, and a professional services gross loss.
Key risk: Margin Pressure from Acquisition-Related Amortization and Costs
Amortization of purchased intangibles rose from $25M to $219M quarter-over-quarter, and business combination-related costs, outside services, and severance costs are elevated, compressing gross and operating margins. Management expects subscription gross margin to continue declining through 2026 due to ongoing intangible amortization and cloud service cost growth.
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