Technology
Price
$106.32
+0.49%Market Cap
$109.65B
Day High
$107.68
Day Low
$103.84
ServiceNow delivered strong Q1 2026 revenue growth of 22.1% YoY to $3.77B, but margin compression and a massive $2.23B share buyback drove cash lower and kept net income growth to just 2.0%.
Key risk: Gross Margin Deterioration
Cost of Revenue grew 44.4% YoY versus revenue growth of 22.1%, compressing gross margin by ~385 bps to 75.1%. If cost pressures from cloud infrastructure, AI compute, or professional services continue to outpace revenue growth, profitability could be further impacted.
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