Strong Top-Line Revenue Growth
Revenue grew 22.1% YoY to $3.77B in Q1 2026 from $3.09B in Q1 2025, reflecting continued enterprise demand for ServiceNow's platform and workflow automation solutions.
ServiceNow, Inc. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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%.
Drawn from management commentary in the Q1 2026 10-Q:
Revenue grew 22.1% YoY to $3.77B in Q1 2026 from $3.09B in Q1 2025, reflecting continued enterprise demand for ServiceNow's platform and workflow automation solutions.
Gross margin declined 385 basis points YoY to 75.1% from 78.9%, as Cost of Revenue surged 44.4% YoY to $940M — significantly outpacing revenue growth — indicating rising infrastructure, cloud delivery, or AI-related costs.
R&D expense increased 17.1% YoY to $823M, representing approximately 21.8% of revenue, signaling continued heavy investment in product innovation, likely including AI and platform capabilities.
Revenue
$3.77B
++22.09% YoY
EPS (Basic)
$0.45
++2.27% YoY
Gross Margin
75.1%
-3.85% YoY
Operating Income
$503M
++11.53% YoY
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