ServiceNow Beats Q2 Expectations, Raises Guidance; Stock Surges 7% in Premarket

According to Wall Street Journal and FactSet data, ServiceNow raised its full-year subscription revenue guidance and beat second-quarter earnings expectations on Thursday, with the stock surging 7% in premarket trading. The company reported Q2 revenue of $3.99 billion, up 24% year-over-year and above the $3.93 billion consensus estimate. Adjusted earnings per share came in at $0.90, exceeding the $0.86 forecast. ServiceNow now expects 2026 subscription revenue of $15.76 to $15.78 billion, up from its prior guidance of $15.735 to $15.775 billion.

CEO Bill McDermott told the Wall Street Journal that approximately 50% of the company's net new business is now driven by non-seat-based pricing models, signaling a strategic shift in its business approach. Meanwhile, retail sentiment for NOW shifted to 'extremely bullish' on Stocktwits, marking a sharp reversal from bearish positioning.