ServiceNow Revenue Climbs 22% to $3.77B in Q1 FY2026
ServiceNow, Inc. (NYSE: NOW), a cloud-based enterprise software company, reported total revenue of $3.77 billion for the three months ending March 31, 2026, up 22% from $3.09 billion in the same period a year earlier. Net income rose 2% to $469 million.
ServiceNow, Inc. (NYSE: NOW), a cloud-based enterprise software company, reported total revenue of $3.77 billion for the three months ending March 31, 2026, up 22% from $3.09 billion in the same period a year earlier. Net income rose 2% to $469 million from $460 million in the first quarter of fiscal 2025. Read more earnings reports.
Subscription revenue, the company's primary revenue stream, climbed 22% to $3.67 billion from $3.01 billion. Professional services and other revenue increased 19% to $99 million from $83 million in the year-ago quarter.
Operating income for the quarter reached $503 million, up 12% from $451 million a year earlier. Gross profit expanded to $2.83 billion from $2.44 billion, an increase of 16%.
Cost of revenue rose to $940 million from $651 million in the prior-year period, while operating expenses climbed to $2.33 billion from $1.99 billion. Research and development spending increased to $823 million from $703 million.
The company's tax expense more than doubled to $204 million from $95 million in the first quarter of fiscal 2025. Diluted earnings per share held steady at $0.45, matching the year-ago quarter, on a diluted share count of 1.04 billion shares.
Cash from operations totaled $1.67 billion for the quarter, nearly flat compared to $1.68 billion a year earlier. Cash used in investing activities increased to $451 million from $217 million, while cash used in financing activities surged to $2.24 billion from $398 million.
The company's balance sheet showed total assets of $24.38 billion as of March 31, 2026, down from $26.04 billion at the end of December 2025. Cash and cash equivalents declined to $2.70 billion from $3.73 billion at year-end.
Goodwill rose to $4.54 billion from $3.58 billion at the end of the prior quarter, reflecting recent acquisition activity. Intangible assets increased to $1.48 billion from $1.12 billion over the same period.
Total stockholders' equity decreased to $11.73 billion from $12.96 billion at December 31, 2025. Retained earnings grew to $5.71 billion from $5.24 billion. Common shares outstanding fell to 1.03 billion from 1.05 billion at year-end.
Financial Summary
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Total Revenue | $3.77 billion | $3.09 billion | +22% |
| Subscription Revenue | $3.67 billion | $3.01 billion | +22% |
| Net Income | $469 million | $460 million | +2% |
| Operating Income | $503 million | $451 million | +12% |
| Gross Profit | $2.83 billion | $2.44 billion | +16% |
| Diluted EPS | $0.45 | $0.44 | +2% |
| Cash from Operations | $1.67 billion | $1.68 billion | -0.4% |