ServiceNow, an enterprise software company that provides workflow automation and AI platforms for businesses, reported second quarter 2026 results that exceeded its guidance and pushed its AI business beyond $1 billion in annual contract value for the first time.
Subscription revenue reached $3.877 billion for the quarter ended June 30, up 24.5% from a year earlier, or 23% in constant currency. Total revenue rose 24% year over year to $3.987 billion, while current remaining performance obligations climbed to $13.20 billion, reflecting 21% growth. Total remaining performance obligations reached $29.0 billion, also up 21% from the same period last year. Following the results, the company raised its full year subscription revenue outlook.
Customer demand remained strong across large enterprise accounts. ServiceNow closed 123 transactions worth more than $1 million in net new annual contract value during the quarter, an increase of nearly 40% year over year. The company finished the period with 658 customers generating more than $5 million in annual contract value, approximately 23% more than a year earlier.
“ServiceNow’s exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company,” said Bill McDermott, Chairman and CEO of ServiceNow. “The company’s sterling fundamentals have us operating to the Rule of 56, well on our way to the Rule of 60. With our AI Control Tower as the market standard, agentic deployments of ServiceNow AI increased ninefold in just nine months. Our $29 billion in remaining performance obligations is fueled by longer customer commitments and skyrocketing demand from our partner ecosystem. We are who we said we were: a defining company that is only just getting started.”
Artificial intelligence continued to drive growth across multiple product areas. ServiceNow said AI annual contract value exceeded $1 billion during the quarter, while its AI Control Tower contributed to demand for the company's Security and Risk portfolio. The company also reported continued momentum for its IT Operations Management business, citing demand for its configuration management database as a governance and data foundation for enterprise AI initiatives.
“Q2 was an outstanding quarter that highlights ServiceNow’s broad based demand, strong execution, and operating leverage,” said ServiceNow President and CFO Gina Mastantuono. “Once again, we beat the high end of our guidance range across every topline and profitability metric. AI net new ACV growth continues to outpace expectations, our AI Control Tower is supercharging our Security and Risk business, and ITOM is seeing strong demand tailwinds for the CMDB to serve as an essential governance and data foundation. In an environment where most enterprises are still searching for AI's ROI, ServiceNow is the platform delivering it.”
