Stock Track | ServiceNow Soars 6.01% in Pre-market on Strong Q2 Earnings Beat and Raised AI-Driven Guidance

Stock Track

Jul 23

ServiceNow's stock surged 6.01% in pre-market trading on Thursday, as investors reacted positively to the company's stronger-than-expected second-quarter financial results and raised full-year outlook.

The enterprise software platform reported quarterly revenue of $3.987 billion, beating analyst estimates, while adjusted earnings per share of $0.90 also exceeded expectations. The company attributed its performance to strong demand for its AI-powered software and agentic deployments, which drove significant topline growth.

Fueled by this momentum, ServiceNow raised its full-year 2026 subscription revenue guidance to a range of $15.76 billion to $15.78 billion. The company also reported robust contract values, with 123 transactions exceeding $1 million in net new annual contract value, representing a nearly 40% year-over-year increase. Additionally, ServiceNow's AI platform has seen widespread adoption across the public sector, with nearly all 50 U.S. states now using it to improve citizen services and modernize operations.

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The company attributed its performance to strong demand for its AI-powered software and agentic deployments, which drove significant topline growth.</p><p>Fueled by this momentum, ServiceNow raised its full-year 2026 subscription revenue guidance to a range of $15.76 billion to $15.78 billion. The company also reported robust contract values, with 123 transactions exceeding $1 million in net new annual contract value, representing a nearly 40% year-over-year increase. 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