Stock Track | ServiceNow Soars 5.04% in After-Hours Trading on Strong Q2 Earnings Beat and Raised AI-Driven Guidance

Stock Track

Jul 23

ServiceNow's stock surged 5.04% in after-hours trading on Wednesday, reversing a decline from the regular session. The sharp upward move followed the release of the company's second-quarter financial results, which significantly exceeded analyst expectations.

The enterprise software platform reported quarterly revenue of $3.987 billion, beating the consensus estimate. Adjusted earnings per share came in at $0.90, surpassing the $0.85 forecast. The company attributed its performance to strong demand for its AI-powered software, which contributed to topline growth. Driven by this momentum, ServiceNow raised its full-year 2026 subscription revenue guidance to a range of $15.760 billion to $15.780 billion.

ServiceNow's AI platform has seen widespread adoption, with nearly all 50 U.S. states now using it to improve citizen services and modernize operations. The company also reported a 21% year-over-year increase in current remaining performance obligations to $13.20 billion, indicating healthy future revenue visibility. CEO Bill McDermott cited "skyrocketing demand" from the partner ecosystem as a key driver behind the robust results and updated outlook.

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