ServiceNow shares rise on earnings beat and AI revenue outlook

ServiceNow reported second‑quarter 2026 earnings that beat expectations, with subscription revenue up about 23% year‑over‑year to $3.88 billion. The company raised its full‑year revenue guidance to $15.76 billion and highlighted more than $1 billion in AI‑related contract value, signaling growing demand for its AI‑driven workflow platform.

The earnings news lifted the stock, which jumped as much as 13.8% during the week and was up roughly 1.4% in midday trading, reaching around $111‑$112 per share. Analysts responded positively, raising price targets and noting strong user retention and pricing power in AI products. The company also disclosed a potential rightsizing effort that could cut up to 1,000 jobs.

Overall, the results and guidance have reinforced investor confidence in ServiceNow’s growth trajectory, especially in its AI services segment.