ServiceNow Stock Tumbles On Q1 Earnings, Company Flags Delayed Deals Due To Middle East Conflict
Benzinga • • business
Key Points:
- ServiceNow reported a 22% year-over-year increase in total revenue for Q1, with subscription revenue also rising 22%, and remaining performance obligations reaching $27.7 billion, up 25% year-over-year.
- The company highlighted significant growth in high-value customers, with Now Assist clients spending over $1 million annually increasing by 130% year-over-year.
- ServiceNow repurchased approximately 20.1 million shares during the quarter and has $4.2 billion remaining on its buyback authorization.
- The company projects Q2 subscription revenue growth of about 21% to 21.5%, with full-year 2026 subscription revenue expected between $15.74 billion and $15.78 billion, while noting geopolitical headwinds affecting deal timing.
- Despite strong financial results and a new AI-focused partnership with Google Cloud, ServiceNow shares fell 14.23% in after-hours trading following the earnings release.
