ServiceNow Reports Q1 Subscription Revenue Up 19% in Constant Currency
ServiceNow Inc. announced first-quarter results that exceeded company guidance, driven by AI deployments. Subscription revenue rose 19% in constant currency, and remaining performance obligations grew significantly. CEO Bill McDermott highlighted AI as a major tailwind for the company.
cliff1066 / Wikimedia (CC BY 2.0)ServiceNow Inc. (NYSE: NOW) reported first-quarter results that topped company guidance, with customers moving from AI experiments into broader deployments. ' He noted that ServiceNow sits inside a total addressable market of more than $600 billion.
Remaining performance obligations stood at $28 billion, up from prior periods. Subscription revenue rose 19% in constant currency during the first quarter. Current remaining performance obligations grew 21% in constant currency.
ServiceNow's operating margin reached 32%.
Key Facts
Story Timeline
5 events- 2026-04-25
ServiceNow reports first-quarter results topping guidance, with AI highlighted as a tailwind.
1 sourceBenzinga - 2026 Q1
Subscription revenue rises 19% in constant currency.
1 sourceBenzinga - 2026 Q1
Current remaining performance obligations grow 21% in constant currency.
1 sourceBenzinga - 2026 Q1
Operating margin reaches 32%.
1 sourceBenzinga - 2026 Q1
Customers move from AI experiments to broader deployments.
1 sourceBenzinga
Potential Impact
- 01
Broader AI deployments may lead to higher future revenue from expanded customer bases.
- 02
Growth in remaining performance obligations signals sustained revenue pipeline stability.
- 03
Increased investor confidence in ServiceNow's AI-driven growth could boost stock performance.
- 04
Expanded total addressable market could attract more enterprise clients in software sector.
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