ServiceNow Q1 Beat Overshadowed by Middle East Deal Delays Weighing Outlook

ServiceNow posted Q1 revenue of about $3.77 billion and adjusted EPS of $0.97, beating estimates as subscription revenue rose 22% and remaining performance obligations reached $27.7 billion. Now Assist growth surged 130% for customers with >$1 million in annual contract value, and the company repurchased ~20.1 million shares. For Q2, subscription revenue guidance is $3.815–$3.82 billion and full-year 2026 subscription revenue is $15.74–$15.78 billion, though management cited a roughly 75-basis-point headwind from delayed on-premise deals in the Middle East due to regional conflict. The company also announced a deeper Google Cloud partnership to accelerate AI-driven autonomous operations. After-hours, NOW fell about 14%.