ServiceNow boosts AI-driven revenue forecast on robust demand

ServiceNow raised its 2026 subscription revenue forecast for the second time after beating quarterly estimates, citing stronger demand for its AI-powered software and an expanding AI agent portfolio that includes Otto and recent acquisitions of Armis and Moveworks. The company posted Q2 subscription revenue of $3.88 billion and adjusted EPS of $0.90, with Q3 guidance of about $3.975–$3.980 billion, and now expects 2026 subscription revenue of $15.76–$15.78 billion (up from prior guidance). Federal clients drove much of the quarterly strength, and remaining performance obligations rose to $13.2 billion. Shares moved higher in extended trading as investors weighed AI spending trends and software fundamentals.