NOW earnings

Analysis, not advice

This is a Technology sector Fast Grower generating ~$14B in trailing revenue with a 22% three-year revenue CAGR and operating margins around 13.4%, recently upgraded from Neutral to Buy by an analyst. The setup pits a premium valuation (~91x trailing earnings) against an accelerating growth and margin expansion story.

Next print

2026-07-22

cons 0.86 EPS / 3.93B rev

What the desk is testing

Explicit conditions that would change the desk's view — graded after the call.

Bull condition triggered: Management provides an explicit Now Assist ARR or attach metric that puts the platform on a credible path to $500M ARR by FY28 AND subscription revenue prints ≥22% YoY AND GA

Bear condition triggered: Subscription revenue growth decelerates below 19% YoY with management citing structural deal-cycle elongation (not one-time geography timing) — this would be the first confir

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From the desk's pre-read

ServiceNow (NOW) is scheduled to print Q2 2026 earnings on 2026-07-22; FMP consensus shows EPS $0.86 · Revenue $3.93B — note the EPS figure appears unusually low relative to recent trend and may reflect a non-GAAP vs. GAAP mismatch in the FMP feed; treat with caution and cross-check the print against non-GAAP EPS guidance.

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Bull case

A sustained 20%+ revenue CAGR with gradually expanding operating margins could justify the premium multiple if the company continues to scale its earnings base.

Bear case

At ~91x trailing earnings, there is little room for error — any deceleration in growth or margin pressure could compress the multiple significantly.

Educational analysis, not a personalised recommendation. See all covered names on the earnings calendar · part of our public track record.