Q1 2026 ServiceNow Inc Earnings Call Transcript
Key Points
- ServiceNow Inc (NOW) reported strong first-quarter results, exceeding guidance metrics across the board, with subscription revenue growing 19% in constant currency.
- The company has a $28 billion RPO business growing at 23.5% year over year, indicating strong future revenue potential.
- ServiceNow Inc (NOW) is positioned as the AI Control Tower for business reinvention, with significant growth in AI-related products and services.
- The acquisition of Armis is expected to significantly expand ServiceNow Inc (NOW)'s total addressable market and accelerate subscription revenue growth.
- The company is seeing strong demand for its AI-native CRM and EmployeeWorks products, with substantial growth in deals over $1 million.
- ServiceNow Inc (NOW) faced a 75-basis-point headwind from delayed closings of several large on-premise deals in the Middle East due to ongoing conflict.
- There is a concern about the potential impact of geopolitical tensions, particularly in the Middle East, on future deal timings.
- Despite strong performance, the company's stock experienced a decline, indicating potential investor concerns or market volatility.
- The integration of recent acquisitions like Armis and Veza may present short-term margin headwinds as the company works to integrate these businesses.
- There is a competitive landscape in the AI and agentic orchestration space, which may pose challenges for ServiceNow Inc (NOW) to maintain its differentiation.
Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the first-quarter 2026 ServiceNow earnings conference call.
(Operator Instructions)
I would now like to turn the call over to Darren Yip, Vice President of Investor Relations and Market Insights. Darren, please go ahead.
Good afternoon, and thank you for joining ServiceNow's first-quarter 2026 earnings conference call. Joining me are Bill McDermott, our Chairman and Chief Executive Officer; Gina Mastantuono, our President and Chief Financial Officer; and Amit Zaveri, President, Chief Product Officer and Chief Operating Officer.
During today's call, we will review our first-quarter 2026 results and discuss our guidance for the second quarter and full-year 2026. Before we get started, we want to emphasize that the information discussed on this call, including our guidance is based on
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