Key Highlights

  • Consensus EPS of 1.02 compares with second-quarter diluted EPS of 0.29, against 0.37 a year earlier.
  • Consensus revenue of USD 4.09 billion compares with second-quarter revenues of USD 3,987 million, against USD 3,215 million.
  • Subscription revenues increased USD 764 million, while operating income was USD 162 million against USD 358 million.
  • Cost of revenue was USD 1,169 million against USD 724 million, and operating expenses were USD 2,656 million.

ServiceNow (NYSE:NOW) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.02 on revenue of USD 4.09 billion, and the company has a market capitalization of USD 163.56 billion.

ServiceNow sells cloud-based subscription offerings and professional services. Second-quarter revenues were USD 3,987 million against USD 3,215 million, and net income was USD 298 million against USD 385 million.

Estimates Against the Last Reported Quarter

The EPS estimate of 1.02 is above the second-quarter diluted EPS of 0.29, which compared with 0.37 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 4.09 billion is above the USD 3,987 million reported, which compared with USD 3,215 million.

Basic EPS was 0.29 against 0.37. Gross profit was USD 2,818 million against USD 2,491 million.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing states that subscription revenues increased USD 764 million for the three months and USD 1,430 million for six months, primarily driven by increased purchases by new and existing customers. It states that the professional services and other gross loss percentage was 26% against a gross profit percentage of 3%.

Cost of Revenue, Operating Expenses and Margin Lines

Cost of revenue was USD 1,169 million against USD 724 million, and operating expenses were USD 2,656 million against USD 2,133 million. Operating income was USD 162 million against USD 358 million.

Income before income taxes was USD 438 million against USD 471 million. For six months, depreciation and amortization was USD 665 million against USD 332 million, and stock-based compensation was USD 1,199 million against USD 969 million.

Armis Financing, Commercial Paper and Cash

The filing describes a Term Loan used for a portion of the cash consideration for the acquisition of Armis, which the company repaid in May 2026 primarily through the issuance of notes. A commercial paper program established in April 2026 allows up to USD 3.0 billion outstanding.

Cash and cash equivalents were USD 2,503 million against USD 3,726 million at year end, and marketable securities were USD 2,161 million against USD 2,558 million. Revenues were USD 3,987 million against USD 3,215 million, and net income was USD 298 million against USD 385 million. Gross profit was USD 2,818 million against USD 2,491 million. Basic EPS was 0.29. The estimates table lists a market capitalization of USD 163.56 billion.

Figures to Follow in the Release

Reported EPS against 1.02 and revenues against USD 4.09 billion are the headline comparisons. Other markers are subscription revenues, cost of revenue and the Armis financing.