Aug. 19 at 1:35 AM
$NOW
Intrinsic value
$210
ServiceNow’s underlying numbers are exceptionally strong. Q2 subscription revenue grew 24.5%, total revenue grew 24%, cRPO reached
$13.2 billion and grew 21%, and total RPO reached
$29 billion and grew 21%. Importantly, ServiceNow also disclosed that its AI business crossed
$1 billion in annual contract value.
Management raised 2026 subscription-revenue guidance to
$15.76–
$15.78 billion and expects an unusually strong 35% free-cash-flow margin. The company is also targeting a Rule of 60+ combination of growth and FCF margin longer term.