NOW
Another quarter, another beat
ServiceNow opened 2026 by doing what investors have gotten used to: beating the high end of guidance. For Q1, subscription revenue hit $3.671 billion, up 22% from a year ago, or 19% in constant currency. That’s not just a nice headline — it’s the kind of growth that keeps the “premium software” valuation story alive.
Why investors are still watching
This is the part where the AI hype gets pulled off the slide deck and dragged into the real world. ServiceNow’s pitch is that it’s becoming the control tower for business workflows, and management is clearly trying to show that customers are still paying up for that vision. In other words: the AI story isn’t just vibes, it’s landing in recurring revenue.
The market cares about the texture, not just the number
For a stock like NOW, investors don’t just want growth — they want evidence that growth is durable, broadening, and not getting weird at the edges. A strong quarter suggests enterprises are still opening the wallet for automation and workflow software, even with budgets under the microscope.
Big picture
If you own the stock, this is the kind of update that keeps the bull case intact. If you don’t, it’s another reminder that the market still hands out the biggest rewards to companies that can make “AI transformation” sound less like a buzzword and more like a billable service.