The Quarter in Brief
ServiceNow reported its third quarter of 2026, the three months to September 30, after the market closed on October 28. Revenue was $4.11 billion, up 20.5% from a year earlier. Subscription revenue, 97% of the total, rose 21% to $3.99 billion, just above the top of the company's own July forecast. Reported earnings per share were $0.27, down from $0.48. Non-GAAP earnings per share, ServiceNow's own measure that leaves out stock-based pay, the amortization of acquired intangible assets, acquisition costs, severance and gains on investments, were $1.00, against $0.95 a year earlier.
Revenue was a little ahead of expectations and adjusted earnings a little behind: analysts had expected about $4.09 billion and $1.02 a share, according to the consensus Investing.com reported. What set the quarter apart was the gap between sales and reported profit. ServiceNow has spent about $12 billion buying companies since December 2025, chiefly the security firm Armis for about $7.6 billion in April. Amortization of the assets it acquired, along with severance from staff cuts, pushed income from operations down by a third, to $385 million, even as revenue grew by a fifth.