Reported October 28, 2026: Service Now Sees Q4 2026 Subscription Revenue Of $4.245B-$4.255B, Up 22.5%-23% YoY, 21.5% Constant Currency); cRPO Growth Of 18.5%; 32% Operating Margin; Sees FY26 Subscription Revenue Of $15.78B-$15.79B, Up 22.5% YoY, +21% Constant Currency); 81% Subscription Gross Margin, 31.5% Operating Margin, 36% Free Cash Flow Margin
Financial Outlook
Our guidance includes GAAP and non‑GAAP financial measures. The non‑GAAP growth rates for subscription revenues are adjusted for constant currency by excluding the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non-GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business.
The following table summarizes our guidance for the fourth quarter 2026:
Fourth Quarter 2026 GAAP Guidance |
Fourth Quarter 2026 Non-GAAP Guidance(1) |
||||
Amount ($ millions)(2) |
Year/Year Growth (%)(2) |
Constant Currency Year/Year Growth (%) |
|||
| Subscription revenues | $4,245 - $4,255 | 22.5% - 23% | 21.5% | ||
| cRPO | 18.5% | 18.5% | |||
| Margin (%)(3) | |||||
| Income from operations | 32% | ||||
Amount (billions) |
|||||
| Weighted-average shares used to compute diluted net income per share | 1.05 | ||||
| (1) | We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled "Statement Regarding Use of Non-GAAP Financial Measures" for an explanation of non-GAAP measures. | |
| (2) | Guidance for GAAP subscription revenues and GAAP subscription revenues and cRPO growth rates are based on the 30-day average of foreign exchange rates for September 2026 for entities reporting in currencies other than U.S. Dollars. | |
| (3) | Refer to the table entitled "Reconciliation of Non-GAAP Financial Guidance" for a reconciliation of GAAP to non-GAAP measures. |
The following table summarizes our guidance for the full-year 2026:
Full-Year 2026 GAAP Guidance |
Full-Year 2026 Non-GAAP Guidance(1) |
||||
Amount ($ millions)(2) |
Year/Year Growth (%)(2) |
Constant Currency Year/Year Growth (%) |
|||
| Subscription revenues | $15,780 - $15,790 | 22.5% | 21% | ||
| Margin (%)(3) | |||||
| Subscription gross profit | 81% | ||||
| Income from operations | 31.5% | ||||
| Free cash flow | 36% | ||||
Amount (billions) |
|||||
| Weighted-average shares used to compute diluted net income per share | 1.04 | ||||