ServiceNow

Q2 FY2026 EarningsQ2 FY26 results slightly beat revenue consensus ($3,987M vs. $3,927M) but missed significantly on bottom-line GAAP metrics, with GAAP EPS of $0.29 falling below the $0.319 mean estimate. The variance was primarily driven by massive M&A activity, including the $7.6B acquisition of Armis and $1.2B for Veza, which spiked amortization and integration costs. While subscription revenue remains robust (up 25% YoY), gross margin contracted to 71% vs. 79.3% consensus due to these inorganic factors. Free Cash Flow for the first half remained healthy at $2,299M, supporting continued heavy share repurchases.