- ServiceNow shares fell 26.9% on October 29, 2026, the session after fiscal Q3 2026 results, while the S&P 500 slipped 0.3%.
- Q3 revenue of $4.11 billion came in just below the $4.14 billion consensus, and EPS of $1.00 fell short of the $1.03 consensus.
- Current RPO reached $13.65 billion, up 21% at constant currency, but management expects growth to slow to 18.5% for fiscal Q4 2026.
- Management forecasts subscription revenue growth of 21.5% at constant currency for fiscal Q4 2026, above the 20.5% reported for Q3, but this speed-up is a forecast rather than a result.
- Management raised its fiscal 2026 subscription revenue forecast by $15 million at the midpoint, to $15.785 billion, with delivery work on large AI deals booked as professional services.
- Early renewals moved deals from Q4 into Q3, and strong public sector demand and contract provisions account for about 75 basis points of the slowdown in current RPO growth.
- ServiceNow reports fiscal Q4 2026 in January 2027, when current RPO growth against the 18.5% forecast is the figure to watch.
Quotes
“a backlog metric that management called a good indicator of future revenue”
“Strong public sector demand is raising the share of on-premises sales in Q4”