IT Services Sector: Implications from ServiceNow results

研报英文原文证据摘录

IT Services Sector: Implications from ServiceNow results

J P M O R G A N Asia Pacific Equity Research

23 July 2026

IT Services Sector

Implications from ServiceNow results

ServiceNow (covered by analyst Samik Chatterjee, CFA) announced 2Q FY2026 Japan Equity Research

results, which we believe improved sentiment for SaaS-related stocks. Its 2Q

IT Services and Telecoms

results were at the high end of guidance and top-line growth indicators exceeded

expectations. Total revenue beat consensus by $62.3 million (+1.6%), driven by Matthew Henderson AC

strong subscription demand and stronger momentum in on-premise sales to US (81-3) 6736-8831

matthew.henderson@jpmorgan.com

Federal customers, which accounted for about half of the overshoot. Subscription JPMorgan Securities Japan Co., Ltd.

revenue also exceeded the consensus estimate by $60.5 million, with a YoY growth

rate of +24.5% (JPMe +22.6%), outperforming by 190bp. Compared to guidance,

growth in current remaining performance obligations (cRPO) outperformed by

+200bp, with reported growth at +21% (guidance: +19%), or +21.5% (guidance

:+19.5%) on a constant currency basis. Total revenue grew +5.8% QoQ (JPMe

+4.1%) and subscription revenue rose +5.6% QoQ (JPMe +4.0%), both

accelerating. The revenue mix remained stable with a subscription ratio of 97.2%

(estimated). cRPO rebounded to +3.6% QoQ (1Q: -1.8% QoQ) and RPO recovered

to +4.7% QoQ (1Q: -1.8% QoQ), indicating resilient booking conditions. The

number of customers reached 658 companies (+4.4% QoQ, around +23% YoY).

In addition, ServiceNow AI surpassed $1 billion in annual contract value (ACV),

with adoption of AI features progressing among both existing and new customers.

The company raised its full-year FY2026 subscription revenue guidance to a range