F2Q Review: Results to Calm Fears Around Both Near-Term and Long-Term AI Disruptions as AI Control Tower Led Momentum Builds; Reiterate OW

研报英文原文证据摘录

F2Q Review: Results to Calm Fears Around Both Near-Term and Long-Term AI Disruptions as AI Control Tower Led Momentum Builds; Reiterate OW

Samik Chatterjee, CFA AC North America Equity Research

(1-212) 622-0798 23 July 2026 J P M O R G A N

samik.x.chatterjee@jpmorgan.com

• F2Q26 (Jun-end) Results: Earnings beat driven by stronger than expected

subscription revenues and cRPO growth combined with substantial operating

margin outperformance. Subscription revenues increased +24.5% y/y to $3.877 bn, or

+23.0% y/y in constant currency, vs. consensus of $3.814 bn, or +22.5% y/y and +21.9%

in constant currency, and guidance of $3.815-$3.820 bn. Subscription revenue exceeded

the high end of guidance by 150 bps, driven by net new ACV outperformance and a higher

than expected mix of on-premise revenues, primarily attributable to strong U.S. Federal

demand that accelerated some subscription revenues from F3Q into F2Q. We believe

roughly two-thirds of the subscription revenue beat was attributable to the on-premise

timing shift, while the remaining portion reflected stronger net new ACV. cRPO tracked

to $13.2 bn, increasing +20.9% y/y and +21.5% in constant currency, vs. consensus of

$12.991 bn, or +19% y/y and +19.5% in constant currency. RPO increased +22% in

constant currency to $29.0 bn, benefiting from an increase in average customer contract

duration. Meanwhile, PF operating income tracked to $1.173 bn, representing an

operating margin of 29.4% vs. consensus of $1.043 bn and 26.6%, and guidance of

26.5%. The nearly 300 bps of operating margin outperformance was primarily driven by

the timing of spending, largely within marketing. Notably, the operating-margin beat

masked a ~250 bps y/y decline in subscription gross margin to 80.5% driven by faster-