ServiceNow Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?

ServiceNow (NOW) is scheduled to report Q2 2026 results on July 22, with consensus expecting revenues of $3.92 billion (+22% YoY) and EPS of 86 cents (+4.88% YoY). AI-driven growth from Now Assist, EmployeeWorks, AI-native CRM and acquisitions (Moveworks, Armis, Veza) is expected to fuel revenue, and the company has beaten consensus estimates in all four trailing quarters with an average surprise of 9.47%.

Why it matters: Despite strong AI tailwinds, NOW shares have fallen 32.5% YTD, face margin pressure from rising operating expenses and intense competition from Microsoft, Salesforce and Oracle, and carry a Zacks Rank #4 (Sell) with a stretched D value score and 22.60x forward P/E.