ServiceNow, Inc.
Shortcut
1.01Normalized diluted EPS
-0.9% vs Street
Street
1.02Normalized diluted EPS
October 25 consensus snapshot
Real
1.00Issuer non-GAAP diluted EPS
Model download
Explore the assumptions and calculations behind the forecast.
Shortcut’s reasoning.
Revenue $4,118m: subscription $4,006m = opening cRPO $13.20bn x 30.35% conversion (~$29m above the $3,975-3,980m guide midpoint; beats vs midpoint averaged $39m over 4 qtrs, but ~half of the 2Q26 beat was a US Federal on-prem pull-forward out of 3Q) plus $112m professional services; FX neutral vs June-rate guidance basis.
Non-GAAP operating margin 32.75% vs 31% guide: average beat of +176bp over the last 4 quarters (exact margins; +188bp on company-rounded figures) and 3Q is seasonally the strongest margin quarter, tempered by marketing spend shifted from 2Q into H2 and a full quarter of Armis dilution.
Below the line is the swing factor: ~$82m/qtr interest on the $7.6bn Armis financing (10-Q effective rates) vs ~$65m interest income leaves non-operating at about -$16m, while consensus EBT-EBIT implies about +$77m (and consensus interest expense consensus is only $5m).
On the record.
- Reporting period
- Q3 FY2026 (FQ3 2026 - Sep 2026; quarter ended 2026-09-30)
- Reporting basis
- Normalized (issuer non-GAAP) diluted EPS
- Consensus snapshot
- October 25, 2026
- Model / effort
- Opus 5.5 · High effort
- Workbook
- Reviewed workbook
Record history
- Forecast generated
- Oct 26, 2026 at 12:17 AM PDT
- Reviewed revision completed
- Oct 26, 2026 at 12:17 AM PDT
- First published
- Oct 26, 2026 at 3:10 AM PDT
Result basis
ServiceNow reports Q3 non-GAAP diluted EPS $1.00 and GAAP diluted EPS $0.27 for September 30,2026. The issuer non-GAAP reconciliation shows $1,039m net income and explicitly presents basic/diluted EPS $1.00/$1.00. Its non-GAAP adjustments exclude stock compensation, acquired-intangible amortization, specified nonrecurring costs, strategic-investment gains/losses and tax effects. The original post 5-for -1 split diluted common-share convention is retained; no second split adjustment.