Preview|NOW 2Q26: New Pricing Pull-Forward Tailwind Drives the Beat, AI Still Lukewarm

We surveyed 3 top ServiceNow channel experts this quarter. Feedback points to a broad-based sequential acceleration in 2Q26, driven by 1Q's delayed orders landing in 2Q, recovering US Federal demand, and customers renewing early ahead of the July 1 cutover to the new pricing system, which creates a pull-forward tailwind from 2Q through 4Q. That said, some channels report the budget squeeze from hardware price hikes keeps worsening. On AI, AICT has become the center of channel discussions, but actual adoption and monetization remain very early, with no visible acceleration in real Now Assist usage. Overall, a 2Q beat and a raised 2H guide look more likely, but real AI usage remains weak.

2Q26 Channel Performance Accelerating QoQ; 2H Outlook Optimistic

North America Channel Expert A

• 2Q26 growth: 21.6-21.8% yoy (1Q: 20.7-20.8%), accelerating QoQ; 1H completion sits in the upper half of the 20.6-21.5% target range.
• Drivers of acceleration: 1Q was slowed by macro cyclicality, with some deals pushed into 2Q; US Federal (civilian) demand has recovered, while defense has slowed slightly but remains better than a year ago, which the expert sees as sustainable; AI uplift contribution remains muted.
• Demand mix: within Enterprise SaaS, three lines are showing a clear uptick: ERP, supply chain management, and workflow management. NOW falls in the third, with SAP and Oracle benefiting as well. The reason: customers believe the macro will remain as-is and are willing to continue investing in IT for core functions.