TLDRServiceNow stock rebounded after Q2 earnings despite a lower regular session close.Subscription revenue jumped 24.5% as enterprise demand remained strong.Remaining performance obligations climbed to $13.2 billion year over year.AI platform expansion and new partnerships strengthened long-term growth plans.ServiceNow reaffirmed ambitious revenue and profitability targets through 2030.ServiceNow (NOW) shares closed at $95.46, down 6.47%, before rebounding to $99.03 in after-hours trading, up 3.74%, following the company’s second-quarter earnings release. The software company reported stronger subscription revenue growth and raised attention with expanding AI-related business momentum. Higher contract commitments and enterprise demand supported the positive after-hours recovery.ServiceNow, Inc., NOWSubscription Growth and Enterprise Demand Strengthen Quarterly PerformanceServiceNow generated $3.877 billion in subscription revenue during the second quarter ended June 30, 2026. The figure increased 24.5% from a year earlier and rose 23% on a constant currency basis. The company also exceeded its guidance across revenue and profitability measures during the quarter.Current remaining performance obligations reached $13.20 billion at quarter-end. The balance increased 21% year over year and advanced 21.5% in constant currency. Longer customer commitments supported the growth and improved future revenue visibility.ServiceNow completed 123 transactions exceeding $1 million in new annual contract value during the quarter. The total represented nearly 40% growth from the previous year. Additionally, customers generating more than $5 million in annual contract value increased to 658, marking approximately 23% annual growth.Product Expansion and Partnerships Extend AI Platform StrategyThe company expanded its enterprise platform with several new products during the quarter. ServiceNow introduced Otto, a unified AI experience that combines multiple AI services into one interface. The platform also expanded AI Control Tower with additional governance, security, observation and measurement capabilities.ServiceNow launched Autonomous Workforce AI specialists for information technology, customer management, employee services, and security operations. Furthermore, Build Agent became generally available across multiple development environments, including GitHub Copilot, Claude Code, Cursor, and Windsurf. Context Engine, Autonomous Data Analytics, and Action Fabric also entered the platform to improve enterprise workflow automation.Strategic partnerships continued to expand during the quarter. ServiceNow strengthened collaborations with NVIDIA, Microsoft, Amazon Web Services, and Accenture to extend enterprise AI deployment and governance. The company also expanded industry partnerships with Experian, TeamViewer, FedEx, Lenovo, and Leidos to integrate workflow automation across additional business sectors.Long-Term Targets and Industry Position Support Business OutlookServiceNow presented updated long-term objectives during its Financial Analyst Day in May. Management outlined plans to exceed $30 billion in subscription revenue while targeting AI to contribute 30% of annual contract value by 2030. The company also committed to reducing stock-based compensation below 10% of revenue by 2029.Enterprise adoption continued across both public and private organizations during the quarter. Nearly every U.S. state now uses the ServiceNow AI Platform for government operations and citizen services. Several organizations also expanded deployments to improve cybersecurity, workflow automation, and operational efficiency.Industry recognition also increased during the reporting period. ServiceNow earned leadership positions in multiple Gartner Magic Quadrant reports covering AI governance, workplace experience and SaaS management platforms. The company also retained its place on the Fortune 500 list for a fourth consecutive year while remaining among the Fortune 100 Best Companies to Work For. The post ServiceNow (NOW) Stock Rebounds After Q2 Earnings as Subscription Revenue Climbs 24.5% appeared first on Blockonomi.