ServiceNow Reports Third Quarter 2026 Financial Results

• ServiceNow beats high end of guidance across all Q3 2026 topline growth and profitability metrics, raises full year subscription revenues and free cash flow margin outlook
• Subscription revenues of $3,988 million in Q3 2026, representing 21% year-over-year growth, 20.5% in constant currency
• Total revenues of $4,106 million in Q3 2026, representing 20.5% year-over-year growth, 20% in constant currency
• Current remaining performance obligations of $13.65 billion as of Q3 2026, representing 20.5% year-over-year growth, 21% in constant currency
• Remaining performance obligations of $29.7 billion as of Q3 2026, representing 22% year-over-year growth, 22.5% in constant currency
• ServiceNow raises AI annual contract value target again for 2026 to $1.7 billion, up 70% from the beginning of the year

SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the Super Intelligence Control Tower for business reinvention, today announced financial results for its third quarter ended September 30, 2026, with subscription revenues of $3,988 million in Q3 2026, representing 21% year-over-year growth and 20.5% in constant currency.

“This was more than another beat-and-raise quarter for ServiceNow, this was the inflection point for ServiceNow as the Super Intelligence Control Tower,” said ServiceNow Chairman and CEO Bill McDermott. “Our customers have validated our strategic relevance as the single harness for enterprise intelligence and security. The Control Tower is the elixir that simplifies tech debt, limits token overload and manages unprecedented cybersecurity risk. That’s why AI adoption is accelerating, surging our hybrid business model to $30 billion in RPO, growing 23 percent. What other company at the forefront of the agentic enterprise has no capital or compute constraints? This is a one-of-one, rule of 57¹ growth company firing on all cylinders.”

As of September 30, 2026, current remaining performance obligations (“cRPO”), contract revenue that will be recognized as revenue in the next 12 months, was $13.65 billion, representing 20.5% year-over-year growth and 21% in constant currency. The company had 19 transactions over $5 million in net new annual contract value (“ACV”) in Q3 2026, representing over 135% year-over-year growth, and ended the quarter with 680 customers with more than $5 million in ACV, representing approximately 23% year-over-year growth.

"Our strong Q3 results reinforce how ServiceNow is perfectly positioned to help customers put AI to work across their business, govern every agent and action, and translate intelligence into secure, measurable outcomes,” said ServiceNow President and CFO Gina Mastantuono. “Our AI momentum continues to build, with AI net new ACV exceeding expectations and enabling us to raise our year-end target for the second time this year, from $1 billion at the start of the year to $1.7 billion now. Customers are also rapidly increasing their use of agentic AI, with year-to-date consumption in production up more than 13x year-over-year. Importantly, we are capturing this significant opportunity with a capital-efficient model, reducing capex and raising our full-year free cash flow margin target by 100 basis points to 36 percent."

Recent Business Highlights

Partner and Customer Momentum

• Today, ServiceNow announced an expanded partnership with OpenAI to help enterprises move seamlessly from AI reasoning to governed action. The partnership expansion starts with a new ServiceNow plugin for ChatGPT, enabled by Action Fabric. The companies aim to develop Security and Risk solutions powered by OpenAI cyber models, a Codex integration in AI Workflow Factory, and voice-driven governance and risk assessment for ServiceNow’s Super Intelligence Control Tower.
• Today, ServiceNow announced that HPE has selected ServiceNow to help transform customer support and field service for its Cloud & AI business, leveraging automation and AI to deliver faster, more efficient, data-driven customer experiences.
• Today, Stagwell, the global transformation company, chose the ServiceNow AI Platform to consolidate four service desks onto one governed platform across more than 70 agencies and 10,000 employees in over 40 countries. Each agency can maintain its independence, while integrating core operations across its global network.
• In October, ServiceNow and Google Cloud announced new industry solutions for telecommunications, retail, sales and IT, integrated through ServiceNow Action Fabric workflows and skills headlessly into Gemini Enterprise, enabling employees to initiate and complete governed actions without leaving the AI assistant they use daily.
• At NVIDIA GTC Berlin, ServiceNow announced the industry’s first personal enterprise agent and policy enforcement with NVIDIA, extending AI governance across software and silicon. ServiceNow Arc, a personal long-running AI agent that can take on everyday work, is now governed and secured by the ServiceNow Super Intelligence Control Tower and enforced with NVIDIA OpenShell, allowing it to work independently while the enterprise stays in control. Additionally, the NVIDIA OpenShell and NVIDIA BlueField data processing unit (DPU) enforcement layers will be able to read ServiceNow's recently announced AI Passport solution to validate what AI agents, including Arc, have permission to access or execute.
• In October, ServiceNow and Thrive, a managed services provider to small and mid-sized businesses, announced Thrive’s deployment of ServiceNow’s CRM solution Technology Provider Service Management and AI agents to scale customer experience. Thrive now resolves 73 percent of issues at first contact and has cut time-to-resolution by 63 percent, returning more than 14,500 estimated engineer hours to customer-facing work.
• INRY, a Cprime Company, announced that it deployed ServiceNow EmployeeWorks in just six weeks to replace its legacy portal with an AI front door, and is now rolling out the platform to clients as a leading implementation partner. INRY cut the median time it takes for employees to submit requests by 60 percent, now completing those requests with a 97 percent resolution rate.

Innovation

• Today, ServiceNow announced the Control Tower Alliance, a new ecosystem of leading companies in AI, cloud infrastructure, security, and governance, which will work with ServiceNow to help customers adopt trusted enterprise AI safely at scale. Founding members of the new program include Anthropic, Amazon Web Services (AWS), Cisco, HiddenLayer, Kong, NVIDIA, Okta, OpenAI, Stripe, WitnessAI, and Zenity.
• In October, ServiceNow announced a new AI Passport solution to verify first- and third-party AI agents’ scopes in real-time. New Super Intelligence Control Tower capabilities build on ServiceNow’s autonomous remediation and kill switch capabilities to drive end-to-end AI governance with discovery, visibility, control, measurement, and compliance on one unified platform.
• The company also announced advances to ServiceNow EmployeeWorks, giving employees the ability to build AI agents with no code required. ToolSmith, a new agentic developer environment, allows developers to quickly and securely vibe code enterprise AI tools.
• Additionally in October, ServiceNow launched Flow, a new AI-native service desk that operates outside the ServiceNow AI Platform, deploys instantly, and is built for any sized team or enterprise where speed and simplicity matter most. Teams can automate workflows in chat channels, providing a lightweight, conversational execution layer.
• ServiceNow also unveiled Autonomous Security, the industry’s most complete security offering, with a suite of six unified solutions to help enterprises prevent and remediate cyber risk. New AI Specialists complete security workflows autonomously, while capabilities from Armis and Veza feed directly into the Super Intelligence Control Tower.

Global Expansion

• In October, Bundesliga, Germany’s top professional soccer league, named ServiceNow its Official CRM Partner, adding to ServiceNow's role as Official Workflow Partner. In just a few weeks, ServiceNow CRM helped the league consolidate fan services from seven digital channels to one and now resolves 89 percent of fan inquiries at first contact, driving caseloads down more than 50 percent since the season began.
• ServiceNow and Aramco Digital established an agreement to standardize and govern digital workflows across Aramco's affiliates, subsidiaries, and joint ventures in more than 50 countries, helping Aramco Digital reduce fragmentation and modernize processes across its global network.
• ServiceNow opened its first dedicated office in Brazil, located in São Paulo, and deepened academic partnerships with SENAI-SP, Porto Digital, and Inteli to bolster regional AI talent.

Recognition

• ServiceNow was recognized as a Leader and Customer Favorite in the Forrester Wave™: Configure, Price, Quote Solutions, Q4 2026² and as a Leader in the Forrester Wave: Conversational AI Platforms for Employee Services, Q3 2026³.
• ServiceNow was also recognized as a Market Shaper in the 2026 Gartner® Emerging Market Quadrant for AI Agents in Human Resources - Established Vendors⁴ and as a Leader across multiple Gartner^® Magic Quadrant™ reports, including the 2026 Gartner Magic Quadrant for AI Applications in IT Service Management⁵, 2026 Gartner Magic Quadrant for Business Orchestration and Automation Technologies⁶, and 2026 Gartner Magic Quadrant for AI-Augmented Low-Code Application Platforms⁷.
• ServiceNow placed on the Fortune Best Workplaces in Technology^® list⁸ and was named to the Forbes World’s Best Employers list, reflecting a culture built on employee trust, respect, satisfaction, and fairness.

Third Quarter 2026 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the third quarter 2026:

Financial Outlook

Our guidance includes GAAP and non‑GAAP financial measures. The non‑GAAP growth rates for subscription revenues are adjusted for constant currency by excluding the effects of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts, and the non-GAAP growth rates for cRPO are adjusted only for constant currency to provide better visibility into the underlying business.

The following table summarizes our guidance for the fourth quarter 2026:

The following table summarizes our guidance for the full-year 2026:

Conference Call Details

The conference call will begin at 2 p.m. Pacific Daylight Time (21:00 GMT) on October 28, 2026. Interested parties may listen to the call by dialing (833) 461‑5787 (Meeting ID: 657715831), or if outside North America, by dialing (585) 542‑9983 (Meeting ID: 657715831). Individuals may access the live teleconference from this webcast.

https://events.q4inc.com/attendee/657715831

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days. To hear the replay, interested parties may go to the investor relations section of the ServiceNow website or dial (833) 309‑1852 (Meeting ID: 657715831), or if outside North America, by dialing (929) 828‑5978 (Meeting ID: 657715831).

Investor Presentation Details

An investor presentation providing additional information, including forward-looking guidance, and analysis can be found at https://investors.servicenow.com.

Upcoming Investor Conferences

ServiceNow today announced that it will attend and have executives present at four upcoming investor conferences.

These include:

• ServiceNow Senior Vice President and General Manager Josh Kahn will participate in a fireside chat at the BMO Technology and Innovation Leaders Conference on Thursday, November 12, 2026, at 7:00 a.m. PT.
• ServiceNow Senior Vice President and General Manager Josh Kahn will participate in a fireside chat at the RBC Global TIMT Conference on Tuesday, November 17, 2026, at 5:40 a.m. PT.
• ServiceNow President and Chief Financial Officer Gina Mastantuono will participate in a fireside chat at the Wells Fargo TMT Summit on Tuesday, December 8, 2026, at 12:45 p.m. PT.
• ServiceNow President and Chief Financial Officer Gina Mastantuono will participate in a keynote at the Barclays Global Technology Conference on Wednesday, December 9, 2026, at 11:40 a.m. PT.

The live webcast for each will be accessible on the investor relations section of the ServiceNow website at https://investors.servicenow.com and archived on the ServiceNow site for a period of 30 days.

Statement Regarding Use of Non-GAAP Financial Measures

We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

• Revenues. We adjust revenues and related growth rates for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations and any gains or losses from foreign currency hedge contracts that are reported in the current and comparative period. To exclude the effect of foreign currency rate fluctuations, current period results for entities reporting in currencies other than U.S. Dollars (“USD”) are converted into USD at the average exchange rates in effect during the comparison period (for Q3 2025, the average exchange rates in effect for our major currencies were 1 USD to 0.86 Euros and 1 USD to 0.74 British Pound Sterling (“GBP”)), rather than the actual average exchange rates in effect during the current period (for Q3 2026, the average exchange rates in effect for our major currencies were 1 USD to 0.87 Euros and 1 USD to 0.74 GBP). Guidance for revenues related growth rates is derived by applying the average exchange rates in effect during the comparison period, rather than the exchange rates for the guidance period, adjusted for any foreign currency hedging effects. We believe the presentation of revenues and related growth rates adjusted for constant currency facilitates the comparison of revenues year-over-year.
• Remaining performance obligations and current remaining performance obligations. We adjust cRPO and remaining performance obligations (“RPO”) and related growth rates for constant currency to provide a framework for assessing how our business performed. To present this information, current period results for entities reporting in currencies other than USD are converted into USD at the exchange rates in effect at the end of the comparison period (for Q3 2025, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.85 Euros and 1 USD to 0.74 GBP), rather than the actual end of the period exchange rates in effect during the current period (for Q3 2026, the end of the period exchange rates in effect for our major currencies were 1 USD to 0.88 Euros and 1 USD to 0.76 GBP). Guidance for the related growth rate is derived by applying the end of period exchange rates in effect during the comparison period rather than the exchange rates in effect during the guidance period. We believe the presentation of cRPO and RPO and related growth rates adjusted for constant currency facilitates the comparison of cRPO and RPO year-over-year, respectively.
• Gross profit, Income from operations, Net income and Net income per share - diluted. Our non-GAAP presentation of gross profit, income from operations, and net income measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of purchased intangibles, legal settlements, impairment of assets, severance costs, contract termination costs, business combination and other related costs including compensation expense, gains and losses on strategic investments, net, income tax effects and adjustments, and the income tax benefit from the release of a valuation allowance on deferred tax assets. We believe these adjustments provide useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
• Free cash flow. Free cash flow is defined as net cash provided by operating activities plus cash outflows for legal settlements and business combination and other related costs including compensation expense, reduced by purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenues. We believe information regarding free cash flow and free cash flow margin provides useful information to investors because it is an indicator of the strength and performance of our business operations.

Media Contact:
Emily Jeffers
press@servicenow.com

Investor Contact:
Darren Yip
(925) 388-7205
ir@servicenow.com