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ServiceNow — Third Quarter 2026 Earnings Summary

  • Q3 2026 subscription revenue reached $3,988 million (up 21% YoY), while total revenue hit $4,106 million (up 20.5% YoY); free cash flow grew 20% YoY to $822 million.
  • Management raised full-year 2026 guidance for subscription revenue to $15,780–$15,790 million and increased targets for free cash flow margin (36%), income from operations margin (31.5%), and subscription gross margin (81%).
  • Strategic AI momentum is accelerating with AI annual contract value (ACV) targets raised to $1.7 billion (up 70% from year-start), 19 transactions exceeding $5 million in net new ACV, and agentic AI consumption in production surging 13x YoY.
  • The company announced expanded partnerships with OpenAI and NVIDIA, launched "ServiceNow Arc" and "Autonomous Security," and introduced the "Control Tower Alliance" ecosystem to govern enterprise AI agents.
  • Remaining performance obligations (RPO) grew 22% YoY to $29.7 billion, with current RPO (cRPO) at $13.65 billion, reflecting strong demand for hybrid solutions and new industry integrations.
Company
SERVICENOW INC
Sector
Technology
Industry
Software - Application