ServiceNow Reports Third Quarter 2026 Financial Results
Business Wire•28/10/2026•16:10 ET
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Key Highlights
- ➤Subscription revenue $3,988 million, up 21% year-over-year in Q3 2026
- ➤Full-year subscription revenue guidance $15,780-$15,790 million, representing 22.5% growth
- ➤AI annual contract value target raised to $1.7 billion, up 70%
- ➤Full-year free cash flow margin target raised 100 basis points to 36%
- ➤Remaining performance obligations reached $29.7 billion, up 22% year-over-year
Expert Statements
Bill McDermott, Chairman and CEO of ServiceNow
“This was more than another beat-and-raise quarter for ServiceNow, this was the inflection point for ServiceNow as the Super Intelligence Control Tower. 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 57(1) growth company firing on all cylinders.”
Gina Mastantuono, President and CFO of ServiceNow
“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. 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.”
* 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
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