ServiceNow Posts 21% Subscription Revenue Growth, Raises Full-Year Outlook

ServiceNow reported third-quarter 2026 financial results showing subscription revenues of $3,988 million, up 21% year-over-year, and said in a filing with the SEC that it beat the high end of guidance across all topline growth and profitability metrics.

Total revenues reached $4,106 million in the quarter, representing 20.5% year-over-year growth, or 20% in constant currency. Current remaining performance obligations stood at $13.65 billion as of September 30, 2026, up 20.5% year-over-year, while total remaining performance obligations reached $29.7 billion, up 22% year-over-year.

The company had 19 transactions over $5 million in net new annual contract value during the quarter, representing more than 135% year-over-year growth, and ended the period with 680 customers holding more than $5 million in ACV, up approximately 23% year-over-year.

ServiceNow raised its AI annual contract value target for 2026 to $1.7 billion, up 70% from the start of the year. CFO Gina Mastantuono said AI net new ACV exceeded expectations and that year-to-date consumption of agentic AI in production is up more than 13 times year-over-year. The company also raised its full-year free cash flow margin target by 100 basis points to 36 percent while reducing capital expenditures.

CEO Bill McDermott described the quarter as an inflection point for the company's positioning as what it calls the Super Intelligence Control Tower, pointing to the hybrid business model reaching $30 billion in remaining performance obligations, growing 23 percent.

The filing detailed several business developments during the quarter, including an expanded partnership with OpenAI featuring a new ServiceNow plugin for ChatGPT, a selection by HPE for customer support and field service transformation, and a deal with Stagwell to consolidate service desks across more than 70 agencies and 10,000 employees in over 40 countries. ServiceNow also announced the Control Tower Alliance, a new ecosystem including Anthropic, Amazon Web Services, Cisco, NVIDIA, Okta, OpenAI and Stripe among its founding members.

Finazon · prior-day close, indicative (IEX-derived, not the official close) · Oct 27, 2026