ServiceNow lifts 2026 AI contract value target to $1.7 billion and raises free‑cash‑flow margin outlook
ServiceNow reported third‑quarter 2026 revenue of $4.106 billion, a 20.5% year‑over‑year increase, and subscription revenue of $3.988 billion, up 21% YoY. The company raised its AI annual contract value (ACV) target for 2026 to $1.7 billion, 70% higher than at the start of the year, and lifted its free‑cash‑flow margin goal for 2026 to 36%. Chairman and CEO Bill McDermott said the results mark an inflection point for ServiceNow’s AI‑driven “Super Intelligence Control Tower.”
Why it matters
The higher AI ACV target signals stronger demand for ServiceNow’s AI platform, which could boost future subscription growth and profitability. The raised free‑cash‑flow margin outlook suggests the company expects higher cash generation, potentially supporting share buybacks or strategic investments.
Key facts
- 1Q3 2026 total revenue was $4,106 million, a 20.5% YoY increase and 20% in constant currency. stocktitan.net
- 2Q3 2026 subscription revenue was $3,988 million, up 21% YoY and 20.5% in constant currency. stocktitan.net
- 3ServiceNow raised its 2026 AI ACV target to $1.7 billion, 70% higher than at the beginning of the year. stocktitan.net
- 4The company increased its 2026 free‑cash‑flow margin goal to 36%. seekingalpha.com
- 5Current remaining performance obligations (cRPO) as of Q3 2026 were $13.65 billion, a 20.5% YoY increase and 21% in constant currency. stocktitan.net
- 6Total remaining performance obligations (RPO) as of Q3 2026 were $29.7 billion, a 22% YoY increase and 22.5% in constant currency. stocktitan.net
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.