ServiceNow NYSE: NOW executives used the company’s Financial Analyst Day 2026 to argue that enterprise AI adoption is strengthening—not undermining—the company’s platform position, while outlining long-term targets for subscription growth, margins, and stock-based compensation.
Darren Yip, ServiceNow’s senior vice president and head of investor relations, opened the event by noting the company would provide forward-looking statement disclosures and GAAP-to-non-GAAP reconciliations on its investor relations website.
“AI Control Tower” and a push to be the “AI of the AIs”
Chairman and CEO Bill McDermott framed the company’s trajectory since 2019 as “promises made, promises kept,” saying ServiceNow is “blowing through 15 in 2026” and calling it “the fastest enterprise software company at scale to hit $15 billion” organically. He described ServiceNow as “the platform of platforms” and said it is now “the AI of the AIs,” positioning the company’s AI Control Tower as an “air traffic control tower” for enterprise software.
McDermott emphasized openness and partnerships, saying ServiceNow has deals with “OpenAI, Anthropic, Google, NVIDIA, Microsoft, Amazon,” and arguing the company is “welcoming everybody in” rather than protecting a moat. He also previewed a “total satisfaction guarantee on AI go lives in less than 100 days,” which he said would be announced on stage the following day.
McDermott cited customer examples including FedEx and Chipotle. He said FedEx is running “every key business process” on ServiceNow’s “agentic platform,” while Chipotle can change menus across “4,000 locations” in real time.
Product roadmap: agentic platform, data fabric, autonomous workers, and CRM
President, Chief Product Officer, and COO Amit Zavery said the last 12 months included material product expansion and commercialization progress. Among the points he highlighted:
- “EmployeeWorks launched just 2 months after the acquisition of Moveworks” and “beat Q1 expectations by 5x.”
- A data analytics product “exceeded $100 million in ACV in its first full year,” with data analytics “on track to be a billion-dollar business.”
- CRM expansion into omnichannel intake, sales order management, and CPQ, which he said would help CRM “cross $2 billion in ACV.”
- Security and risk “crossed $1 billion” and expanded into “AI identity governance and OT cybersecurity.”
- AI products “are nearing $1 billion ACV.”
Zavery argued enterprises require both “probabilistic AI” and “deterministic execution,” and said ServiceNow’s context (via CMDB and a “Context Engine”) addresses governance and safety gaps that he said can cause failures in standalone agent approaches. He cited Gartner’s projection that “40% of agentic AI projects will fail by 2027” due to insufficient governance.
EVP and GM of Platform and AI Jon Sigler said ServiceNow has “reimagined the platform from the bottom up” for the agentic era, emphasizing that AI experiences are “not bolted on.” Sigler introduced “Action Fabric,” describing it as a way to expose a “system of action” layer—workflows, processes, playbooks, and context—rather than just system-of-record APIs. Sigler said the company intends to monetize this access by plugging it into the Now Assist monetization model, adding that Now Assist is “a billion-dollar business” and “it’ll be a billion and a half dollars by the end of the year.”
In the IT domain, CTO and EVP of DevOps Pat Cassey described a shift from bespoke automation to “autonomous workers,” with a “path to zero touch” and roles such as “Level 1 service desk specialists” and “Junior IT operators.” He said ServiceNow had “6 live pilot customers” for autonomous IT specialists and “about 50 customers in the hopper,” adding demand was “oversubscription.”
On CRM, EVP and GM John Ball said ServiceNow’s CRM business was on a path to “blow through $2 billion,” and argued that core CRM outcomes require deterministic workflow, with AI improving interaction while workflow ensures reliable execution. He cited NVIDIA reducing “time to quote from 5 days to 5 minutes,” and showed a demo in which a voice agent handled a complex order change using CPQ and order management workflows.
Security and risk: Armis and Veza added “cyber asset” and “access” graphs
Senior VP John Aisien said ServiceNow’s security and risk business surpassed “$1 billion of CACV” at the end of Q3 and grew “organically 40% in 2025 versus 2024.” He attributed the growth to a combination of IT asset data “gravity,” broad enterprise persona reach, and an expanded core following acquisitions.
Aisien described Armis as a “cyber asset graph” adding visibility into areas such as “OT, IoT, medical devices” and code, and Veza as an “access graph” that provides insight into “who and what has access to what,” including for “human and non-human” identities. He positioned the company’s “AI Agent Fabric” as an architectural collaboration layer enabling “collective defense” and a move toward “zero privilege.”
Financial targets: $30B+ subscription revenue by 2030 and “rule of 60+”
President and CFO Gina Mastantuono addressed investor concerns about foundational models, seat compression, and whether software becomes “only margin stories,” calling those concerns an “emphatic no” for ServiceNow. She said ServiceNow is “the orchestration layer AI agents run on,” describing it as “the AI operating system for the enterprise.”
Mastantuono said that in 2025 the company grew “20% year-over-year to nearly $13 billion in subscription revenue,” with a five-year CAGR of “24%.” She said Now Assist ACV “crossed $600 million” in 2025 and rose to “$750 million” in Q1. She also noted that “91%” of net new ACV in 2025 came from deals with “5 or more products.”
On packaging and monetization, Mastantuono said half of net new ACV has shifted to non-seat-based pricing models, and that new AI-native bundles are expected to drive “an average price lift of 20%-30%.” She raised ServiceNow’s 2026 AI ACV target “from $1 billion to $1.5 billion,” and said the company expects “by 2030” that “30% of our ACV” will come from ServiceNow AI.
On profitability, Mastantuono said “AI is structurally expanding ServiceNow’s margins,” adding that “AI reasoning is less than 10% of our cost to serve” and that subscription gross margins can remain “above 80%.” She said the company expects “$200 million in savings in 2026” on top of “$100 million” in 2025, for “$300 million in expected annualized cost savings” from agentic AI. She also said ServiceNow expects to return to “normalized margin expansion in 2027,” targeting “100 basis points” of non-GAAP operating margin expansion and “100 basis points” of free cash flow margin expansion in 2027, “inclusive of Armis.”
For long-term targets, Mastantuono said ServiceNow is on track to beat its 2026 $15 billion subscription revenue target “by half a billion dollars organically,” and outlined a path to “$30 billion plus” by 2030. She also presented an “upside” view of “$32 billion of subscription revenue in 2030,” saying the company provided a range given market uncertainty. McDermott said the company’s 2030 outlook does not assume large-scale M&A, characterizing recent deals as strategic moves to expand TAM.
Mastantuono also highlighted shareholder returns and dilution management, saying ServiceNow doubled share repurchases in 2025, executed a “$2 billion ASR” in Q1, expects to be “dilution net neutral for 2026,” and had “$4.2 billion in authorization remaining.” She said ServiceNow reached its goal of stock-based compensation below 15% of revenue in 2025 and set a target for “sub 10%” in 2029.
About ServiceNow NYSE: NOW
ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.
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