ServiceNow stock raises AI target as enterprise demand accelerates
Published on 11/04/2026 at 16:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAI Demand Raises the Stakes
- ServiceNow lifted its 2026 AI annual contract value target to 1.7 billion US dollars.
- Third-quarter subscription revenue rose 21 percent to 3.988 billion US dollars.
- The company raised its full-year free-cash-flow margin outlook to 36 percent.
- New partnerships expand ServiceNow's role in governed enterprise AI.
ServiceNow raised its 2026 AI annual contract value target to 1.7 billion US dollars after third-quarter subscription revenue climbed 21 percent year over year. The company also increased its full-year free-cash-flow margin outlook to 36 percent, while new partnerships broadened its enterprise AI strategy.
In its October 28 earnings release, ServiceNow said subscription revenue reached 3.988 billion US dollars in the quarter ended September 30, 2026. Total revenue was 4.106 billion US dollars, while current remaining performance obligations increased 20.5 percent year over year to 13.65 billion US dollars.
Enterprise AI Moves Into Deployment
Management said AI net new annual contract value exceeded expectations and lifted the year-end target for the second time in 2026, from 1 billion US dollars at the start of the year. Production consumption of agentic AI rose more than 13 times year over year, according to the company.
ServiceNow also highlighted an expanded partnership with OpenAI, including a new ServiceNow plugin for ChatGPT enabled by Action Fabric. The companies plan work on security and risk solutions, a Codex integration and voice-driven governance. A new Control Tower Alliance brings together companies including Anthropic, AWS, NVIDIA, OpenAI and Stripe around governed enterprise AI adoption.
Margin Outlook Supports Execution
The full-year subscription revenue outlook now stands at 15.780 billion to 15.790 billion US dollars, with constant-currency growth of 21 percent. ServiceNow kept its full-year non-GAAP operating margin outlook at 31.5 percent, while fourth-quarter current remaining performance obligation growth is expected at 18.5 percent.
ServiceNow stock traded at 99.86 euros on Lang & Schwarz at 16:38 CET on Wednesday, November 4, 2026, 3.91 percent above the 96.10-euro quote in the previous report. The real-time quote of ServiceNow stock provides the latest market view.
ServiceNow stock at a glance
- Company: ServiceNow, Inc.
- ISIN: US81762P1021
- Home ticker: NYSE: NOW
- Lang & Schwarz quote: 99.86 euros on November 4, 2026, at 16:38 CET
- Change since previous report: 3.91 percent versus 96.10 euros on November 3, 2026
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