ServiceNow, Inc. (NOW) Earnings Call Transcripts

ServiceNow, Inc.'s Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, ServiceNow reported strong results, with subscription revenues reaching $3.988 billion, reflecting a 20.5% year-over-year growth, which exceeded the high end of guidance. The company raised its full-year AI revenue target from $1.5 billion to over $1.7 billion, driven by significant AI adoption and consumption. Management expressed confidence in the company's growth trajectory, despite some nuances in guidance for the fourth quarter, particularly regarding CRPO growth.

Reported metrics

Guidance from management

For Q4, ServiceNow expects subscription revenues between $4.245 billion and $4.255 billion, representing 21.5% year-over-year growth on a constant currency basis. The company raised its full-year subscription revenue guidance to $15.785 billion and free cash flow margin target to 36%.

What management said

And then Brad, from the impact on the financial model, as Bill said, our customers are very focused and quite happy with the hybrid model that we have today. and are not asking at all for outcome pricing. And so you would imagine if the day were to change, that we'd be ready and waiting for that. But as of now, our customers are very, very happy with the hybrid model, as Bill talked about.

And then I'll take you back to Financial Analyst Day, Adam, when we talked about by 2030, our AI business would be 30% of our ACV -- and so we're absolutely on path and trajectory to get there, if not actually ahead of schedule, as you can tell by our continued raise of AI, but we are well on our path.

What analysts pressed on

Analysts expressed concerns regarding the deceleration in CRPO growth for Q4, questioning how it might impact future revenue. There were also inquiries about the sustainability of AI adoption momentum and its effect on overall financial performance.

Main topics on the call

• Revenue Growth Acceleration — ServiceNow's subscription revenue grew 20.5% year-over-year, exceeding guidance by 50 basis points. Management stated, "Q3 results represent a trifecta moment for ServiceNow, quarterly results beating expectations across...
• AI Adoption and Monetization — AI-related net new ACV grew 65% year-over-year, prompting an increase in the AI revenue target to $1.7 billion. Management noted, "Year-to-date, agentic AI consumption in production is up 13x year-over-year."
• Operational Efficiency — The company achieved a non-GAAP operating margin of 32.5%, which was 150 basis points above guidance. This was attributed to revenue outperformance and efficiency gains, with management stating, "Our internal use of AI i...
• Guidance Changes — Management raised the full-year subscription revenue guidance by $15 million at the midpoint, now expecting $15.785 billion. They also increased the free cash flow margin target from 35% to 36%.

Read the full ServiceNow, Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 242 ServiceNow, Inc. earnings call transcripts on record, spanning January 29, 2020 to October 28, 2026. Based on this history, ServiceNow, Inc. reports quarterly. The most recent call on file is dated October 28, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

NOW

Exchange

NYSE

Country

US

Sector

Information Technology

Industry

Software

Calls on record

242

First call

January 29, 2020

Most recent

October 28, 2026

Reporting cadence

quarterly