ServiceNow reported strong third quarter 2026 results characterized by robust top-line growth and a significant expansion of its AI-driven contract pipeline. While non-GAAP EPS of $1.00 slightly missed expectations, total revenue and leading indicators like current remaining performance obligations (cRPO) exceeded analyst targets, supported by accelerating demand for its 'Now Assist' GenAI offerings.
Key Highlights
- Current Remaining Performance Obligations (cRPO) grew 21% year-over-year in constant currency to $13.65 billion, surpassing expectations.
- Management raised the full-year 2026 AI net new annual contract value (ACV) target to $1.7 billion, representing a 70% increase since the start of the year.
- Large deal momentum remained strong with 19 transactions over $5 million in net new ACV, reflecting 135% year-over-year growth.
- Full-year 2026 free cash flow margin guidance was raised by 100 basis points to 36% due to capital-efficient AI scaling.