ServiceNow Reports Q3 2026 Results: Beats Across Topline and Profitability, Raises FY Guidance

Executive Summary

On October 28, 2026, ServiceNow, Inc. (NYSE: NOW) filed a Form 8-K under Item 2.02 reporting its financial results for the third quarter ended September 30, 2026. The company exceeded the high end of its guidance across all top-line growth and profitability metrics and raised its full-year 2026 outlook for subscription revenue and free cash flow margin.

Key Financial Highlights

• Subscription Revenue: $3,988 million, up 21.0% year-over-year (20.5% in constant currency).
• Total Revenue: $4,106 million, up 20.5% year-over-year (20.0% in constant currency).
• Current Remaining Performance Obligations (cRPO): $13.65 billion as of September 30, 2026, representing 20.5% year-over-year growth (21.0% constant currency).
• Remaining Performance Obligations (RPO): $29.7 billion, up 22.0% year-over-year (22.5% constant currency).
• Operating Income:
  • GAAP income from operations was $385 million (9.5% margin).
  • Non-GAAP income from operations was $1,338 million (32.5% margin).
• Cash Flow:
  • Operating cash flow was $839 million (20.5% margin).
  • Free cash flow was $822 million (20.0% margin).
  • Raised full-year free cash flow margin guidance by 100 basis points to 36.0%.

AI & Commercial Traction

• AI ACV Expansion: Raised full-year 2026 AI Net New Annual Contract Value (ACV) target to $1.7 billion (up from $1.0 billion at the start of the year).
• Large Enterprise Customers: Ended Q3 2026 with 680 customers generating greater than $5 million in ACV (up ~23% YoY), logging 19 transactions over $5 million in net new ACV during the quarter.
• Agentic AI Consumption: Year-to-date agentic AI production consumption grew more than 13x year-over-year.