Overview
- ServiceNow reported revenue growth accelerating to 24% year over year in Q2 2026, continuing a quarter-to-quarter pickup in growth this year.
- Management said ServiceNow AI has crossed $1 billion in annual contract value and that customers running agentic AI in production rose ninefold over the prior nine months.
- About half of net new business is now non-seat-based as the company moves from per-seat licensing to consumption pricing that charges for workflow use rather than named users.
- Management raised full-year subscription guidance and reiterated longer-term goals, including a roughly $15.755–15.77 billion subscription revenue range for 2026 and a $32 billion revenue target for 2030.
- Investors remain concerned about margin pressure from higher AI model and hyperscaler hosting costs and about trust after the company disclosed a critical platform vulnerability that was reported to have been exploited, making conversion of AI adoption into durable, profitable contracts the main watchpoint.