ServiceNow (NOW) presented its outlook at Deutsche Bank's 2026 Technology Conference in Southern California on Aug. 27, 2026. The software firm reported second‑quarter revenue growth of 23%, surpassing its 20% internal benchmark.
AI‑related revenue reached the $1 billion mark in Q2, and the company confirmed its full‑year 2026 AI revenue guidance of $1.5 billion. AI now accounts for roughly 9.5% of ServiceNow's approximately $16 billion revenue base, with a longer‑term goal of 30% AI contribution by 2030.
Full‑year 2026 revenue is expected to be $15.8 billion, or $15.6 billion excluding the impact of recent acquisitions. The firm reiterated its 2030 revenue ambition of $30‑$32 billion, aligned with its “Rule of 60” framework.
Internal AI efficiencies are projected to generate $500 million in 2026, allowing ServiceNow to keep headcount flat despite integrating acquired businesses. The company completed a $2 billion share repurchase in Q1 and retains more than $4 billion of authorized buyback capacity.
ServiceNow highlighted several growth vectors: security, data and analytics, and CRM each expected to expand over 25% across the next three years. The security business recently crossed $1 billion in annual contract value, positioning ServiceNow among the top eight global security providers after acquiring Armis and Veza.
Product pricing is being lifted, with the Prime bundle seeing a price increase of more than 30% and other bundles rising 20%‑30%.
The company also discussed market expansion. A new offering for small and medium businesses targets the “Fortune 500,000” segment, while U.S. federal and state agencies are standardizing on ServiceNow's platform. A pilot with the City of Raleigh demonstrated 98% accuracy for an L1 specialist and automated 65% of requests within 10‑15 weeks, delivering over $5 million in efficiency benefits in a 12‑week trial.
At the time of the briefing, ServiceNow's market valuation stood at $143 billion, with a price‑to‑earnings multiple of 86.57, a gross profit margin of 74.77%, and levered free cash flow of $4.58 billion over the trailing twelve months. The stock was quoted at $145.59, up 6.49%.
CEO and board member Fred Luddy, CFO Gina Mastantuono, and Deutsche Bank software equity researcher Brad Zelnick fielded questions on AI integration, pricing strategy, and the company's “AI Control Tower,” which Mastantuono described as a tool for CFOs to monitor spend and ROI across AI vendors.
