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ServiceNow Beats Q3 Expectations on Rapid Enterprise Adoption of Now Assist AI

ServiceNow beat third-quarter expectations as enterprise adoption of its Now Assist generative AI workflow solutions drove accelerated subscription growth and margin expansion.

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ServiceNow Delivers Strong Q3 Results Powered by Generative AI Adoption

ServiceNow, Inc. (NYSE: NOW) announced third-quarter 2026 financial results that exceeded market guidance, buoyed by the rapid enterprise rollout of its Now Assist generative AI platform.

Financial Summary

  • Subscription Revenue: Maintained double-digit expansion, led by large enterprise contract renewals and AI add-on modules.
  • Now Assist Penetration: Annual contract value (ACV) from Now Assist generative AI products expanded rapidly, with clients deploying autonomous IT and customer service workflows.
  • Profitability: Operating margins broadened as internal automation reduced operational overhead.

Management Commentary

Chief Executive Officer Bill McDermott stated that enterprise demand for workflow orchestrations that embed AI directly into core business operations has made ServiceNow an essential operating system for modern digital transformation.