ServiceNow stock rises as AI targets and cash outlook improve
Published on 11/03/2026 at 16:43 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth Holds, Expectations Rise
- Third-quarter subscription revenue increased 21 percent year over year to 3.988 billion US dollars.
- Management raised the 2026 AI annual contract value target to 1.7 billion US dollars.
- Fourth-quarter current remaining performance obligation growth is expected to slow to 18.5 percent.
- The full-year non-GAAP free-cash-flow margin target increased to 36 percent.
ServiceNow reported strong third-quarter subscription growth on October 28 while lifting its annual AI contract-value target and cash-flow outlook, according to AD HOC NEWS. The update leaves investors weighing resilient demand against a more demanding forward growth comparison.
AI Momentum Meets Higher Expectations
Subscription revenue reached 3.988 billion US dollars in the quarter, up 21 percent from a year earlier. Total revenue increased 20.5 percent to 4.106 billion US dollars, while current remaining performance obligations rose 20.5 percent to 13.65 billion US dollars.
Management raised its 2026 AI annual contract value target to 1.7 billion US dollars from 1 billion at the start of the year. President and Chief Financial Officer Gina Mastantuono said AI net new annual contract value exceeded expectations and that customer consumption of agentic AI in production increased more than 13-fold year over year.
Forward Growth Sets The Test
ServiceNow expects current remaining performance obligations to grow 18.5 percent in the fourth quarter, below the third-quarter pace. Fourth-quarter subscription revenue guidance is 4.245 billion to 4.255 billion US dollars, while the full-year subscription revenue outlook stands at 15.780 billion to 15.790 billion US dollars.
The company also lifted its full-year non-GAAP free-cash-flow margin target to 36 percent, citing lower capital spending and a capital-efficient approach to AI investment. Non-GAAP free cash flow reached 822 million US dollars in the third quarter, compared with 592 million US dollars a year earlier. GAAP net income fell to 277 million US dollars from 502 million US dollars, highlighting the difference between reported and adjusted performance.
What Changed Since The Last Report
ServiceNow stock traded at 96.10 euros on Lang & Schwarz at 16:35 CET on Tuesday, November 3, 2026. That was 2.80 percent above the 93.48-euro quote at 14:39 CET in the previous report on the same day.
Read the real-time quote of ServiceNow stock for the latest trading indication.
The broader technology market can be followed through the Euro Stoxx 50 market overview.
Investors will focus on whether AI contract growth can offset the slower expected current remaining performance obligation growth. More earnings coverage and company developments are available in more news and analyses on ServiceNow stock.
ServiceNow stock at a glance
- Company: ServiceNow Inc.
- ISIN: US81762P1021
- Ticker: NOW
- Exchange: Lang & Schwarz
- Price: 96.10 euros at 16:35 CET on November 3, 2026
- Third-quarter subscription revenue: 3.988 billion US dollars, up 21 percent year over year
- 2026 AI annual contract value target: 1.7 billion US dollars
- 2026 free-cash-flow margin target: 36 percent
