ServiceNow Raises AI Annual Contract Value Target to Over $1.7 Billion
During its Q3 2026 earnings call, ServiceNow (NOW) announced a significant upward revision of its full-year artificial intelligence annual contract value target, raising it from $1.5 billion to over $1.7 billion. This acceleration is driven by enterprise clients transitioning from initial software testing into full automated deployment and production environments. The company is also implementing a strategic shift in its sales model, providing specialized deployment assistance for large customer agreements. While this temporarily reallocates some revenue from subscriptions to professional services, management expects it to accelerate implementation speeds and drive higher subscription renewals. Furthermore, ServiceNow reported massive growth in high-value AI deals, with contracts exceeding $1 million growing 4.5x year-over-year.
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