ServiceNow (NOWW) Q3 2026 Earnings Report

The call was strongly positive, with Q3 revenue, cRPO, operating margin and free cash flow exceeding guidance; AI ACV, consumption and deal activity accelerating; customer adoption broadening across workflows; and full-year subscription revenue and free cash flow margin guidance being raised. The primary cautions were slower expected Q4 cRPO growth, accounting-related pressure from deployment services and T4C provisions, and the higher on-premises mix. Management nevertheless expressed high confidence in the growth opportunity and described the business as being in its strongest position.

For 2026, ServiceNow is raising subscription revenues by $15 million at the midpoint from $15.77 billion to $15.785 billion, representing 21% year-over-year growth on a constant currency basis, and raising its full year free cash flow margin target by 100 basis points from 35% to 36%; it continues to expect subscription gross margin of 81% and operating margin of 31.5%, up 50 basis points year-over-year, and expects GAAP diluted weighted average outstanding shares of 1.04 billion. For Q4, it expects subscription revenues between $4.245 billion and $4.255 billion, representing 21.5% year-over-year growth on a constant currency basis, cRPO growth of 18.5% on a constant currency basis, an operating margin of 32%, and 1.05 billion GAAP diluted weighted average outstanding shares; it also raised its AI ACV target to $1.7 billion by the end of 2026.