ServiceNow Aims for $15B+ Subscription Revenue by 2026 with AI-Driven 21.5% Growth

ServiceNow is targeting $15B-plus subscription revenue for 2026, driven by AI momentum. Q2 2025 results showed 21.5% subscription revenue growth, with CEO William McDermott highlighting the company's elite-level execution and leadership in enterprise AI. The results continue a long track record of strong performance for ServiceNow.

ServiceNow (NYSE: NOW), a leading AI platform for business transformation, reported robust financial results for the second quarter of 2025. The company's subscription revenues reached $3,113 million, marking a 22.5% year-over-year (YoY) growth and a 21.5% increase in constant currency [1]. This performance highlights the company's continued momentum in the AI-driven enterprise market.

The quarter also saw significant growth in total revenues, which reached $3,215 million, representing a 22.5% YoY increase and a 21.5% rise in constant currency. Current remaining performance obligations (cRPO), which represent contract revenue that will be recognized as revenue in the next 12 months, stood at $10.92 billion, up 24.5% YoY and 21.5% in constant currency [1].

ServiceNow's CEO, William McDermott, emphasized the company's elite-level execution and leadership in enterprise AI, stating, "Our beat-and-raise quarter showcases the mission-critical nature of the ServiceNow AI Platform. Every business process in every industry is being refactored for agentic AI. ServiceNow has never been more differentiated as a full stack agentic operating system for the enterprise" [1].

The company also reported strong growth in the number of customers with more than $20 million in annual contract value (ACV), which grew by over 30% YoY. Additionally, ServiceNow ended the quarter with 528 customers with more than $5 million in ACV, representing approximately 19.5% YoY growth [1].

Looking ahead, ServiceNow is targeting $15 billion-plus in subscription revenue for 2026, driven by its AI momentum and expanding market opportunities. The company's strong Q2 2025 results, coupled with its strategic partnerships and acquisitions, position it well for continued growth in the enterprise AI market.

References:
[1] https://www.servicenow.com/company/media/press-room/second-quarter-2025-financial-results.html