ServiceNow reported third-quarter 2026 subscription revenues of $3.98 billion, up 21% year on year (20.5% in constant currency), ahead of the high end of its guidance by 50 basis points.
Current remaining performance obligations reached $13.65 billion, up 20.5% year on year, and total remaining performance obligations stood at $29.7 billion, up 22%. Non-GAAP operating margin was 32.5%, 150 basis points above guidance, non-GAAP diluted EPS was $1.00 and the renewal rate was 98%. The company closed 19 deals above $5 million in net-new ACV, up more than 135% on the year.
On AI, net-new ACV was up 65% year on year, and ServiceNow raised its target again to $1.7 billion of AI ACV by the end of 2026. Net-new ACV for its Super Intelligence Control Tower grew more than sixfold, AI deals above $1 million grew 4.5 times and year-to-date agentic AI consumption in production is up 13 times.
ServiceNow lifted its full-year subscription revenue guidance from $15.770 billion to $15.785 billion at the midpoint, raised its free cash flow margin outlook from 35% to 36% and held its non-GAAP operating margin at 31.5%.
The company paired the results with a set of announcements. A partnership with OpenAI brings a ChatGPT plug-in that can reach the ServiceNow Action Fabric, with the work extending to AI governance, cybersecurity remediation and agentic development. A new Control Tower Alliance, with Anthropic, AWS, Cisco, HiddenLayer, Kong, NVIDIA, Okta, OpenAI, Stripe, WitnessAI and Zenity as founding members, aims to help enterprises adopt AI safely at scale. HPE will use ServiceNow to transform customer support and field service for its Cloud and AI business, and Stagwell is consolidating four service desks across 70-plus agencies, 10,000 employees and more than 40 countries onto the ServiceNow AI Platform.
The results follow an expanded partnership with Google Cloud, announced a day earlier, that connects ServiceNow's industry workflows to Gemini Enterprise.
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