ServiceNow beat the top end of its Q1 2026 guidance across every major metric on Monday, posting $3.671 billion in subscription revenues and lifting its full-year target to $15.735–$15.775 billion — a 20.5–21% constant-currency growth range it describes as increasingly anchored by AI platform spending.
The company's Now Assist AI product crossed a threshold that its leadership has been tracking closely: customers spending more than $1 million annually on the product grew 130% year-on-year, putting ServiceNow on track to exceed its stated $1 billion-plus ACV target for the product in 2026. AI Control Tower, a newer workload management offering, saw average deal sizes more than double quarter-on-quarter.
Larger deal activity was conspicuous. Sixteen transactions cleared $5 million in net new annual contract value during Q1 — an 80% increase year-on-year. The total number of customers spending more than $5 million annually with ServiceNow reached 630, up 22% on the prior year.
The quarter also brought portfolio movement. ServiceNow completed its acquisition of Armis, a cybersecurity asset intelligence vendor, ahead of schedule, accelerating expansion of what it describes as an autonomous security platform. Moveworks, the AI agent for enterprise service management acquired in 2025, closed more deals above $1 million in Q1 alone than it had in the entirety of last year. Sales CRM net new ACV grew more than fivefold year-on-year, with deal count up over 80%.
Share buybacks were substantial. The company repurchased approximately 20.1 million shares in Q1 — nearly double the volume for all of 2025 — with approximately $4.2 billion of authorisation remaining.
Remaining performance obligations reached $27.7 billion, up 23.5% on a constant-currency basis. Current RPO, the twelve-month portion, came in at $12.64 billion, 100 basis points above guidance. Non-GAAP operating margin was 32%, 50 basis points ahead. Diluted non-GAAP EPS was $0.97.
The raised 2026 guidance includes a 31.5% non-GAAP operating margin and 35% free cash flow margin target.
