ServiceNow (NOW) official guidance

While still early, we're already tracking ahead of our target for AI to reach 30% of ACV by 2030.

•ServiceNow raises AI annual contract value target again for 2026 to $1.7 billion, up 70% from the beginning of the year

ServiceNow AI ACV exceeded expectations again, surpassing $1 billion, keeping us on track to beat our target of one and a half billion ACV by the end of 2026.

| Weighted-average shares used to compute diluted net income per share | | 1.04 | | |

We expect operating margin of 31.5% and free cash flow margin of 35%, and GAAP diluted weighted average outstanding shares of 1.04 billion.

| Weighted-average shares used to compute diluted net income per share | | 1.04 | | |

This includes a 200 basis points headwind from Armis and GAAP diluted weighted average outstanding shares of 1.04 billion.

| Weighted-average shares used to compute diluted net income per share | | 1.04 | |

Finally, we expect GAAP diluted weighted average outstanding shares of 1.05 billion.

| Weighted-average shares used to compute diluted net income per share | | 1.05 | | |

| Weighted-average shares used to compute diluted net income per share | | 1.05 | | |

| Non-GAAP free cash flow margin | 36 | % |

We expect operating margin of 31.5% and free cash flow margin of 35%, and GAAP diluted weighted average outstanding shares of 1.04 billion.

| Non-GAAP free cash flow margin | 35 | % |

We expect free cash flow margin of 35%. This includes a 200 basis points headwind from Armis and GAAP diluted weighted average outstanding shares of 1.04 billion.

| Non-GAAP free cash flow margin | 35 | % |

We expect free cash flow margin of 36%, up 100 basis points year-over-year, and 350 basis points ahead of our target that we gave at Financial Analyst Day in May.

| Non-GAAP free cash flow margin | 36 | % |

| Non-GAAP subscription margin | 81 | % |

We expect subscription gross margin of 81%, reflecting more customers utilizing our hyperscaler partnerships as well as accelerating AI adoption.

| Non-GAAP subscription margin | 81 | % |

We now expect subscription gross margin of 81.5% and operating margin of 31.5%, which include a 25 basis points and 75 basis points headwind from Armis respectively.

| Non-GAAP subscription margin | 81.5 | % |

We expect subscription gross margin of 82%, reflecting incremental data center investments related to public cloud, geo expansion, and AI.

| Non-GAAP subscription margin | 82 | % |

| Non-GAAP operating margin | 31.5 | % |

We expect operating margin of 31.5% and free cash flow margin of 35%, and GAAP diluted weighted average outstanding shares of 1.04 billion.

| Non-GAAP operating margin | 31.5 | % |

We now expect subscription gross margin of 81.5% and operating margin of 31.5%, which include a 25 basis points and 75 basis points headwind from Armis respectively.

| Non-GAAP operating margin | 31.5 | % |

We expect an operating margin of 32%, up 100 basis points year-over-year, driven by OpEx savings enabled by AI efficiencies.

| Income from operations | | | | 32 | % |

| Non-GAAP operating margin | 32 | % |

| Amortization of purchased intangibles as % of total revenues | 4 | % |

| Business combination and other related costs as % of total revenues | 1 | % |

| GAAP subscription gross margin | 75 | % |

| GAAP subscription gross margin | 76 | % |

| GAAP subscription gross margin | 78 | % |

| GAAP net cash provided by operating activities as % of total revenues | 37 | % |

| GAAP net cash provided by operating activities as % of total revenues | 39 | % |

| GAAP net cash provided by operating activities as % of total revenues | 41 | % |

| GAAP operating margin | 10 | % |

| GAAP operating margin | 11 | % |

| GAAP operating margin | 15 | % |