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 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.

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.

We expect operating margin of 31%, and we expect 1.05 billion GAAP diluted weighted average outstanding shares for the quarter.

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.

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

We will complete this cycle of 2026 and start 2027 with the exact same headcount before we did the acquisitions.

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.

We expect operating margin of 31%, and we expect 1.05 billion GAAP diluted weighted average outstanding shares for the quarter.

We expect cRPO growth of 20% on a constant currency basis.

For 2026, we're raising our subscription revenues by $15 million at the midpoint from $15.755 billion-$15.770 billion, representing 21% year-over-year growth on a constant currency basis.

For Q3, we expect subscription revenues between $3.975 billion and $3.980 billion, representing 20% year-over-year growth on a constant currency basis.

Of course, we set a course to $32 billion in revenue in 2030, operating at the rule of 60 and beyond.

| Amortization of purchased intangibles as % of subscription revenues | 3 | % |

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

| GAAP subscription gross margin | 75 | % |

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

| GAAP operating margin | 10 | % |

| GAAP operating margin | 8 | % |

| cRPO | | 19.5 | % | 20 | % |

| cRPO | | 19.5 | % | 20 | % |

| Subscription revenues | $15,760 - $15,780 | 22.5 | % | 21 | % |

| Subscription revenues | $3,975 - $3,980 | 20.5 | % | 20 | % |

| Severance costs as % of total revenues | 1 | % |

| Severance costs as % of total revenues | 1 | % |

| Stock-based compensation expense as % of total revenues | 15 | % |

In addition, the company shared a commitment to reduce stock-based compensation to less than 10% of revenue by 2029.

| Stock-based compensation expense as % of total revenues | 16 | % |

| Stock-based compensation expense as % of subscription revenues | 2 | % |

We expect an operating margin of 26.5%, which includes a 125 basis points headwind from Armis, and we expect 1.04 billion GAAP diluted weighted average outstanding shares for the quarter.

We expect an operating margin of 26.5%, which includes a 125 basis points headwind from Armis, and we expect 1.04 billion GAAP diluted weighted average outstanding shares for the quarter.

We expect CRPO growth of 19.5% on a constant currency basis.

For Q2, we expect subscription revenues between $3.815 billion and $3.820 billion, representing 21%-21.5% year-over-year growth on a constant currency basis.

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

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

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

| Business combination and other related costs as % of total revenues | 2 | % |

| Purchases of property and equipment as % of total revenues | (5 | %) |

| GAAP operating margin | 3.5 | % |

| cRPO | | 19 | % | 19.5 | % |

| cRPO | | 19 | % | 19.5 | % |

| Subscription revenues | $3,815 - $3,820 | 22.5 | % | 21% - 21.5% |

| Severance costs as % of total revenues | 1 | % |

| Stock-based compensation expense as % of total revenues | 16 | % |

Now Assist continues to outperform all expectations, surpassing $600 million in ACV and tracking well towards our $1 billion-plus target for 2026.

We expect an operating margin of 31.5%, and we expect 1.05 billion GAAP diluted weighted average outstanding shares for the quarter.

We expect an operating margin of 31.5%, and we expect 1.05 billion GAAP diluted weighted average outstanding shares for the quarter.

We expect CRPO growth of 20% on a constant currency basis.

For Q1, we expect subscription revenues between $3.65 billion and $3.655 billion, representing 18.5%-19% year-over-year growth on a constant currency basis.

| GAAP operating margin | 14 | % |

| cRPO | | 22.5 | % | 20 | % |

| cRPO | | 22.5 | % | 20 | % |

| Subscription revenues | $3,650 - $3,655 | 21.5 | % | 18.5% - 19% |

So yes, we're on pace to exceed $0.5 billion by the end of the year, which is tracking ahead of where we thought we'd be.

We continue to expect subscription gross margin of 83.5% and GAAP diluted weighted average outstanding shares of 210 million.

Finally, we expect 210 million GAAP diluted weighted average outstanding shares for the quarter.

We're also raising our full year free cash flow margin target by 200 basis points from 32% to 34%.

We continue to expect subscription gross margin of 83.5% and GAAP diluted weighted average outstanding shares of 210 million.

We are raising our full year operating margin target by 50 basis points from 30.5% to 31% as AI operational efficiencies continue to drive incremental leverage.

We expect an operating margin of 30%.

We expect cRPO year-over-year growth of 23% or 19% on a constant currency basis.

We expect cRPO year-over-year growth of 23% or 19% on a constant currency basis.

For 2025, we are raising our subscription revenues by $55 million at the midpoint to $12.835 billion to $12.845 billion, representing 20.5% year-over-year growth or 20% on a constant currency basis.

With that in mind, for Q4, we expect subscription revenues between $3.42 billion and $3.43 billion, representing 19.5% year-over-year growth or 17.5% to 18% on a constant currency basis.

| Weighted-average shares used to compute diluted net income per share | | 210 | | | |

| Weighted-average shares used to compute diluted net income per share | | 210 | | | |

| GAAP subscription gross margin | 80 | % |

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

| GAAP operating margin | 14 | % |

| cRPO | | 23 | % | 19 | % |

| Subscription revenues | $12,835 - $12,845 | 20.5 | % | 20 | % |

| Subscription revenues | $3,420 - $3,430 | 19.5 | % | 17.5% - 18% | |