tech
May 5, 2026
ServiceNow lays out path to $30 billion in annual subscription revenue as AI bets accelerate
ServiceNow's new forecasts are aimed at reassuring investors that AI is not a threat to its business and instead could be a major growth driver.
TL;DR
- ServiceNow targets over $30 billion in subscription revenue by 2030, up from an expected $15.7 billion in 2026.
- The company aims for a compound annual growth rate of approximately 20%.
- AI reasoning accounts for less than 10% of ServiceNow's cost to serve, maintaining gross margins above 80%.
- ServiceNow's Now Assist AI offering surpassed $600 million in ACV in 2025 and is expected to exceed $1.5 billion by the end of 2026.
- By 2030, Now Assist is expected to account for over 30% of total ACV.
- Internal AI deployment generated $500 million in annualized value in 2025, including $100 million in operating expense savings.
- Operating expense savings from internal AI are expected to exceed $200 million in 2026.