ServiceNow, Inc. announced financial results for the three months ended September 30, 2026, reporting that it exceeded high-end guidance across its top-line growth and profitability metrics. The company raised its full-year subscription revenues and free cash flow margin outlook.
For the third quarter of fiscal 2027, subscription revenues were $3,988 million, representing 21% year-over-year growth. Total revenues were $4,106 million, a 20.5% increase year-over-year. On a constant currency basis, total revenues grew 20%.
Current remaining performance obligations (cRPO) stood at $13.65 billion as of September 30, 2026, representing 20.5% year-over-year growth. Total remaining performance obligations (RPO) were $29.7 billion, up 22% year-over-year.
ServiceNow reported 19 transactions over $5 million in net new annual contract value (ACV) during the quarter, representing over 135% year-over-year growth. The company ended the quarter with 680 customers with more than $5 million in ACV, an increase of approximately 23% year-over-year.
Regarding AI, the company raised its annual contract value target for 2026 to $1.7 billion, up 70% from the beginning of the year. Year-to-date consumption in production for agentic AI increased more than 13x year-over-year. The company also raised its full-year free cash flow margin target by 100 basis points to 36%.
Recent business highlights include an expanded partnership with OpenAI to develop Security and Risk solutions, a new Control Tower Alliance with founding members including Anthropic, AWS, Cisco, NVIDIA, OpenAI, and Stripe, and the launch of the AI Passport solution to verify AI agent scopes in real-time.
