ServiceNow (NOW) Investor Day 2026 summary

Vision and strategic direction

• Aims to be the defining enterprise software company of the 21st century, targeting $30B+ subscription revenue by 2030, with a stretch goal of $32B, doubling from 2026 levels.

• Pursuing a $600B total addressable market by 2028, driven by AI, agentic workflows, and expansion into security, CRM, and data analytics.

• Focused on being the AI Control Tower for business reinvention, integrating AI natively across all products and workflows, with an emphasis on agentic AI and autonomous workflows.

• Expanding from IT into CRM, security, risk, and mid-market segments, leveraging acquisitions like Moveworks, Armis, Veza, and data.world.

• Emphasizes customer trust, loyalty, security, and governance as foundational elements, with a platform approach that welcomes integration with all major AI and cloud providers.

Product innovation and AI transformation

• Launched AI Control Tower, Action Fabric, and autonomous workforce solutions, embedding AI agents in every app and workflow for multi-modal, autonomous experiences.

• Workflow Data Fabric and RaptorDB enable real-time, governed, and contextualized data access and analytics at scale, delivering high growth and scalability.

• EmployeeWorks and Moveworks integration create a unified AI front door for employees, driving productivity and cost savings.

• Autonomous IT specialists and CRM agents automate high-volume, complex tasks, reducing labor costs and accelerating outcomes.

• Security and risk portfolio, enhanced by Armis and Veza, delivers comprehensive asset, identity, and access governance.

Financial guidance and business model evolution

• Achieved $13B subscription revenue in 2025, with a 24% five-year CAGR; on track to exceed $15.7B in 2026.

• AI ACV target raised to $1.5B for 2026, with 30% of ACV expected from AI by 2030; Now Assist ACV more than doubled year-over-year.

• Shifted to hybrid and consumption-based pricing, with over 50% of net new business now non-seat-based, expanding monetization opportunities.

• AI-driven productivity gains have delivered $300M+ in annualized cost savings, supporting margin expansion and operational discipline.

• Committed to sub-10% stock-based compensation by 2029 and maintaining gross margins above 80% as AI scales.