ServiceNow, Inc. Q3 2026 Earnings Recap

ServiceNow shares fell 26.9% after earnings, despite beating its stated Q3 guidance. The transcript does not identify a specific cause for the selloff; it does highlight a modest Q4 subscription-revenue growth outlook of 19.5%–20.0% in constant currency, below Q3’s 20.5%, which may have weighed on investors.

Key Takeaways

• Q3 subscription revenue grew 20.5% in constant currency, 50 basis points above the high end of guidance; cRPO grew 21%, 100 basis points above guidance.
• Operating margin was 32.5%, 150 basis points above guidance; free cash flow margin was 20%.
• AI net new ACV grew 65% year over year, while the company raised its year-end AI target from $1.5 billion to more than $1.7 billion.
• Q4 guidance calls for subscription-revenue growth of 19.5%–20.0% in constant currency, compared with Q3’s 20.5%.
• Management cited 19 deals above $5 million in net new ACV, up 135% year over year, and RPO of $30 billion, up 23%.