Home / Business and Economy / ServiceNow AI Surges Past $1 Billion ACV Milestone
ServiceNow AI Surges Past $1 Billion ACV Milestone
14 Sep
Summary
- ServiceNow's AI products surpassed $1 billion in annual contract value.
- AI agent deployments increased ninefold in just nine months.
- The company raised full-year subscription revenue guidance again.
Enterprise software company ServiceNow has announced its artificial intelligence products have surpassed $1 billion in annual contract value (ACV). This achievement marks a rapid climb for the AI segment, which is one of the fastest-growing parts of the business.
Specifically, ServiceNow's generative AI product line, Now Assist, saw its net new ACV more than double year over year in Q4 2025. Customer adoption of AI agents, which complete tasks autonomously, has also accelerated dramatically.
Deployments of these agentic AI solutions increased ninefold within a nine-month period. Furthermore, customers committing over $1 million annually to Now Assist grew by more than 130% in Q1 2026.
This AI momentum occurs alongside robust performance of ServiceNow's core platform. Subscription revenue grew 24.5% year over year to approximately $3.9 billion in Q2 2026. Management has consequently raised its full-year subscription revenue forecast for the second time this year.
The company is optimistic about continued AI expansion, with a prediction that its AI business could triple to $3 billion in ACV before 2029, requiring sustained annual growth exceeding 55%.
