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ServiceNow Eyes $30B Revenue by 2030 Fueled by AI
11 May
Summary
- ServiceNow targets over $30 billion in annual subscription revenue by 2030.
- AI monetization is expected to drive growth while maintaining high gross margins.
- The company aims for a Rule of 60+ by 2030, balancing growth and profitability.
ServiceNow has outlined a strategic plan targeting over $30 billion in annual subscription revenue by 2030, with an upward revision to more than $32 billion. This projection suggests a compound annual growth rate of approximately 20%.
Artificial intelligence is central to this growth strategy. The company's Now Assist product is expected to surpass $1.5 billion in annual contract value by the end of 2026 and represent over 30% of total annual contract value by 2030. ServiceNow also anticipates that AI reasoning costs will remain less than 10% of its total cost to serve, enabling gross margins to stay above 80%.
Internal AI deployments in 2025 generated $500 million in annualized value, including $100 million in operating expense savings, which are projected to exceed $200 million in 2026. This dual benefit of AI, boosting sales and reducing costs, supports the company's external revenue objectives.
Furthermore, ServiceNow reported that 91% of its net new annual contract value in 2025 came from customers purchasing five or more products. This indicates continued potential for upselling within existing accounts, reinforcing confidence in the 2030 revenue target as a benchmark for execution.
