US EditionServiceNow’s AI Strategy Fuels Strong Q4 Earnings As Enterprise Adoption Accelerates
- On Wednesday, ServiceNow reported Q4 revenue of $3.57 billion, beating the $3.53 billion consensus and raised full-year 2026 subscription revenue guidance to $15.53 billion–$15.57 billion.
- Bolstering its platform, ServiceNow acquired Moveworks for $2.85 billion, Armis for $7.75 billion, and Veza, while expanding AI partnerships with Anthropic and collaborating with OpenAI to embed models into Build Agent.
- Subscription revenue for the quarter ended December 31 was $3.47 billion, up 21%, and Now Assist more than doubled net new annual contract value in Q4 with non‑GAAP gross margin 80.5% and $813 million operating cash flow.
- Investors remain skeptical after ServiceNow’s shares plunged 45% last year despite strong results, and analysts warn the OpenAI partnership must show real revenue or the stock will stay under pressure.
- With the stock at $132, analysts want proof that roughly 20% revenue growth can hold as ServiceNow scales past $13 billion annual revenue, yet 42 of 47 rate the stock a buy with a $206 average price target.
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