# ServiceNow raises subscription outlook to $15.785 billion

_Published Wednesday, October 28, 2026 at 10:19 PM EDT · Products · Latest · Tier 2 — Notable_

![ServiceNow raises subscription outlook to $15.785 billion — Primary](https://s.yimg.com/lo/mysterio/api/63ffe3b590dd36f6a8311c485d5a1da2030600e4afe1c89701c9b4d81d28596f/lightyear_networkapi/resizefill_w1200%3Bquality_80%3Bformat_webp/https%3A%2F%2Fmedia.zenfs.com%2Fen%2Fmarketbeat_955%2F13ebc45d3add7cb4c18d9e51f5f8e369.png)

ServiceNow raised its 2026 subscription-revenue outlook to $15.785 billion and its free-cash-flow-margin target to 36%, Yahoo Finance reported. Third-quarter subscription revenue reached $3.988 billion, growing 20.5% in constant currency and exceeding the high end of company guidance by 50 basis points.

The company also raised its year-end target for AI annual contract value to more than $1.7 billion. Chief Executive Bill McDermott said AI net new annual contract value rose 65% year over year as ServiceNow combines subscriptions with consumption-based AI offerings. Its quarterly non-GAAP operating margin was 32.5%; free-cash-flow margin was 20%.

## Sources

- [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/servicenow-now-said-q3-earnings-010406795.html)

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Canonical: https://techandbusiness.org/newswire/0nBL4VJgOoP7J3PlOYuLrG
Published: 2026-10-29T02:19:00.928Z
Story chronology: 2026-10-29T01:04:06.000Z
Retrieved: 2026-10-29T04:45:31.914Z
Publisher: Tech & Business (techandbusiness.org)