ServiceNow has recently announced that it is aiming to hit and exceed $1B in annual contracted revenue (revenue for ServiceNow’s AI product) by next year.
This statement came from the company’s CFO, Gina Mastantuono, at this year’s annual conference, Knowledge, which is currently taking place in Las Vegas, USA.
New AI Heights
This new 2026 target was announced on Monday at ServiceNow’s flagship conference and relates to the generative AI product Now Assist, which currently has more than $250M in annual contract value, as reported by Bloomberg.
ServiceNow’s AI Journey
ServiceNow’s growth in the tech/IT sector has been monumental over the last five years, with some notable moments including the company’s transition into the CRM space earlier this year and the release of its own AI agents through the Now Platform late last year.
This has been great for ServiceNow’s stock, which has jumped 23% since April 23, indicating that the company’s previous outlook for sales growth was grounded very much in reality, suggesting demand for its software remains resilient amid uncertainty about the economic effects of escalating US tariffs.
Summary
As we progress further into 2025 and 2026 appear closer on the horizon, it’s likely that we will continue to see a wealth of exciting news and advancements from ServiceNow.
It has been revealed that some customers are spending 60% more on ServiceNow products after upgrading for access to the AI features, which is a great sign for the company and the wider AI sector, especially as pricing has often been cited as one of the main hindrances to AI’s success.
Analysts predict that ServiceNow is likely to hit $13B this year in annual revenue – whether this happens or not, ServiceNow’s success is unlikely to stop here.