ServiceNow Inc
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+ FollowMarket Cap$109.11B
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Earnings Call Q3 2026
October 28, 2026 - AI Summary
Q3 performance “trifecta” (beat across the board)
- Subscription revenue: $3.988B, +20.5% YoY (constant currency), 50 bps above the top-end of guidance.
- cRPO (constant-currency RPO): +21% YoY, 100 bps above guidance.
- Profitability: Non-GAAP operating margin 32.5%, +150 bps above guidance; Free cash flow margin 20%.
- Growth engine / deals: 19 net-new deals > $5M ACV in Q3 (+135% YoY); 680 customers > $5M ACV; $30B RPO growing +23% YoY.
- Renewals: 98% renewal rate (best-in-class retention).
AI monetization accelerated—raised AI target again
- AI net new ACV: +65% YoY in Q3.
- AI deals > $1M: +4.5x YoY; deals spanning 5+ AI products: +8.5x YoY.
- Agentic AI consumption in production: up 13x YoY YTD; Action Fabric assists: +500% month-over-month.
- AI ACV target raised (again): from $1.5B to $1.7B+ by year-end 2026.
- Big AI platform highlights (commercial proof points):
- “Control Tower” net-new ACV >6x YoY.
- EmployeeWorks hit $100M ACV in <3 quarters.
Hybrid business model shifting toward consumption; “deployment expertise” is intentional (and affects accounting metrics)
- Management emphasized ServiceNow is building a “consumption engine” (subscription + usage tokens/consumption), positioning it as the “governed execution layer for enterprise AI.”
- Strategic decision (important nuance): they’re investing in customer deployment success for select large AI deals.
- Accounting nuance: deployment value is carved out from subscription and recorded as professional services, which can pull down subscription revenue vs. cRPO in the short term—but returns to subscription at renewal.
- Management said this impacts the revenue bridge by ~25 bps in Q3 and ~50 bps expected in Q4.
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Share Statistics
| Market cap | $109.11 Billion |
|---|---|
| Enterprise Value | $123.11 Billion |
| Earnings per Share | $1.69 |
| Beta | 0.99 |
| Outstanding Shares | 1,034,942,000 |
Return
| Return on Equity | 11.55% |
|---|---|
| Return on Assets | 4.56% |
| Return on Invested Capital | 10.23% |
Valuation & Multiples
| P/E Ratio | 75.09 |
|---|---|
| PEG | -167.52 |
| Price to Sales | 7.77 |
| Price to Book Ratio | 9.07 |
| Enterprise Value to Revenue | 7.98 |
| Enterprise Value to EBIT | 61.59 |
| Enterprise Value to Net Income | 85 |
| Total Debt to Enterprise | 0.13 |
| Debt to Equity | 1.32 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 4, 2026
EPS Estimate
$1.03
Consensus analyst estimateRevenue Estimate
$4.10 B
Consensus analyst estimateNext Earnings Call
Expected Date
January 27, 2027
EPS Estimate
$1.08
Consensus analyst estimateRevenue Estimate
$4.37 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 3.92, the ratio is above 1, so institutions hold more puts than calls. That is a more cautious stance.
| Put/Call Ratio | 3.9209▲ 273.78% |
|---|---|
| Total Calls | 154,300▼ 99.64% |
| Total Puts | 605,000▼ 98.81% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 4.87%▼ 77.51% |
|---|---|
| Total Invested | $6.74B▼ 92.03% |
| Investors Holding | 927▼ 1506.00% |
About ServiceNow Inc
29,187 employees
CEO: John Donahoe
ServiceNow, Inc. provides comprehensive cloud computing solutions tailored for enterprises worldwide, enabling them to define, structure, consolidate, manage, and automate a wide array of services. Central to its offerings is the advance...