ServiceNow expects AI deployment investments to trim Q4 subscription revenue growth by 50 basis points
NOW•ServiceNow forecasts 2026 subscription revenue of $15.78 billion to $15.79 billion, up 22.5%, and fourth-quarter growth of 21.5% in constant currency. AI deployment investments are expected to shift 50 basis points of fourth-quarter subscription revenue growth into professional services.
1. Revenue outlook
ServiceNow forecasts 2026 subscription revenue of $15.78 billion to $15.79 billion, representing 22.5% growth. Fourth-quarter subscription revenue growth is projected at 21.5% in constant currency, while current remaining performance obligations are expected to grow 18.5%. The company forecasts a 32% non-GAAP operating margin for the quarter and 31.5% for the full year.
2. AI investment impact
AI deployment investments are expected to shift 50 basis points of fourth-quarter subscription revenue growth into professional services, compared with 25 basis points previously. Termination-for-convenience provisions are expected to exclude approximately 50 basis points of year-over-year subscription backlog growth from current remaining performance obligations at year-end.
