ServiceNow Sets $30B Revenue Goal with 20% CAGR and 80%+ Margins
ServiceNow outlined a plan to grow annual subscription revenue from about $15.7 billion in 2026 to $30 billion by 2030, implying roughly 20% CAGR. The company expects to sustain gross margins above 80% with 100-basis-point expansion in 2027 while doubling Now Assist’s annual contract value to $1.5 billion.
1. Long-Term Revenue Guidance
ServiceNow projects annual subscription revenue to climb from an estimated $15.7 billion in fiscal 2026 to $30 billion by 2030, reflecting about 20% compounded annual growth. This target underscores the company’s confidence in expanding its enterprise workflow platform, driven by accelerating AI integration and cross-sell opportunities across existing clients.
2. Margin and Profitability Outlook
The firm anticipates maintaining gross margins above 80%, with a planned 100-basis-point expansion in 2027 despite increased AI infrastructure costs. Management highlighted disciplined expense control and higher-value AI services as key levers to preserve profitability while investing in R&D and data center capacity.
3. AI Monetization and Pricing Strategy
Central to the growth plan is Now Assist, ServiceNow’s AI-powered automation suite, which is expected to more than double annual contract value to over $1.5 billion by year-end 2026. The company is also introducing a metered layer for external AI agents to access customer data, signaling a shift away from traditional per-seat pricing and toward usage-based models.