NOWServiceNow, Inc.
AI revenue and adoption · Q1 2026 earnings call
Information TechnologyMonetizing
35
extracted from this call
5 / 5
financialized — dollar / segment level
Disclosed
arr
ServiceNow management positioned AI as the central growth driver across all five strategic pillars: IT, security, CRM, employee experience, and data fabric. The company disclosed that its Now Assist AI revenue is now tracking toward $1.5 billion in 2026 (up from a prior $1 billion target), with 50% of net new business coming from non-seat-based pricing including AI consumption tokens. Management highlighted concrete internal AI productivity outcomes ($500M in productivity captured internally, 90% of employee IT requests resolved by AI agents) and strong early commercial traction from Moveworks/employee works and AI Control Tower.
1.5
“We're already talking about $1.5 billion now, and it's on a run. So to specifically answer your question, I think it's appropriate for Amit to give you some G2 on how we structured it and why we know it's a winner.”
Adopter
See full leaderboard →87/ 100
100
stage: monetizing · max spec: 5
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rev: arr $2M · 4 quant outcomes
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3 scopes
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35 AI mentions from this call.
Extracted verbatim from the NOW Q1 2026 earnings call transcript. Speaker, section, and specificity tier surfaced for each mention.
- T5Prepared remarks· CEO· Standalone AI product
“A leading online travel company is using ServiceNow agentic AI to deliver 11 million autonomous AI resolutions annually for HR and IT alone. They freed employees to focus on strategic work processes that once took days, now take minutes, the results are transformational. Over 230% ROI, 45,000 hours back to their people and millions saved annually.”
— William McDermott, NOW earnings callServiceNow agentic AI - T5Q&A· CFO· Standalone AI producthow will you measure and kind of derive that assist AI revenue stream?
“we have the exact same methodology, and we will continue to capture only the incremental contribution from the AI capabilities. And so that $1.5 billion that Bill talked about, we're measuring the exact same way as we always measured. We're just hitting our goals a lot quicker than we ever thought we would.”
— Gina Mastantuono, NOW earnings callNow Assist - T5Q&A· CEO· Internal useHelp us kind of understand that long-term strategy and vision and how does that complement the existing now assisted products
“Gina has captured $0.5 billion in productivity on the back of what Amit just said. So the agents are 99% faster than the human. 90% of our cases on employee and customer issues are now resolved by the agents, the Level 1 agents Amit is talking about.”
— William McDermott, NOW earnings callAI specialists, Level 1 support specialist - T5Q&A· CEO· Standalone AI productCould you just comment on with the pricing changes and AI -- less, I think Bill's term was not a sidecar and embedded natively with the shift to the foundation in advance of time per -- how will you measure and kind of derive that assist AI revenue stream?
“We had a goal to be $1 billion on our AI commit this year, as you know. And I think we might have understated that a little bit. We're already talking about $1.5 billion now, and it's on a run.”
— William McDermott, NOW earnings callNow Assist - T5Prepared remarks· CFO· Internal use
“Non-GAAP operating margin was 32%, 50 basis points above our guidance, driven by AI OpEx efficiencies.”
— Gina Mastantuono, NOW earnings callNow on Now - T4Prepared remarks· CEO· Standalone AI product
“Moveworks closed 7-figure deals in Q1. They closed more deals than they did the entire year last year. Now has merged with our employee experience business and rebranded as employee works. So Bob the former CEO of Moveworks, now runs the whole show there, and that business grew 5x year-over-year.”
— William McDermott, NOW earnings callMoveworks, employee works - T4Prepared remarks· CEO· Standalone AI product
“is British engineering and technology company, 45,000 employees, 50 countries, they're using ServiceNow autonomous workflows, employee self-service and has jumped the usability and the outcome by 3x with 38,000 tickets now deflected, resolution time is down by 2 entire days.”
— William McDermott, NOW earnings callautonomous workflows - T4Prepared remarks· CEO· Standalone AI product
“A global power technology leader across 190 countries has gone live with Phase 3 of its ServiceNow deployment, replacing legacy CPQ. Using AI-driven Blueprint automation, the company is reducing new product introduction time from 6 months to 6 weeks.”
— William McDermott, NOW earnings callCPQ, Blueprint automation - T4Prepared remarks· CFO· Standalone AI product
“Now Assist continues to outperform expectations, putting it on a trajectory to exceed our $1 billion target for 2026. In Q1, deals including 3 or more Now Assist products grew nearly 70% year-over-year, including 36 deals with 5 or more products.”
— Gina Mastantuono, NOW earnings callNow Assist - T4Prepared remarks· CEO· Standalone AI product
“A multi-market European telco faced 85-plus fragmented applications, no standard quoting process and a CPQ setup, where introducing a single new product took 3 months. ServiceNow sales CRM with CPQ collapsed this to 1 week.”
— William McDermott, NOW earnings callServiceNow Sales CRM, CPQ - T4Prepared remarks· CEO· Standalone AI product
“Now Assist NNACV to date continues to outperform even our expectations. The number of customers spending $1 million plus grew over 130% year-over-year. Deals over $1 million grew more than 30% year-on-year in Q1.”
— William McDermott, NOW earnings callNow Assist - T4Prepared remarks· CEO· Standalone AI product
“Robin Hood is deflecting 70% of employee requests before human intervention, they've already eliminated 2,200 hours of manual effort monthly, and the success just continues.”
— William McDermott, NOW earnings callenterprise service management foundation - T4Prepared remarks· CEO· Product-embedded AI
“50% of net new business now comes from a non-seat-based pricing model, including tokens and other assets, such as infrastructure, hardware, and connectors.”
— William McDermott, NOW earnings callNow Assist - T4Prepared remarks· CEO· Internal use
“Our own deployment in ServiceNow is resolving 90% of employee IT requests with the specialist resolving assigned cases 99% faster than human agents.”
— William McDermott, NOW earnings callAI specialists, autonomous workforce - T4Q&A· COO· Standalone AI productHelp us kind of understand that long-term strategy and vision
“Typically, a human requires around 2 days based on the case volume to resolve it, we are now able to do that in less than 20 minutes.”
— Amit Zavery, NOW earnings callLevel 1 support specialist, autonomous workforce - T4Prepared remarks· CFO· Standalone AI product
“AI control tower also continues to build momentum, with average deal sizes more than doubling quarter-over-quarter in Q1.”
— Gina Mastantuono, NOW earnings callAI control tower - T4Prepared remarks· CEO· Standalone AI product
“Our sales CRM NNACV grew more than 5x year-over-year. That's quintupled with deal count growing over 80% year-over-year.”
— William McDermott, NOW earnings callServiceNow Sales CRM, CPQ - T4Prepared remarks· CFO· Standalone AI product
“we've already closed 6 deals above $1 million in net new ACV. We're just getting started.”
— Gina Mastantuono, NOW earnings callemployee works, Moveworks - T4Prepared remarks· CFO· Standalone AI product
“Deal volume grew 80% year-over-year in Q1 and included 5 deals over $1 million.”
— Gina Mastantuono, NOW earnings callRaptor DB Pro - T3Prepared remarks· CEO· Standalone AI product
“ServiceNow introduced employee works, combining Moveworks, conversational AI and enterprise search with ServiceNow's unified portal and autonomous Agentic AI workflows. This is available in Teams, Slack, or any browser to turn natural language requests into govern multisystem execution for nearly 200 million employees so far.”
— William McDermott, NOW earnings callMicrosoft Teams, Slackemployee works, Moveworks - T3Q&A· COO· Product-embedded AIhow will you measure and kind of derive that assist AI revenue stream? Just going forward under the new methodology.
“AI capabilities are in each of the SKUs now. And what we did with Pro Plus, which was a higher-end SKU with Assist are now available also for the Foundation and Advanced SKUs. So all of our products now have AI built in. And the incremental assist part of it was going to be counted as our AI revenue.”
— Amit Zavery, NOW earnings callNow Assist, Pro Plus, Foundation SKU, Advanced SKU - T3Prepared remarks· CEO· Product-embedded AI
“We've now trained over 95 billion annual workflows and more than 7 trillion transactions and our 22 years at the center of the world's most sophisticated enterprises is really showing up because it brings unmatched intelligence to every decision.”
— William McDermott, NOW earnings callContext Engine - T3Prepared remarks· CEO· Product-embedded AI
“There is deep technical collaboration between ServiceNow engineers and OpenAI technical advisers. OpenAI native voice and text models are integrated directly into the ServiceNow AI platform, and they're using us as a gateway into the enterprise.”
— William McDermott, NOW earnings callOpenAIServiceNow AI platform - T3Prepared remarks· CEO· Standalone AI product
“A regional Latin American bank is live with ServiceNow, building a full front office experience for relationship managers. Agentic AI is scanning portfolios and auto generating leads using propensity logic tied to their data lake.”
— William McDermott, NOW earnings callServiceNow Sales CRM, agentic AI - T3Q&A· COO· Standalone AI productHow do you see ServiceNow's differentiation evolving from here amidst all the noise?
“we're going beyond just orchestration. There's a lot of context, as Bill mentioned, and we introduced something called Context Engine, which tracks not what decision was -- what the decision was made, but why it was done.”
— Amit Zavery, NOW earnings callContext Engine, AI Control Tower - T3Prepared remarks· CEO· Product-embedded AI
“ServiceNow AI specialists are working side-by-side with Google Gemini, AI agents. They're doing this across 5G networks, retail and IT operations with 0 data movement and 0 gaps in governance.”
— William McDermott, NOW earnings callGoogleServiceNow AI specialists - T3Prepared remarks· CEO· Product-embedded AI
“ServiceNow launched autonomous workforce. Teams of AI specialists with the defined roles that execute enterprise work end to end with built-in governance auditability and human escalation.”
— William McDermott, NOW earnings callautonomous workforce, AI specialists - T3Prepared remarks· CEO· Product-embedded AI
“ServiceNow, NTT, Docomo and StarHub are developing the industry's first inter-carrier autonomous roaming resolution model on the ServiceNow AI platform.”
— William McDermott, NOW earnings callNTT, Docomo, StarHubServiceNow AI platform - T3Q&A· COO· Standalone AI productHelp us kind of understand that long-term strategy and vision
“we have around 20 different roles like this been delivered by May.”
— Amit Zavery, NOW earnings callautonomous workforce, AI specialists - T2Prepared remarks· CEO· Standalone AI product
“AI, data, security and governance are now built into every product and package, not a separate purchase. This is a deliberate break from sidecar AI. We're not bolting intelligence onto disconnected systems. We're combining context with execution on a single platform.”
— William McDermott, NOW earnings callServiceNow AI-native platform - T2Q&A· CEO· Standalone AI productgive us a characterization of the overall enterprise spending environment right now
“The environment is very excited about AI. These language model companies are great companies. They're very exciting. So they're very excited about AI. The problem is they don't exactly know what to do, so they're somewhat confused.”
— William McDermott, NOW earnings call - T2Prepared remarks· CEO· Standalone AI product
“build agent, which gives us developer openness another meaningful unlock developers can build from any integrated developer environment, Claude code, cursor, Codex, Windset and deploy them directly to ServiceNow.”
— William McDermott, NOW earnings callAnthropic, Cursor, OpenAI, Windsurfbuild agent - T2Prepared remarks· CEO· Product-embedded AI
“ServiceNow and Cohesity announced a partnership to deliver agent resilience by combining ServiceNow's AI agent control tower with Cohesity immutable point-in-time data recovery.”
— William McDermott, NOW earnings callCohesityAI agent control tower - T2Q&A· CFO· Customer demand signalwhen are we going to see this acceleration? When are we going to see the benefits of ServiceNow's positioning for this generated AI opportunity
“The signal is clear. Customers are moving past experimentation into full-scale enterprise-wide AI investment.”
— Gina Mastantuono, NOW earnings call - T2Prepared remarks· CEO· Product-embedded AI
“Claude models are also deeply integrated into ServiceNow AI platform for developers and employees.”
— William McDermott, NOW earnings callAnthropicServiceNow AI platform
What management wouldn’t quantify.
Analyst questions where management declined to share a specific number. The pattern of refusals is often as informative as the disclosures.
- Net Revenue Retention (NRR) trend for Q1 2026 was not disclosed; management acknowledged the question but deferred to Financial Analyst Day (May 4).
- Specific revenue contribution from Moveworks/employee works in Q1 was not quantified beyond deal count metrics.
- Veza revenue contribution was described only as 'very small' with no dollar figure.
- Gross margin profile of AI-specific products vs. corporate average was not disclosed.
- Breakdown of the $1.5B Now Assist ACV target by product line or workflow category was not provided.
- Consumption/token revenue as a standalone dollar figure was not disclosed despite 50% of NNACV being non-seat-based.
- Armis standalone revenue run-rate was not disclosed; only the 125bps contribution to ServiceNow subscription revenue growth was given.
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