ServiceNow eyes US$1 billion revenue for AI product by 2026
[NEW YORK] ServiceNow said its flagship artificial intelligence (AI) software product will hit US$1 billion in annual contracted business by next year.
The new 2026 guidance for the generative AI product, dubbed Now Assist, was given on Monday (May 5) by chief financial officer Gina Mastantuono during the company's annual conference. Currently, the product has more than US$250 million in annual contract value, which is the amount customers have agreed to pay for it each year, she added.
ServiceNow makes software applications that help companies organise and automate their personnel and information technology operations.
Like many peers, ServiceNow has spent the last two years baking generative AI features into its products. It offers a more expensive subscription tier with those tools, which carry out tasks based on prompts from users.
The stock has jumped 20 per cent since Apr 23, when the Santa Clara, California-based company gave a forecast for sales growth in the current quarter that topped analysts' estimates, suggesting demand for its software remains resilient amid uncertainty about the economic effects of escalating US tariffs.
Some customers are spending 60 per cent more on ServiceNow products after upgrading for access to the AI features, Mastantuono said.
'The agentic AI capabilities are compelling and these double upgrades make for some really great math,' she said.
Analysts project ServiceNow's annual revenue will top US$13 billion this year. BLOOMBERG
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