Quarterly guidance

Subscription revenue
$4.245 billion to $4.255 billion.
Operating margin
32%.
cRPO growth
18.5% on a constant currency basis.

Annual guidance

Subscription revenue
Raised to $15.785 billion at the midpoint.
Free cash flow margin
Raised to 36%.
Subscription gross margin
Expected to be 81%.
Operating margin
Expected to be 31.5%.

Outlook

AI Monetization
Management expects AI to be 30% of ACV by 2030 and continues to see rapid adoption of agentic AI.
Business Model
The company is activating a hybrid business model shifting more toward consumption-based pricing.
Market Position
ServiceNow views itself as the execution layer for the entire AI economy, leveraging its Super Intelligence Control Tower.
Capital Allocation
The company is reducing CapEx spend while expanding free cash flow margins.
Customer Demand
Demand remains robust, with 19 deals over $5 million in net new ACV in Q3.