ServiceNow reported that its AI annual contract value (ACV) exceeded $1 billion in Q2 2026, with net new ACV for AI growing over 40% sequentially. The company aims to surpass its AI ACV target of $1.5 billion by the end of 2026, driven by a ninefold increase in customers using Agentic AI and a fivefold rise in deals that include five or more of its AI products year over year. Currently, ServiceNow is on track to have AI contribute 30% of its ACV by 2030.
In terms of adoption, over 40 customers are utilizing Level 1 ITSM AI specialists, which can resolve around 80-85% of service requests autonomously. The company is also seeing accelerated demand for related products, with EmployeeWorks deal volume increasing by more than 150% quarter over quarter. Meanwhile, ServiceNow’s stock has declined by 17.9% year-to-date, contrasting with the broader tech sector’s growth of 15.4%.
Competitively, Microsoft and Salesforce are intensifying pressure on ServiceNow, with Microsoft reporting over 100,000 Foundry customers and over 30 million seats for its Copilot software. Salesforce’s Agentforce ARR surpassed $1.5 billion, indicating strong advancements in AI monetization.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
