ServiceNow reported a 22% year-over-year increase in subscription revenues for Q1 2026, totaling $3.67 billion. The company now serves 630 customers generating over $5 million in annual contract value (ACV), maintaining a 97% renewal rate. Notable growth was driven by demand for AI-driven workflows and acquisitions aimed at enhancing its product offerings.
In comparison, competitors Salesforce and Microsoft are also expanding their enterprise client bases, with Salesforce dominating the CRM and automation space and Microsoft seeing significant growth in AI-powered solutions. ServiceNow’s stock has underperformed, declining 39% year-to-date, compared to an 18.8% rise in the broader tech sector. Despite the challenges, ServiceNow’s future revenue is bolstered by a current remaining performance obligation (cRPO) increase of 22.5%.
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