ServiceNow beats Q1 2026 guidance as AI deals accelerate (and outcome-based pricing? Zavery isn't buying it)

ServiceNow has beaten its guidance once again on the release of its Q1 2026 earnings, with AI fueling much of the growth. Subscription revenues came in at $3.671 billion, up twenty-two per cent year-on-year (nineteen per cent in constant currency). Total revenues were $3.77 billion. Current remaining performance obligations reached $12.64 billion, up twenty-two-and-a-half per cent, and the company ended the quarter with 630 customers spending more than $5 million in annual contract value, up around twenty-two per cent year-on-year.

The results suggest an expansion in enterprise appetite for AI adoption and spend, with buyers resonating with ServiceNow's case that governed, orchestrated agentic AI is a platform problem worth paying to solve. Notably, Now Assist customers spending over $1 million in annual contract value grew over 130 per cent year-on-year. We spoke to Amit Zavery, President, Chief Product Officer and Chief Operating Officer, ahead of the ...