ServiceNow raised its 2026 artificial intelligence revenue target to $1.5 billion, up 50% from an earlier $1 billion forecast, as its Now Assist AI platform gains significant traction among enterprise customers, according to the company’s Q1 2026 earnings announcement on April 22.
The higher target reflects accelerating adoption of Now Assist across ServiceNow’s customer base. Customers spending over $1 million in annual contract value on the AI product grew more than 130% year-over-year in the first quarter, a metric that underscores the scale of enterprise commitment to the platform.
ServiceNow entered Q1 2026 with Now Assist at roughly $750 million in annual contract value, according to reporting by Fortune, positioning the company to reach the newly raised $1.5 billion target by year-end if growth momentum continues. The 50% increase in guidance signals management confidence that AI is moving from pilot deployments to production use across large organizations.
The AI revenue acceleration comes as ServiceNow delivered broader-based growth. The company reported subscription revenues of $3.671 billion in Q1, representing 22% year-over-year growth. Total revenues reached $3.770 billion, also up 22% year-over-year. ServiceNow raised its full-year 2026 subscription revenue guidance to between $15.735 billion and $15.775 billion, reflecting 20.5% to 21% growth in constant currency.
Now Assist is ServiceNow’s generative AI suite, built into the platform to help enterprises automate workflows, accelerate decision-making, and govern agentic AI across their operations. Strong Now Assist adoption is driving demand for additional AI products and larger customer investments, according to Yahoo Finance reporting on the earnings results.
The scale of high-value customer growth—the 130% increase in million-dollar-plus accounts—suggests enterprises are moving beyond evaluating AI as an experimental tool. When comparable enterprise software vendors have launched AI capabilities in prior years, early adoption metrics have typically shown strong initial interest, though sustained revenue growth at scale has often taken longer to materialize. ServiceNow’s ability to convert this customer momentum into the projected $1.5 billion run rate will be closely watched by investors assessing how broadly AI monetization is spreading across the enterprise software sector.
ServiceNow also reported that deals including three or more Now Assist products grew nearly 70% year-over-year in Q1, indicating that customers are expanding their use of the AI suite across multiple business functions. This multi-product adoption pattern has historically been a leading indicator of customer stickiness and lifetime value in enterprise software.
The company’s next quarterly earnings announcement is scheduled for July 22, 2026, when investors will gain further insight into whether the AI revenue acceleration is sustaining or moderating.
Sources
- ServiceNow Investor Relations — Q1 2026 earnings release with official AI revenue target raise to $1.5B and Now Assist customer growth metrics
- Yahoo Finance — Analysis of strong Now Assist adoption driving broader AI deployments and customer investments
- Fortune — Reporting on Now Assist ACV progression from $600M in Q4 2025 to $750M entering Q1 2026
- Seeking Alpha — Coverage of the 130% year-over-year growth in Now Assist customers spending over $1M in ACV
