{"id":468864,"date":"2026-05-05T02:36:17","date_gmt":"2026-05-05T02:36:17","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/468864\/"},"modified":"2026-05-05T02:36:17","modified_gmt":"2026-05-05T02:36:17","slug":"servicenow-targets-over-30-billion-in-subscription-revenue-by-2030","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/468864\/","title":{"rendered":"ServiceNow Targets Over $30 Billion in Subscription Revenue by 2030"},"content":{"rendered":"

ServiceNow<\/a> made a more forceful case to investors that it can thrive in the age of AI<\/a>, outlining long-term financial targets and early signs of traction on Monday.<\/p>\n

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During a meeting with analysts, ServiceNow President and CFO Gina Mastantuono<\/a> said the company is targeting more than $30 billion in subscription revenue by 2030, up from an expected $15.7 billion in 2026. There’s potential upside to more than $32 billion, implying a roughly 20% compound annual growth rate, the CFO added.<\/p>\n

ServiceNow also pushed back on concerns that AI could erode profit margins. The company said AI reasoning accounts for less than 10% of its cost to serve, helping it maintain gross margins above 80% even as AI usage rises.<\/p>\n

Mastantuono also forecast operating margin and free cash flow margin expansion of 100 basis points in 2027. By 2030, ServiceNow aims to reach a “Rule of 60+,” a high bar that combines revenue growth and free cash flow margins that total 60%.<\/p>\n

Shares of many software stocks have plunged in the past year on concern that generative AI tools could reduce demand for software<\/a> and help customers create their own software to replace traditional offerings. The new forecasts from ServiceNow are aimed at reassuring investors that AI is not a threat to its business and could instead become a major growth driver.<\/p>\n

The update comes after a solid first quarter from ServiceNow in which subscription revenue rose 22% year over year to $3.67 billion. Still, the stock fell following that earnings report on concerns about AI’s impact, margins, and deal delays due to the Middle East conflict.<\/p>\n

A central piece of ServiceNow’s new pitch is AI monetization. On Monday, the CFO said its Now Assist product, a flagship AI offering, surpassed $600 million in annual contract value (ACV) in 2025 and has exceeded $750 million as of the first quarter of 2026. The company expects that figure to top $1.5 billion by the end of this year and account for more than 30% of total ACV by 2030.<\/p>\n

The data suggests AI is increasingly embedded in larger ServiceNow deals. In 2025, 91% of net new ACV came from customers buying five or more products, with a sharp increase in multi-product deals that include Now Assist.<\/p>\n

ServiceNow also uses its own operations as proof of concept. Its internal AI deployment generated $500 million in annualized value in 2025, including $100 million in operating expense savings. Those savings are expected to accelerate to more than $200 million in 2026.<\/p>\n

Sign up for BI’s Tech Memo newsletter <\/strong>here<\/a>. Reach out to me via email at <\/strong>abarr@businessinsider.com<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"ServiceNow made a more forceful case to investors that it can thrive in the age of AI, outlining…\n","protected":false},"author":2,"featured_media":468865,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[76115,291,205740,289,290,205741,30041,2006,4737,19454,18,17503,19,1094,17,8959,9647,22138,864,205742,197880,82],"class_list":{"0":"post-468864","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-acv","9":"tag-ai","10":"tag-ai-bet","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-assist-product","14":"tag-cfo","15":"tag-company","16":"tag-concern","17":"tag-customer","18":"tag-eire","19":"tag-gross-margin","20":"tag-ie","21":"tag-investor","22":"tag-ireland","23":"tag-monday","24":"tag-past-year","25":"tag-servicenow","26":"tag-software","27":"tag-solid-first-quarter","28":"tag-subscription-revenue","29":"tag-technology"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116519645055996730","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/468864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=468864"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/468864\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/468865"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=468864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=468864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=468864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}