ServiceNow Aims for $30 Billion with AI Growth

ServiceNow Aims for Spectacular Growth with AI

Gina Mastantuono, President and Chief Financial Officer of ServiceNow, recently unveiled the company's ambitions to double its subscription revenue to reach the $30 billion mark by 2030. This announcement marks a significant milestone in ServiceNow's growth strategy, which focuses on integrating artificial intelligence to transform its operations and offerings.

Now Assist: A Major Growth Lever

ServiceNow's flagship product, Now Assist, has already achieved an impressive annual contract value of $750 million, according to Mastantuono. This figure reflects the company's commitment to integrating AI into its services while assuring investors of solid profit margins. The CFO emphasized that AI represents an opportunity rather than a threat, promising gross margins exceeding 80%.

Ambitious Financial Goals

During a meeting with analysts, Mastantuono clarified that ServiceNow aims to generate over $30 billion in subscription revenue by 2030, compared to the $15.7 billion projected for 2026. The company even anticipates the possibility of exceeding $32 billion, which would require a compound annual growth rate of around 20%. These projections aim to reassure investors about ServiceNow's ability to thrive in an environment where AI plays a central role.

Maintaining Strong Margins Despite AI

ServiceNow also addressed concerns regarding the potential impact of AI on profit margins. The company revealed that AI accounts for less than 10% of its service costs, allowing it to maintain high gross margins. Furthermore, Mastantuono announced a planned expansion of 100 basis points in operational margins and free cash flow by 2027. By 2030, ServiceNow aims to achieve a "Rule of 60+", an ambitious goal that combines revenue growth and free cash flow margins totaling 60%.

Addressing Market Concerns

Shares of many software companies have recently suffered, partly due to fears that generative AI could reduce demand for traditional software. However, ServiceNow seeks to alleviate these concerns by demonstrating that AI can become a growth driver rather than a threat. The company recorded a 22% increase in subscription revenue in the first quarter, reaching $3.67 billion. Despite these results, ServiceNow's stock fell after the earnings report due to concerns about the impact of AI, margins, and delays in contracts caused by the conflict in the Middle East.

Monetizing AI: A Central Focus

A key element of ServiceNow's strategy is the monetization of AI. Mastantuono revealed that Now Assist surpassed $600 million in annual contract value in 2025, reaching $750 million in the first quarter of 2026. The company expects this figure to exceed $1.5 billion by the end of the year and to represent more than 30% of total ACV by 2030.

Increasing Integration of AI in Contracts

Data shows that AI is increasingly integrated into ServiceNow's contracts. In 2025, 91% of net ACV came from clients purchasing five or more products, with a significant increase in multi-product contracts including Now Assist.

Internal Proof of Concept

ServiceNow is also using its own operations to demonstrate the effectiveness of AI. In 2025, the internal implementation of AI generated $500 million in annualized value, including $100 million in savings on operating expenses. These savings are expected to accelerate to exceed $200 million in 2026.