# ServiceNow Stock Q3 2026: Revenue Up 20.5% as the AI Target Rises to $1.7bn
> ServiceNow stock Q3 2026: revenue rose 20.5% to $4.11bn, cRPO rose to $13.65bn and the AI ACV target rose to $1.7bn, but the shares fell 27%.

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## Facts
- Ticker: NOW
- QSILabs fair value: $74.66 USD
- Price: $106.01 (as of 2026-11-02)
- As of: Q3 2026 results (quarter ended 2026-09-30, reported 2026-10-28); balance sheet from Form 10-Q for the quarter ended 2026-09-30; price as of 2026-11-02 close
- Fiscal period: Q3 2026 (July-September 2026)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/servicenow-stock-q3-2026-earnings-ai-crpo/

## Short answer
ServiceNow stock Q3 2026 is a story of strong results and a weak share price. ServiceNow reported revenue of $4,106m for the three months to 30 September 2026, up 20.5%, beat the top of its own guidance for subscription revenue, current remaining performance obligations (cRPO) and operating margin, and raised its target for annual contract value (ACV) from AI products to $1.7bn by the end of 2026. But it guided to cRPO growth of 18.5% in constant currency for the fourth quarter, against 21% in the third, and the shares fell 27.0% the next day. GAAP operating income fell 32.7% to $385m because of acquisition amortisation, stock-based pay and severance. Our discounted cash flow model values the shares at $74.66, against a $106.01 close on 2 November 2026; that gap rests mostly on an 11.23% cost of capital and on treating stock-based pay as a cost, so we show below how far it moves when you change those and the other inputs.

## Key takeaways
- Revenue grew 20.5%. Total revenue was $4,106m and subscription revenue $3,988m, up 20.9%, or 20.5% in constant currency, 50 basis points above the top of ServiceNow's guidance.
- Backlog grew too. cRPO, contracted revenue due in the next 12 months, was $13.65bn, up 20.5%, or 21% in constant currency. Total remaining performance obligations were $29.7bn, up 22%.
- AI target raised again. ServiceNow now expects AI ACV of $1.7bn by the end of 2026, against $1bn at the start of the year. AI net new ACV grew 65% in the quarter.
- GAAP profit fell. GAAP operating income was $385m, down from $572m, a margin of 9.5%. Non-GAAP operating income rose 17.4% to $1,338m, a margin of 32.5%, 150 basis points above guidance.
- The Q4 cRPO guide hit the shares. ServiceNow expects cRPO growth of 18.5% in constant currency in the fourth quarter. The shares fell from $150.13 to $109.67 on 29 October.
- Acquisitions changed the balance sheet. ServiceNow bought Armis for about $7.6bn and Veza for about $1.2bn in 2026, and debt rose to $7.52bn from $1.49bn at the end of 2025.
- Our value: $74.66 a share, against a $106.01 close on 2 November 2026. A two-stage cross-check gives $74.77; with the 10.50% US software cost of capital the model gives $81.85. Analysts' average target is $154.69.
- What to watch. Whether cRPO growth recovers in 2027, AI consumption turning into revenue, the integration of Armis and Veza, and stock-based pay, which ServiceNow aims to cut to below 10% of revenue by 2029.

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