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ServiceNow Beats Q3 Revenue, Raises AI Contract Target

By Drooid · Oct 29, 2026 · How we work

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ServiceNow posted Q3 revenue of $4.106 billion, topping the $4.095 billion forecast.
Adjusted operating margin reached 32.5%, exceeding the 31.2% expectation.
Shares dropped about 18% in after-hours trading to roughly $123.
CFO Gina Mastantuono said AI generated over $1 billion annualized efficiency gains, enabling a smaller headcount.
AI contract-value target rose to $1.7 billion, up from $1 billion earlier this year.

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ServiceNow posted Q3 revenue of $4.106 billion, topping the $4.095 billion forecast.
Adjusted operating margin reached 32.5%, exceeding the 31.2% expectation.
Shares dropped about 18% in after-hours trading to roughly $123.
CFO Gina Mastantuono said AI generated over $1 billion annualized efficiency gains, enabling a smaller headcount.
AI contract-value target rose to $1.7 billion, up from $1 billion earlier this year.