Preview|NOW 3Q26: Solid Checks and a Healthy 2027 Outlook, AICT Adoption Starts to Take Shape

Summary

We revisited three ServiceNow channel experts this quarter and spoke with customers in insurance and healthcare. Feedback remains solid, with two channels modestly ahead of their 3Q plans and the third tracking within expectations. Renewals, AI tier upgrades and module expansion support a healthy 4Q and 2027 outlook, extending our view from last quarter. On AI, AICT is moving beyond discussions into discovery, governance workflows and live-environment pilots. The strategic opportunity is becoming more tangible and could become a more meaningful revenue driver in 2027, despite its limited near-term contribution. NOW is not necessarily the outright governance winner, but success with AICT could make its role in the AI era more critical. Now Assist sales and deployment are improving; incremental consumption and customer ROI remain more uneven. We expect a 150-200bps beat on 3Q cRPO growth is reasonable, while 4Q cRPO growth guidance is likely to be in line with buyside expectations at around 20%.

3Q26 Checks Modestly Ahead Overall with a Healthy 4Q and 2027 Outlook

Last quarter, we expected new pricing, early renewals and Prime upgrades to support 2H growth. This quarter’s follow-up largely supports that view. Two channels beat their earlier growth expectations, while the North American channel remained steady. The drivers are broadening from pricing and renewal timing to module expansion and implementation of purchased AI capabilities. Our checks continue to support a solid 3Q with room for a modest beat, followed by healthy demand into 4Q and 2027.

North America Channel Expert A

• 3Q26 growth: preliminary growth of 21.8–22% yoy, slightly above 2Q’s 21.6–21.8%. The expert described the result as within its own plan, rather than a beat.