According to a recent LinkedIn post from xtype, commentary on ServiceNow’s Q1 2026 earnings call suggests a meaningful upward revision to internal AI revenue expectations for the Now Assist offering. The post describes CEO Bill McDermott indicating that the internal 2026 Now Assist target moved from $1 billion to $1.5 billion, implying a 50% increase in the goal early in the year.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
The post notes that ServiceNow reported subscription revenue of $3.671 billion, representing 22% year-over-year growth, and highlights that Now Assist customers spending over $1 million grew more than 130% year over year. It also points to a “beat-and-raise” quarter, with additional details that Moveworks reportedly closed more deals in Q1 than in all of 2025 and that notable deals with Armis and Veza closed earlier than expected.
According to the LinkedIn recap, roughly 50% of ServiceNow’s net new business is now based on non-seat pricing structures, indicating an ongoing shift away from traditional per-seat models. The post suggests that new capabilities such as Autonomous Workforce tools, EmployeeWorks flows, Build Agent skills, and Sales CRM workflows are expected to move into production, potentially expanding AI-driven use cases on the platform.
The commentary further implies that these product and revenue dynamics may increase demands on ServiceNow platform teams, which may not be receiving headcount increases in line with revenue growth. For investors, the described trends in AI-related revenue targets, large-customer adoption, and evolving pricing models could signal accelerating monetization of AI features, while also raising execution and scalability questions for ServiceNow and its ecosystem partners such as xtype.