ServiceNow Raises 2026 AI Revenue Target to $1.5 Billion

ServiceNow is pivoting its enterprise AI strategy from experimental adoption to managed, secure deployment. The company raised its 2026 AI Annual Contract Value (ACV) target to $1.5 billion, up from a previous goal of $1 billion. This shift reflects a corporate focus on agentic AI, which consists of systems capable of autonomous task execution within enterprise workflows.

"We're so focused on helping customers really drive value in this agentic AI world that we find ourselves in," said Gina Mastantuono, CFO and COO of ServiceNow, during a presentation at Citi’s 2026 Global TMT Conference.

Scaling AI Adoption

The company reported a sharp increase in customer engagement, noting that usage of its AI products grew 9x between the first and second quarters of 2024. To sustain this momentum, ServiceNow is emphasizing its AI Control Tower. This management layer is designed to oversee, secure, and measure AI assets across its own platform, third-party integrations, and in-house systems.

This focus on governance is a response to enterprise concerns regarding data integrity and system vulnerabilities. As companies integrate more automated agents into their operations, the demand for centralized oversight has become a primary procurement driver.

"Uniformly across the board over the last several years, it's all been about security and risk," said Mastantuono.

Market Expansion Strategy

ServiceNow is preparing to broaden its market reach. The company plans to release AI-native products specifically tailored for the midmarket and small-to-medium business (SMB) sector in the second half of 2026. This move is an attempt to capture smaller firms that require pre-configured AI governance tools rather than the highly customized deployments typical of the company's large enterprise client base.

What is Agentic AI?

In the context of enterprise software, agentic AI refers to systems that perform multi-step workflows instead of merely generating text or code. Unlike traditional chatbots that require constant human prompting, agentic systems can independently navigate software interfaces, trigger processes, and resolve incidents within a predefined security framework. For companies like ServiceNow, the challenge lies in providing these capabilities while maintaining the strict audit trails and compliance standards required by corporate IT departments.