ServiceNow’s chief executive says artificial intelligence is not a side project, it is “re-orienting the global economy.” The claim lands as the workflow software giant posts stronger than expected third-quarter numbers, raises guidance, and approves a five-for-one stock split, underscoring how quickly enterprise buyers are shifting budgets to AI tools that promise measurable productivity.  

ServiceNow reported third-quarter 2025 subscription revenue of about $3.30 billion, up roughly 21 to 22 percent year on year, with current remaining performance obligations at $11.35 billion. Management highlighted strong demand for AI features like Now Assist, Workflow Data Fabric, and its in-platform database RaptorDB. The board approved a five-for-one stock split and the company lifted its outlook, moves that followed several seven- and eight-figure AI-related deals across industries.

In interviews and public remarks this year, CEO Bill McDermott has framed AI as the biggest enterprise technology shift in decades, arguing that companies want one platform that spans functions rather than siloed systems. He has also pushed a narrative of “put AI to work for people,” positioning ServiceNow’s agentic AI as a practical route to lower costs and faster execution. 

Analysis, here’s what most people are missing

Most coverage focuses on the headline growth and the sound bites. The more important signal is where the growth is coming from and what that implies for enterprise software’s structure.

1. AI pull is attached to core workflows, not labs. The wins ServiceNow cites are embedded in IT service, HR, operations, and customer workflows, which already control recurring budgets. That matters because tools tethered to daily tickets and cases get defended in budget reviews, even in cost cutting cycles. It also explains why cRPO and million-dollar deal counts are rising alongside AI attach rates. 

2. Platform consolidation is the competitive weapon. McDermott’s critique of legacy, multi-cloud sprawl is not just positioning. If buyers can collapse five tools into one platform with shared data and policy, AI agents can act across domains without brittle handoffs. That is the difference between AI demos and durable ROI, and it tilts the field toward vendors that own workflow context at scale. 

3. Stock split is a sentiment amplifier, not a strategy. The five-for-one split broadens access and can fuel incremental retail interest. It does not change cash flows. The real driver to watch is whether AI modules keep converting into large renewals and net new ACV at today’s pace through 2026. 

4. Execution risk remains, but the demand picture is clearer. Earlier in the year, investors punished the name on concerns about decelerating subscription growth and macro exposure. The Q3 beat and raised outlook suggest those fears have eased, supported by improving attach and renewal metrics. The tension to monitor is whether AI projects move from pilot to production fast enough to sustain 20 percent plus subscription growth in 2026. 

Implications

• For CIOs and COOs: Expect growing pressure to quantify time savings, not just outputs. ServiceNow’s CFO says internal AI has already cut seller prep time and engineering cycles. Vendors will increasingly lead with time-to-value proofs, measured in minutes saved per workflow, then price against that value. Build scorecards now. 

• For rival platforms: CRM, IT operations, and HR suites face renewed platform consolidation risk. If autonomous agents can traverse functions on a single data model, stand-alone modules will need deep moats or fade into features. Watch how Salesforce, Oracle, and Microsoft counter with cross-domain agent frameworks. 

• For investors: The setup into 2026 hinges on two levers, AI ACV run-rate and large-deal velocity. Management says AI products are tracking toward a multihundred-million ACV contribution this year with sights on a billion by 2026. Sustained growth here would validate the platform thesis and keep multiples supported, even if macro choppiness persists. 

Takeaway

The real story is not that ServiceNow beat estimates, it is that AI is finally attaching to mission-critical workflows at scale. If that continues, the next phase of enterprise software will be defined by platforms that can prove time savings across functions on one data model, not by point solutions with clever demos. ServiceNow has put down an early marker that others will now have to match.