ServiceNow has revealed that AI adoption is now serving as the primary driver for the company’s growth and customer demand.
In its latest quarterly earnings call, the AI control tower provider announced that its AI services had driven a surge in customer demand and financial growth, despite making several acquisitions in December.
This has allowed ServiceNow to take one step closer to becoming the “AI-defining enterprise software of the twenty-first century.”
Bill McDermott, CEO at ServiceNow, argues that the AI agent trend will be large, with its technology expected to play a central role in both creating and managing those agents.
“IDC estimates there will be 2,200,000,000 AI agents in the world by 2030,” he said.
“Millions of those will be built on the ServiceNow platform. Whatever isn’t built on our platform will be governed and secured by our AI control tower.”
AI-Powered Solutions
ServiceNow expanded its AI Control Tower in Q4 with new capabilities that enable customer enterprises to comprehend the value from any AI asset.
This exceeded quarterly targets by more than 4 times in 2025, with the AI Control Tower deal volume nearly tripling in Q4.
This also includes enhanced data privacy controls and restructured workflows to enable a consistent, governed AI approach.
Q4 also saw the rapid growth of its product Now Assist, ServiceNow’s AI-driven solution suite for workflow automation.
This product drew large efficiency gains and a strategic shift toward consumption-based pricing, having passed $600MN in annual contract value (ACV), doubling year-over-year.
Having also introduced Assist Packs to sell AI-based workflow automation add ons have allowed ServiceNow to monetize AI through consumption rather than just traditional seats.
Amit Zavery, President, CPO, and COO at ServiceNow, highlights the network effect on AI usage, with successful implementations driving broader deployment, and prebuilt assist packs accelerating this growth across multiple processes.
“That adoption and that consumption is starting to happen very, very fast, especially now that they’re using agentic use cases and workflows to run the business,” he said.
“And once they start using one, they start using many more. That’s where the assist packs are starting to come in.”
Partnerships and Acquisitions
ServiceNow also revealed the success of its acquisitions of Veza and Moveworks, and its ongoing plan to acquire Armis, explaining how it expanded its capabilities in integrated security and AI governance.
McDermott explained how these acquisitions will allow ServiceNow to continue establishing its position in the agentic AI market.
“Our announced plans to acquire VESA and ARMS happened in rapid succession because this assembles three critical layers for enterprises to operate securely in an agentic AI world: visibility, identity, and orchestration.
“With our fast-growing billion-plus dollar CACV security and risk business, the timing to expand the opportunity could not be better.”
Having acquired Veza in December, ServiceNow has been able to expand its security and identity governance capabilities as more enterprises adopt cloud and autonomous AI agents.
The company also completed its acquisition of Moveworks later that month, bringing customer enterprises front-end AI assistant and enterprise search technology that integrates seamlessly with its agentic AI and workflow capabilities.
The acquisition had reportedly delivered 1% to the current remaining performance obligations (CRPO) during its limited time this quarter.
Furthermore, ServiceNow has reportedly been in discussions to acquire Armis for its security and risk management offerings, positioning itself in the next phase of cybersecurity consolidation and relevance to customer experience strategies.
McDermott continued: “Armis is already protecting over 40% of the Fortune 100, precisely because they’ve cracked the visibility challenge.”
These will allow ServiceNow to grow into this current quarter with significantly expanded security management for its AI offerings.
Zavery went on to explain VEZA and Armis’s usage within the platform:
“We have been integrating those products using a technology called universal agentic network,” he said.
“[It] is built on MCP and workflow data fabric, making it easy for us to really have processes as well as a lot of the domain expertise which come from Veza and Armis.”
ServiceNow had also participated in multiple strategic ecosystem partnerships, focusing on AI integration and go-to market cooperation.
In November, ServiceNow and NTT DATA expanded their partnership to accelerate AI-led transformation for global enterprises.
Earlier this month, ServiceNow also partnered with OpenAI to give customers direct access to frontier model capabilities and custom AI solutions.
By providing customers with intelligent models, ServiceNow positions itself as a central orchestration layer for enterprises.
Customer Growth
ServiceNow demonstrated strong customer growth in Q4, maintaining a 98% renewal rate, and a surge in monthly active users increasing by 25% year-over-year.
Activity on the platform also rose by over 33%, with the number of workflows growing to 80 billion and transactions growing to 6.4 trillion.
This was seen prominently in its emerging products, such as Now Assist, Workflow Data Fabric, and CPQ, which all outperformed quarterly expectations.
ServiceNow also saw growth in its cohort of high-value enterprise clients, having closed 244 valued at over 1MN in net new ACV during the quarter.
Furthermore, customers who contributed $20MN or more increased by 30% year over year.
ServiceNow Key Earnings Results
ServiceNow achieved better-than-expected results during Q4, having seen strong results from customers about its AI offerings.
- Total revenue reached $3.5BN, representing 20.5% year-over-year growth
- Subscription revenue rose to $3.4BN in Q4 2025, representing 21% year-over-year growth
- It’s AI product Now Assist net new ACV more than doubled year-over-year
- As of its fourth quarter, ServiceNow’s current remaining performance obligations were $12.85BN, representing 25% year-over-year growth
