ServiceNow continues its vision to transform AI for its enterprise customers after a strong earnings report.
On Wednesday, the enterprise giant released its quarterly earnings report, reaching a total revenue of $3.407BN, a 22% increase.
Away from the finances, the company also used the call to outline its commitment to expanding its AI-driven and CRM solutions.
Transforming Solutions
As part of its plan to bolster AI across enterprises, ServiceNow has emphasized its goals to transform AI agents, customer relationship management, and return on investment results for customers.
AI Agents
During the call, ServiceNow execs discussed the company’s aim to transform AI for its customer enterprises through its real-time AI control tower, to monitor, track and govern its use.
By using its configuration management leadership to help with AI governance under one system, enterprises can simplify their AI management and integration process to deliver faster ROI.
Regarding its agents, ServiceNow has created its workflow ‘road map’ for them to function effectively across an enterprise and a tech stack, going from a simple chatbot to a complex AI tool.
This also includes voice, text, image and data options to allow customers to unify their AI experience.
The company expressed its vision for a fully hybrid workflow future, with human and AI agents working together to solve and complete customer issues, tasks and actions.
In fact, the company reported a sharp increase in activity for its AI control tower in Q3, with more than 4 times the traffic volume quarter-over-quarter.
This also included a 55x increase in AI Agent Assist consumption in the past five months.
In conversation with CX Today, Simon Harrison, Analyst and Executive Partner at Actionary, explained how ServiceNow positions its agentic AI as a reliable automation.
He said, “ServiceNow’s approach to Agentic AI is pragmatic and brings guardrails, governance, and visibility to what can otherwise be chaotic experimentation with AI agents.
“The company’s strength lies in how its highly usable approach is anchored in a mature workflow and data model, making its version of Agentic AI more controllable, measurable, and enterprise-ready than most.”
With AI turning into the new user interface, ServiceNow introduced AI experience earlier in Q3, creating AI assistants with a unified interface for a more seamless experience.
This move from traditional UI avoids the repeated manual research through workflow engines and isolated agents by replacing them with one interface for all actions.
CRM Investment Expansion
To revamp the customer service market, ServiceNow aims to drive higher growth and loyalty by turning its CRM into an AI-first system of action.
By reconstructing CRM to center on automation, it can unify enterprise departments to drive actionable outcomes as well as data tracking.
This means that by delivering more specific, automated capabilities, the integrated AI can understand customer context to resolve issues.
This is used in customer service, where AI agents can resolve issues of consumer dissatisfaction, flag risk cases, and remind teams to respond before SLAs are missed.
It also allows agent-to-agent orchestration to deliver faster, qualitative results.
ROI
As pointed out in the earnings call, ROI is often a failure for tech enterprises due to its poor integration.
However, ServiceNow’s AI platform changes this outcome by working throughout departments and tech stacks.
This speeds up enterprise deployment, automation, and payback times, allowing investment outcomes to arrive within quarters, rather than years.
The AI agents and control towers also provide cost benefits for ROI with faster resolutions.
Customer Results
ServiceNow’s third quarter has also benefited from its enterprise customer base, with 553 customers each achieving at least $5MN in ACV.
This was followed by the group of customers who had generated over $50MN increasing by 20% year-over-year.
The company has also teased a partnership expansion plan with CcaaS giant, Genesys to focus on unification for agent-to-agentic orchestration between their two respective AI-powered platforms.
This will allow both companies’ customers to use these systems under one environment to deliver faster, autonomous customer service.
Enterprise customers are also seeing their personal results from ServiceNow’s efforts this quarter.
In one instance, the US Federal boosted strong results in Q3 after signing a OneGov agreement with ServiceNow, beating ACV expectations.
This was contributed to by ServiceNow’s Now Assist AI’s agency conversion and their AI control tower’s success in governance outcomes, resulting in strong ROI payoffs.
With this deal, ServiceNow can provide government-wide agencies with its products including its AI and workflow solutions, allowing more agencies to use ServiceNow due to faster implementation.
In return, ServiceNow has estimated to save the federal government billions over the coming five years, by boosting its overall efficiency levels by 30%.
Key Earnings Results
Below is a breakdown of some of ServiceNow’s key financial results for Q3 2025:
- In its third quarter, ServiceNow outmatches its earnings expectations, with an increase in total revenue of over $3.4BN.
- Its top earning result, subscription revenues, saw a quarterly earning result of $3.299BN, a 21.5% year-on-year growth
- The company also expects to reach its new AI revenue target of $1BN in 2026, after already exceeding its $500MN target for the year
