ServiceNow Q4 Results Reinforce Enterprise AI Driving Business Impact

ServiceNow outperformed its Q4 2025 guidance as enterprise AI adoption drove growth, margin, and cash flow. Now Assist ACV surpassed $600M and tracked toward a $1B run rate with broad customer commitments.

Now Assist is ServiceNow’s generative‑AI assistant that is built directly into the ServiceNow platform. The impact of AI-powered workflows for ServiceNow customers is speeding resolution times, improving employee productivity, and allowing customers to reallocate resources toward innovation rather than firefighting.

ServiceNow has announced that large deals have tripled quarter-over-quarter. Management commentary and deal mix suggest customer adoption is clearly moving beyond pilot projects into broad deployments, setting the stage for an inflection point in how enterprises operate.

ServiceNow’s strategy through recent acquisitions such as Moveworks, Armis, and Veza deepen ServiceNow’s addressable market across IT, security, operational technology, and identity, broadening workflow coverage and embedding AI into more facets of the business.

ServiceNow’s decision to expand partnerships with Anthropic, OpenAI, Microsoft, and additional providers highlights its recognition that customers want flexibility in their AI stack. Rather than standing apart from the market, the company is joining a broader industry trend toward bring‑your‑own‑model approaches, enabling organizations to integrate and govern models of their choice through the AI Control Tower.

Beyond the numbers, the market narrative for ServiceNow is shifting: practical and governed AI, embedded into the fabric of everyday work, is now visible in the topline results and in customer commitment. AI is moving from the fringes to the core of the enterprise tech stack, and ServiceNow’s actions demonstrate a playbook for infusing intelligence across functions.

Our Take

ServiceNow’s results highlight rising interest in workflow‑embedded AI, but CIOs and CTOs should calibrate expectations. The organizations seeing meaningful returns are the ones with disciplined processes, clean operational data, and strong platform governance. Without that foundation, AI initiatives tend to stall, much like customer service chatbot projects that underperform when knowledge management is inconsistent. Leaders should expect slower time‑to‑value, uneven automation outcomes, and heavier dependence on vendor services if their fundamentals aren’t in place.

The expansion of Now Assist and the recent acquisitions signal broader platform consolidation, yet integration across IT, security, OT, and identity will vary in readiness. Buyers should validate real interoperability and assess where additional tooling or redesign will be required. Governance remains a central risk area. Tools like AI Control Tower help, but enterprises may still need internal controls, audit processes, and cross‑functional oversight to scale AI safely.

AI‑driven revenue growth across the sector signals a likely shift away from traditional per‑user‑per‑month licensing and toward consumption- or workflow‑based pricing. As vendors restructure monetization around model usage, case volumes, and workflow execution, long‑term costs may become less predictable. Technology leaders should model multiple scenarios that account for AI licensing, per‑transaction or per‑workflow fees, data processing consumption, and projected case load growth. Assessing TCO will require more than counting licensed users; it will require a detailed understanding of anticipated interaction volumes and how automation changes demand patterns over time.

Overall, AI‑enabled workflow automation is accelerating, but outcomes will vary significantly by organizational readiness. CIOs and CTOs should move deliberately, ensuring they have governance, process clarity, and cost controls in place before expanding platform‑level AI commitments.

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