ServiceNow Q3 Report to Test Its 19.5% cRPO Growth Target

ServiceNow will release third-quarter results after U.S. markets close Wednesday, as investors weigh its 19.5% current remaining performance obligations growth target and recent AI contract gains.

For Q3, the company forecasts subscription revenue of $3.975 billion to $3.980 billion, which would be 20.5% above the year-earlier quarter. Its cRPO growth target is 19.5%, rising to 20% on a constant-currency basis. Foreign-exchange movements are expected to reduce the year-over-year Q3 cRPO comparison by about $35 million. The company set this outlook with its Q2 results.

The $4.09 billion analyst consensus estimate is for total revenue, while ServiceNow’s guidance covers subscription revenue alone. ServiceNow recorded $3.987 billion in total revenue and $3.877 billion in subscription revenue in Q2; subscriptions grew 24.5% from a year earlier. The different revenue measures should not be treated as directly comparable.

An analyst estimate puts Q3 cRPO at $13.56 billion. That would imply roughly 19.5% growth from the $11.35 billion ServiceNow recorded for Q3 2025. The estimate is separate from company guidance.

Current remaining performance obligations, or cRPO, measures contracted revenue expected to be recognized over the next 12 months. It offers a view of contracted business scheduled to convert to revenue. ServiceNow ended Q2 with $13.20 billion in cRPO, up 21% year over year.

Strong U.S. federal demand moved some on-premises subscription revenue from Q3 into Q2. The shift helped Q2 subscription revenue exceed the high end of guidance by 150 basis points, alongside stronger net-new annual contract value and a higher-than-expected on-premises mix.

ServiceNow said its AI business surpassed $1 billion in annual contract value during Q2. President and CFO Gina Mastantuono said, “AI net new ACV growth continues to outpace expectations.”

The Q3 earnings call is scheduled for 5 p.m. ET (21:00 UTC) Wednesday, Oct. 28.