ServiceNow raises cRPO outlook as AI monetization gains focus

what happened

TradingView reports that ServiceNow (NYSE: NOW) is seeing strong enterprise momentum. Current remaining performance obligations, or cRPO, increased 22% year over year on a constant-currency basis, and the company guided for fourth-quarter cRPO growth of about 19.5%. Management described the outlook as conservative, leaving room for upside comparable to the roughly 200-basis-point beat in Q2.

Investors are watching AI monetization and enterprise bookings as potential drivers of demand for infrastructure software. ServiceNow said the City of Raleigh deployed its Ral‑E and Alli AI agents in the IT Service Desk. The rollout cut IT desk costs by 66%, produced 98% first-contact routing accuracy and enabled autonomous resolution of about 50% of requests.

In August 2026, ServiceNow expanded its Bundesliga CRM, bringing seven digital channels together. First-contact resolution reached 89%, while fan case volume dropped by more than 50% through an automated knowledge base and Now Assist. Following earlier earnings and guidance, Stifel raised its target while maintaining a Buy rating; UBS lifted its target from $110 to $150 and remained Neutral. ServiceNow will release third-quarter 2026 results after the market closes on Oct. 28, followed by a conference call and webcast. An audio replay is expected about two hours later.

why it matters

The figures put attention on enterprise contract growth, AI adoption and bookings before the Oct. 28 release. The results may help markets assess whether software demand is recovering and how quickly AI features are being monetized.

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