ServiceNow Inc. (NYSE:NOW) on Monday outlined a path to more than $30 billion in annual subscription revenue by 2030, positioning artificial intelligence as a key driver of growth and profitability.
AI Growth Strategy Gains Momentum
During a meeting with analysts, President and CFO Gina Mastantuono said the company expects subscription revenue to exceed $30 billion by 2030, up from an estimated $15.7 billion in 2026, implying roughly 20% annual growth, reported Business Insider.
She added that there is potential upside to more than $32 billion.
The company also pushed back on concerns that AI could pressure margins, saying AI-related reasoning makes up less than 10% of its cost to serve.
It added that it expects to maintain gross margins above 80% even as AI adoption increases.
ServiceNow forecast operating margin and free cash flow margin expansion of 100 basis points in 2027 and reiterated its goal of achieving a "Rule of 60+" by 2030, combining revenue growth and free cash flow margins.
AI monetization remains central to the strategy. The company said its Now Assist product surpassed $600 million in annual contract value in 2025 and exceeded $750 million in the first quarter of 2026.
Mastantuono said the figure is expected to more than double to over $1.5 billion by the end of the year.
AI Reshapes Software
Earlier, Amazon.com Inc. (NASDAQ:AMZN) launched Connect Talent, an AI-powered hiring platform that automated candidate screening and interviews for large-scale recruitment, alongside a new "humorphism" design approach focused on aligning AI with human workflows.
Morgan Stanley webinar with AlphaSense argued that AI was not replacing software but enhancing it.
Analyst Keith Weiss called fears of displacement a "definitional error," though he noted generative AI was disrupting areas like stock photography.
He estimated AI could add $400 billion to enterprise software by 2028.
Separately, investor Eric Jackson warned of continued pressure on software stocks, arguing that executive optimism around AI was masking deeper business weaknesses that could worsen over the coming months.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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