ServiceNow now stock set a target of more than $30 billion in annual subscription revenue by 2030. Gina Mastantuono told analysts on Monday that the company expects AI monetization to help drive that scale while keeping gross margins above 80% even as usage rises.
The 2030 plan gives investors a clear yardstick after months of worry that generative AI could squeeze software demand and force pricing pressure. ServiceNow is answering that concern with a higher revenue target, a Rule of 60+ goal, and a margin forecast that points to growth without a collapse in profitability.
Mastantuono’s 2030 target
$30 billion is the floor ServiceNow laid out for 2030, with upside to more than $32 billion. Mastantuono said the outlook implies a roughly 20% compound annual growth rate, a pace that would keep the business expanding steadily rather than relying on one surge year. The company also said it aims to reach a Rule of 60+ by 2030.
22% was the subscription revenue growth ServiceNow reported in the first quarter, when revenue reached $3.67 billion. That recent pace helps explain why management is pressing a longer-dated target now: the company is trying to show that current demand can extend into a larger base without sacrificing pricing power or margin discipline.
AI revenue and margin math
$750 million was the annual contract value Now Assist had surpassed as of the first quarter of 2026, after topping $600 million in 2025. ServiceNow expects the product to exceed $1.5 billion by the end of this year and to account for more than 30% of total annual contract value by 2030. That is the clearest sign in the plan that AI is not being treated as a side feature.
Less than 10% of ServiceNow’s cost to serve came from AI reasoning, according to the company, which said it can keep gross margins above 80% as AI usage rises. The company also forecast operating margin and free cash flow margin expansion of 100 basis points in 2027, a step that suggests AI spend does not have to erase operating leverage.
Why Monday mattered
$500 million in annualized value came from ServiceNow’s internal AI deployment in 2025, including $100 million in operating expense savings. The company expects those savings to rise to more than $200 million in 2026. That internal number matters because it gives the external revenue target a second support beam: AI is supposed to add sales and reduce costs at the same time.
91% of ServiceNow’s net new annual contract value in 2025 came from customers buying five or more products. That mix suggests the company still has room to sell more software into existing accounts even as the market debates whether AI will weaken traditional software demand. For investors, the practical read-through is straightforward: if ServiceNow can keep multi-product sales high while Now Assist scales, the 2030 target looks less like a stretch goal and more like a management benchmark to measure execution against.
