NOW ▼ -20.2% - ServiceNow, Inc. $NOW down in ah on slowdown in expected contract growth, despite accelerating AI adoption. Q3 cRPO grew 21% in constant currency, but ServiceNow expects growth to slow to 18.5% in Q4, below Street's 19.7% estimate. cRPO measures contracted revenue expected to be recognized over the next 12 months, making it an important indicator of future growth. Management explained several factors behind the weaker outlook: • Early renewals accounted for roughly half of Q3's cRPO beat, pulling some deals forward from Q4. • More on-premise government contracts are creating a 25-basis-point headwind to Q4 cRPO growth. • AI deployment support is shifting roughly 50 basis points of Q4 subscription growth into professional services. Meanwhile, AI momentum remains strong: • AI net-new ACV grew 65% YoY • Agentic AI consumption rose 13x YoY • FY26 AI ACV target raised to $1.7B from $1.5B • FY26 free cash flow margin target raised to 36% Despite this momentum, ServiceNow raised its full-year subscription revenue outlook by just $15M at the midpoint. Management argues that timing and accounting effects explain part of the slowdown. 28-OCT-2026 06:11 PM ET