Highlights

  • ServiceNow's AI Passport gives agents a signed record of their authority, connecting runtime permissions with enterprise policies and approvals.
  • AI Workflow Factory brings process analysis and application development together, with people continuing to set goals and approve workflow outcomes.
  • Quarterly subscription revenue increased 24.5% YoY to USD 3.877bn, accompanied by growth in contracted obligations and large customer transactions.
  • The company scheduled third-quarter results for 28 October after previously forecasting annual subscription revenue growth and higher non-GAAP operating profitability.

Building enterprise AI workflows and controlling what their agents can do are converging at ServiceNow (NYSE:NOW). The software provider's October launches link automated process improvement with permissions that remain enforceable while agents operate. ServiceNow shares closed at USD 158.18, down 0.49%, after the market session ended on 26 October 2026. The programme follows subscription and AI contract growth, with a quarterly financial update scheduled for 28 October.

Signed Credentials Establish Authority During Execution

Introduced on 15 October, AI Passport uses a cryptographically signed credential to identify the actions an AI agent is authorised to perform. Its runtime checks connect the agent's scope with enterprise context, policies and approvals.

That means authority can be checked as work proceeds. If activity exceeds the permitted scope, available responses can include restriction, redirection, reconnecting the agent with appropriate context or ending execution. An audit record preserves the relationship between authority and actions.

The wider update also addresses discovery of unapproved AI, mapping of access rights, behaviour monitoring and measurement of spending against outcomes. ServiceNow intends these capabilities to give enterprises a shared view of AI activity as they extend deployments into production.

The governance programme includes announced capabilities and integrations with their own availability schedules. Introducing the broader framework does not establish that every individual integration is already generally available.

Workflow Factory Links Process Improvement With Applications

The 6 October AI Workflow Factory launch connects Process Mining, Autonomous Engineer and Build Agent with App Engine. The intended sequence begins with identifying process improvements, proceeds to building workflows and then supports execution under AI governance controls.

People retain responsibility for setting objectives and approving results. Developers also retain control over critical decisions, while Action Fabric extends the approach to external agents and tools. The workflow programme is designed to support repeated improvement rather than a single application-building task.

ServiceNow said AI Workflow Factory was globally available when announced. Autonomous Engineer, however, remained in early access on request. The development component's status is therefore separate from the availability of the wider workflow offering.

Subscriptions and Contract Activity Frame the Next Results

Subscription revenue reached USD 3.877bn in 2QFY26, increasing 24.5% YoY. Total revenue rose 24% YoY to USD 3.987bn. Current remaining performance obligations increased 21% YoY to USD 13.2bn, while total remaining obligations were USD 29bn.

The AI business surpassed USD 1bn in annual contract value. That measures contracted activity rather than revenue recognised in the quarter. ServiceNow also completed 123 transactions exceeding USD 1mn in net new annual contract value during the period.

Its July annual outlook called for FY26 subscription revenue of USD 15.76bn–15.78bn and a non-GAAP operating margin of 31.5%. Those forecasts remain the financial reference ahead of the next reporting event.

Third-quarter results are scheduled after the US market close on 28 October. They will update financial performance separately from the October product launches. Meanwhile, the stated operating focus combines building and running workflows with defined authority, approvals and monitoring as enterprises use more autonomous software across their processes.