ServiceNow is the first software company to have a Q1 2026 earnings call. We reviewed that call for key take-aways specifically regarding AI and how it is impacting software companies. Below are the standout findings:
AI is being integrated into the software offerings directly. According to ServiceNow’s CEO, “AI, data, security, and governance are now built into every product and package — not a separate purchase. This is a deliberate break from sidecar AI. We’re not bolting intelligence onto disconnected systems. We’re combining context with execution on a single platform.”
ServiceNow is an example of SaaS already monetizing an agentic offering. Their AI product Now Assist is on a trajectory to exceed ServiceNow’s $1 billion ACV target for 2026 and management disclosed that the internal AI ACV forecast for the full year has been raised to $1.5 billion, 50% above the original target. Deals including three or more Now Assist products grew nearly 70% year-over-year, with 36 deals including five or more Now Assist products. AI Control Tower average deal sizes more than doubled quarter-over-quarter.
You can’t vibe code this. “We are the rules and the rails of business. Don’t fall for the parlor trick that one touch button can replace 22 years of excellence. There is no great control tower, there is no great workflow data fabric, and there is no great integration layer that ties into the hyperscalers, the language models, the systems of record without that unbelievable core that Fred Luddy built into this company 22 years ago.”
Software is performing. ServiceNow posted 19% YOYG, beating both their guidance and expectations on the street. They are not seeing a slowdown from “SaaSpocalypse”
We will release more blogs like this as more software companies have their Q1 earnings calls.
Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Email the author at sammy@blossomstreetventures.com.
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