ServiceNow (NOW) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

AI and platform strategy

• ServiceNow positions itself as the AI Control Tower for business reinvention, integrating with every major hyperscaler and language model to automate workflows across the Fortune 2000.

• The Universal Agentic Network connects ServiceNow to all major enterprise nodes, enabling seamless workflow automation and data integration.

• ServiceNow leverages partnerships with AI leaders like Anthropic and OpenAI, embedding their capabilities into industry-specific solutions such as healthcare operations.

• Workflow automation is highlighted as a unique competitive advantage, with 85 billion workflows in flight and nearly 7 trillion transactions.

• The platform supports both human and agent identities, managing them through a unified control plane for business processes.

Product innovation and adoption

• Now Assist, launched in November 2024, has nearly 3,000 customers and is designed to radically simplify work through agentic automation.

• The hybrid pricing model, combining seat-based and agent-based pricing, is gaining traction, with assist pack consumption up 55x since May of last year.

• Customers value the ability to manage both human and non-human agents, with new roles like AI specialists and security operations agents emerging.

• The platform enables mass customization and autonomous workflows, with customers frequently reloading Now Assist packs.

• CRM pipeline has reached $2 billion, with a focus on customer resolution management and end-to-end order fulfillment.

Business model evolution

• ServiceNow is shifting from traditional seat-based pricing to hybrid models, including asset, device, and infrastructure-based pricing.

• The company is exploring value-based pricing, potentially taking a share of the economic value generated for customers.

• Seat growth remains strong at 25% year-over-year, but the company expects agent-based models to dominate in the future.

• The adoption of agents and hybrid pricing is expected to drive a significant increase in subscription revenues, with a "hockey stick" ramp in the second half of the year.

• The long-term ambition is to reach a $1 trillion market cap, building business models to support this growth.