ServiceNow (NOW.US) recently held its Q3 2025 earnings call, revealing strong performance and accelerated growth for its AI-powered Assist platform. Key highlights include:

1. **Assist Growth & Monetization**: - Usage of Assist has surged 55x since May, with monetization expected in upcoming quarters. - Now Assist’s Annual Contract Value (ACV) is on track to exceed $500M by year-end, ahead of initial projections. The company is steadily progressing toward its $1B target for next year.

2. **Financial Performance**: - Q3 revenue reached $3.41B, up 21.81% YoY. - Net income stood at $502M, a 16.20% YoY increase, with basic EPS of $2.42 (up 15.79% YoY).

3. **Customer Adoption & Use Cases**: - Over 1,700 clients are actively using Assist, with adoption growing daily. - Agentic workflows are transforming consumption patterns, enabling automation in incident management, triage, and customer support. Notable examples include Lenovo (35% faster ticket resolution) and Bell Canada (90% automation in call routing).

4. **Pricing & Revenue Mix**: - Now Assist’s hybrid pricing model (subscription + consumption) has seen strong uptake, with subscription revenue dominating the $500M ACV target. Price increases exceeded 30%, reflecting robust demand.

5. **AI Control Tower & Security**: - AI Control Tower is emerging as a critical solution for governance, security, and compliance, driving 4x customer growth this quarter. - Security business surpassed $1B ACV, fueled by AI-driven risk management and incident response automation.

6. **Future Outlook**: - ServiceNow reiterated confidence in its 2026 targets, including margin expansion and free cash flow growth. - The pending acquisition of MoveWorks (expected by late Q4) is anticipated to enhance AI capabilities further, though Now Assist’s success remains organic.

7. **Industry-Specific AI Solutions**: - The company emphasized vertical expertise (e.g., retail, healthcare, finance) with tailored workflows, such as Ulta Beauty’s retail operations and Visa’s dispute management system.

8. **Operational Efficiency**: - Internal AI adoption has automated 90% of IT, HR, and customer service workflows, improving employee productivity and scalability.

ServiceNow’s CEO highlighted the platform’s role in consolidating fragmented AI pilots into enterprise-wide solutions, citing demand from CEOs seeking tangible ROI. The company remains a standout in the "Rule of 50+" club, balancing >20% revenue growth with >30% free cash flow growth.