ServiceNow unveils Action Fabric and Otto for AI workflow automation
Updated
Updated · en.sedaily.com · May 8
ServiceNow unveils Action Fabric and Otto for AI workflow automation
11 articles · Updated · en.sedaily.com · May 8
At its K26 event in Las Vegas, ServiceNow said Action Fabric works across models including GPT, Claude, Gemini and Copilot, while AWS Marketplace transactions topped $1 billion.
CEO Bill McDermott linked the launches to his goal of lifting ServiceNow from about $98 billion to a $1 trillion valuation by 2030, despite the stock falling roughly 35% this year.
The company says automation and AI governance will help businesses manage a projected surge in agents and labour shortages, while supporting its plan to double subscription revenue to $30 billion by 2030.
With its stock down 39%, can ServiceNow's AI bet make it a trillion-dollar company, or is the 'Saaspocalypse' real?
ServiceNow is launching AI 'digital employees.' Is this the next productivity leap or a new frontier for catastrophic corporate errors?
ServiceNow’s AI Control Tower Drives 22% Revenue Growth Amid 33% Stock Decline in Q1 2026
Overview
ServiceNow started 2026 strong with 22% year-over-year subscription revenue growth and a 25% increase in Remaining Performance Obligation, leading to a raised full-year revenue guidance. Key drivers include rapid adoption of its AI product Now Assist, whose contract value exceeded $750 million in Q1 and supports a $1.5 billion AI revenue target for 2026. Strategic acquisitions like Armis and Moveworks enhance capabilities but caused near-term margin pressures. Despite solid fundamentals, the stock fell 33% due to sector-wide SaaS fears and integration costs. Confident in its growth, ServiceNow launched a $1.5 billion share buyback, positioning itself as the leading AI workflow and control tower platform toward its $30 billion 2030 goal.