ServiceNow Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : If you think about it, I wanted to start big picture. The beginning of the year was very volatile. For everyone, stock market, probably kind of vendors as well. How did the situation evolve for you this year? What are you seeing?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And what are you seeing on the customer side in terms of their behavior or kind of thinking about maneuvering these volatile times? Like what's the customer -- what are the customer conversations like?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah, okay, perfect, yeah. And I wanted to get back to AI a little bit later. But like just finishing up -- sorry -- on one point in terms of what we're seeing here like Federal this year. You mentioned do a little bit, then we had to shutdown. Thankfully for you guys that was after the end of the quarter. But like, on the one hand, obviously it created kind of volatility, but on the other hand, if the government goes and wants to be more efficient, et cetera, that should play into your playbook. So how is that Federal thinking evolved for you this year?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Is there also an argument that AI -- like with AI coming, you can't do AI with these very old systems. So it's kind of more of a driver that you kind of realize like, shoot, I kind of maybe that pretty old system finally needs to be replaced?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah. Talking about private sector, are you kind of eating your own dog food? Like how is AI within ServiceNow?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Oh sorry, yeah --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And because you're probably involved on the project, to me it sounds like a multi-year journey. Because if I think about like Barclays when we're using AI, it's like, yeah, there's something. And it's like, oh yeah, this is actually working. But you think like bigger picture this, is not

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then what do you see in terms of customer adoption? Because like -- and you started out with the Pro Plus SKU. So if I'm a customer I could, well, I bought Pro Plus. I have AI, but that's on paper. That's not really adoption. Like what are you seeing there in terms of customer behavior?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And how do you think about that consumption -- showing up as consumption? Because like, I guess if I'm a customer at Pro Plus, I get token, I get consumption initially. And then if I use more than I need to come back to prove that point that SaaS is alive and kicking for the whole industry. People want to see consumption growth. Like where are we on that journey? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:45PM, NOW.N - ServiceNow Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then two quick questions around that. If you think about it, if we talk to customers, a lot of them start small. And they were like, okay, well, like, let's not go crazy on the use case in itself because I'm nervous that it starts to hallucinate and things like that. Do you see that and how quickly are they kind of moving on from that? And the second quick question was like on the use cases, does it kind of mirror what you see internally in terms of what other people are using it for?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Just to save you a question for the earnings calls for the next few quarters, we have that slide where you look about the ITSM versus CRM versus HR versus platform. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:45PM, NOW.N - ServiceNow Inc at Barclays Global Technology Conference Conceptually, because you have such a big base on ITSM, if I do more agentic, could we have a scenario that that kind of segment actually grows faster because there's just so much cross sell that you can do there? And so as we get the slides, it's not like, oh my God, like something is wrong with CRM or HR. It's like ITSM has such a big upsell opportunity. Like how do you think about that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And on that note, you mentioned a couple of acquisitions that help you. Like you had one recently. I'm trying to pronounce it, Veza. Like how does that fit in? Like what does that bring?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. So it's interesting to see because it looks like, as you evolve, you realize, okay, this is a good piece of technology. So should we think about like that for the future M&A as well? Like, you identify Moveworks was a good asset, Veza is a good asset.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then, last question on AI, the one more fundamental question is, is AI going to reshape how we think about the different subsegments of SaaS, for example? So I hear you guys talking a lot more about CRM than like a few years ago. There could be maturity, but it could also be with AI, you can kind of do things differently. Can you speak to that? Like how do you see that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah. Okay. Just to wrap up on the growth side a little bit, how do you think about that growth envelope for for ServiceNow? Because like if you -- not because that sounds negative. But if you think about like you've been growing 20%-plus. You're kind of the only company in that scale that still achieves that. But as you think longer-term -- and I don't want guidance from you for next year. But if you think about that growth envelope, like how do you kind of see ServiceNow evolve from here? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:45PM, NOW.N - ServiceNow Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And that sounds pretty exciting. But one way to test that always with the CFO on stage is to ask, okay, how much do you approve for capacity expansion? And if you increase your capacity, it's like, okay, you put your money where you're talking. I'm kind of -- can I still ask that question, or is AI actually changing that to some degree? Because you don't -- you might not need as many people? Like, how do you think about that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah. I remember in previous years when I had you on stage, I kind of got like a, okay, I want to grow my sales force. You're probably not going to give me a number. But -- so that's still -- and like the question where that comes up and it's like as you see some more, could you kind of over index on capacity?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah, oh, you can't say it here then. Yeah, okay.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And is there -- worth it because there was so much volatility this year because there's a lead time obviously on on investment? Where are you on that journey for next year?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah, okay. And then last question from me and then I need to let you go, now, let's bring that all together. Like growth looks really interesting. Margin kind of you can do some stuff. How does that all kind of translate into cash? Because cash you've done kind of like an upgrade on the guidance.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yeah. No pressure for the IR team. No. Yeah, okay. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 8:45PM, NOW.N - ServiceNow Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : All right, perfect. That's a great closing statement. Thank you.