ServiceNow & Google Cloud widen AI agent partnership

ServiceNow and Google Cloud have expanded their partnership to connect AI agents across network operations, retail systems and IT environments. The announcement coincided with ServiceNow's latest quarterly results, which showed continued growth in subscription revenue and large customer contracts.

The new arrangements are intended to let AI agents share data and trigger actions across both platforms, with governance and monitoring managed through a common framework. The setup combines ServiceNow's AI Control Tower and Workflow Data Fabric with Google Cloud services including Gemini Enterprise and BigQuery.

ServiceNow reported Q1 2026 subscription revenue of USD $3.671 billion, up 19% year on year on a constant-currency basis. Remaining performance obligations reached USD $27.7 billion, while current remaining performance obligations rose to USD $12.64 billion, above guidance.

Non-GAAP operating margin was 32%, and diluted non-GAAP earnings per share were USD $0.97. The company also raised its full-year 2026 subscription revenue guidance to between USD $15.735 billion and USD $15.775 billion, with a non-GAAP operating margin target of 31.5% and a non-GAAP free cash flow margin target of 35%.

During the quarter, ServiceNow recorded 16 transactions worth more than USD $5 million in net new annual contract value, representing nearly 80% year-on-year growth. It also said 630 customers now spend more than USD $5 million in annual contract value with the company, up about 22% from a year earlier.

Now Assist, ServiceNow's AI offering, also continued to expand. The number of customers spending more than USD $1 million in annual contract value on the product rose by more than 130% year on year.

Joint systems

The expanded partnership with Google Cloud focuses on three areas: telecoms networks, retail operations and IT incident management. In telecoms, AI agents will identify network problems, analyse the cause and pass the information into ServiceNow workflows so fixes can be selected and applied.

In retail operations, data from equipment can be analysed in BigQuery and then used to trigger ServiceNow workflows for triage, spare-parts checks, stock reservation and technician dispatch. In IT operations, AI agents will work together to detect anomalies, assess the likely impact and coordinate remedial steps across cloud systems.

The companies are also integrating ServiceNow AI Control Tower with the Gemini Enterprise Agent Platform so IT and security teams can monitor AI agents and model context protocol servers from both environments in a single registry.

"ServiceNow and Google Cloud share a conviction that the future of enterprise AI is built on open, interoperable platforms, not walled gardens. The solutions we're delivering together prove this premise," said John Aisien, general manager and senior vice president of central product management at ServiceNow. "When our technologies work in lockstep, enterprises get what modern operations demand: an automated chain from first signal to final resolution."

Google Cloud presented the agreement as a way for customers to run AI tools across multiple platforms while retaining oversight.

"Real customer value from agentic AI will be unlocked when agents seamlessly interoperate across platforms and systems, with enterprise-grade governance," said Kevin Ichhpurani, president of global partner ecosystem at Google Cloud. "By uniting Gemini Enterprise with the ServiceNow AI Platform via open protocols like MCP, we're delivering an interoperable AI workforce that can detect, diagnose, and resolve issues autonomously."

Broader push

Outside the Google Cloud partnership, ServiceNow highlighted strong growth in other parts of its business. Sales CRM net new annual contract value grew by more than five times year on year, while deal count increased by more than 80%.

Moveworks also exceeded its first full-quarter target after being acquired, closing more deals above USD $1 million in Q1 than it did in the whole of the previous year. ServiceNow added that it closed its acquisition of Armis ahead of schedule as it expands in security software.

Share buybacks were another feature of the quarter. ServiceNow repurchased about 20.1 million shares, nearly double the amount bought back in all of 2025, leaving about USD $4.2 billion in authorisation remaining.

A separate customer deployment also showed how the company wants to position its software in day-to-day operations. ServiceNow said TridentCare has deployed its AI platform across 5.4 million annual patient visits, replacing manual coordination with automated processes and reaching 96% scheduling automation alongside a 57% reduction in patient wait times.

Google Cloud also named ServiceNow a 2026 Google Cloud Partner of the Year in four categories, including Global Business Applications and Business Applications: Agentic AI Innovation.