What Is ServiceNow Net Revenue Retention in 2026?

What ServiceNow discloses, and what it does not

ServiceNow defines the renewal rate in its 10-K as 100% minus the attrition rate. Attrition is the ACV of customers lost in the period, divided by the ACV that renewed (excluding changes in price or users) plus the ACV lost. Four details matter for anyone treating it like NRR:

• It is based on ACV, not on the number of customers that renewed.
• Expansion is excluded. The filing says the renewal rate does not reflect increased or decreased purchases from customers that are not lost.
• Downsell mostly does not count as loss. A customer that reduces its subscription at renewal is typically not treated as lost, unless the decrease is the majority of its ACV.
• Timing distorts comparisons. The company itself says period-to-period comparison of renewal rates may not be meaningful because renewals can happen before or after the contract end date.

The renewal rate history

Reported renewal rates are flat. The 10-K says the renewal rate was 98% for each of the years ended December 31, 2025, 2024 and 2023, and that subscription arrangements typically run three years. The Q2 2026 10-Q reports 98% for both the three and six months ended June 30, 2026 and 2025.

• Years ended December 31, 2023, 2024, 202598% each year
• Three and six months ended June 30, 2025 and 202698% in each period
• Typical subscription termThree years

A 98% renewal rate means roughly 2% of renewing ACV is lost to cancelled customers in a year. It says nothing about how much those customers spent more or less the next year.

Customers over $5 million ACV and what they imply about expansion

ServiceNow reports the number of customers with ACV above $5 million, which is the closest disclosed signal of large-account expansion. The counts come from the 10-K and 10-Q, and ServiceNow restates earlier counts for comparability:

• December 31, 2023420 customers over $5 million ACV
• December 31, 2024502 customers over $5 million ACV
• December 31, 2025603 customers over $5 million ACV
• June 30, 2025533 customers over $5 million ACV
• June 30, 2026658 customers over $5 million ACV

The Q2 2026 earnings release puts the June 30, 2026 count at about 23% above a year earlier. Growth in this group comes either from new large customers or from existing ones expanding past the threshold, and ServiceNow does not split the two, so it supports an expansion story without proving a rate. The company also does not disclose a count of customers over $1 million ACV. What it discloses is 123 transactions over $1 million in net new ACV in Q2 2026, growing nearly 40% year over year. That counts deals, not customers, and includes new and existing accounts. The 10-K gives approximately 8,700 customers in total at December 31, 2025.

Subscription revenue growth and cRPO

Subscription revenue was $12,883 million in 2025 against $10,646 million in 2024, up 21%, and the 10-K attributes the $2.2 billion increase to increased purchases by new and existing customers. It was $8,680 million in 2023. Included in 2025 subscription revenue is $492 million recognized upfront from self-hosted software, up from $409 million in 2024, so mix timing affects the growth rate.

In Q2 2026 subscription revenue was $3,877 million, up 24.5% (23% in constant currency). Current remaining performance obligations, the contract revenue that will be recognized in the next 12 months, were $13.20 billion at June 30, 2026, up 21% (21.5% in constant currency). Total remaining performance obligations were $29.0 billion. At December 31, 2025, the 10-K gave RPO of $28.2 billion, of which 46% was cRPO, with RPO up 27% and cRPO up 25%. For Q3 2026 the company guided to subscription revenue of $3,975 to $3,980 million and cRPO growth of 19.5% (20% in constant currency).

How to estimate NRR from public data (an estimate, not a reported figure)

NRR needs revenue from a fixed set of customers a year apart. ServiceNow does not publish that cohort, so the best public approach is a ceiling:

• Step 1. Take subscription revenue growth: $12,883 million divided by $10,646 million is about 1.21.
• Step 2. Recognize that this total includes revenue from customers who were not customers a year earlier, and from acquisitions.
• Step 3. Read the result as an upper bound. If new customers contributed nothing, NRR would be about 121%. Every point of growth that came from new customers or acquired revenue lowers it.

A floor is harder. The 98% renewal rate and 21% subscription growth suggest NRR is well above 100%, but the size of the gap depends on how much growth came from new logos, which ServiceNow does not disclose.

How it compares to peers that do report NRR

Snowflake is the cleanest comparison because it reports a true NRR. Its Q2 fiscal 2027 release shows a net revenue retention rate of 126%, with 828 customers above $1 million in trailing 12-month product revenue, up 27%. Snowflake's definition divides second-year product revenue from a cohort of capacity-contract customers by their first-year revenue, and any customer that stops using the platform counts as zero.

The two figures are not like for like. Snowflake's rate depends on usage-based consumption, ServiceNow sells mostly subscription contracts, and ServiceNow does not publish a cohort-based rate. Putting 126% next to ServiceNow's 98% renewal rate would compare unrelated measures. The valid comparison is Snowflake's 126% against ServiceNow's undisclosed NRR, which our ceiling of about 121% suggests is lower.

What this means for RevOps teams and buyers

• Do not cite a ServiceNow NRR as fact. If a deck or analyst note shows one, ask for the method. ServiceNow's filings do not contain it.
• Use the renewal rate as a churn indicator only. A 98% ACV renewal rate means few customers leave. It does not show expansion.
• Track the $5 million customer count and cRPO growth. Both are reported every quarter and are the best public proxies for expansion in large accounts.
• For your own company, calculate NRR from your cohorts. Divide current revenue from customers you had a year ago by those customers' revenue then, which is the method Snowflake describes.
• Buyers can read 98% as vendor stability. It signals that customers rarely walk away, which matters for a platform with a typical three-year term.

Questions people ask

Sources

• ServiceNow Form 10-K for 2025 (SEC) · Renewal rate definition and history, customers over $5 million ACV, subscription revenue, RPO and cRPO
• ServiceNow Form 10-Q for the quarter ended June 30, 2026 (SEC) · Renewal rate for 2026 and 2025 periods, customers over $5 million ACV
• ServiceNow Q2 2026 earnings release (SEC Form 8-K) · Subscription revenue, cRPO, RPO, net new ACV deals over $1 million, Q3 guidance
• Snowflake Q2 fiscal 2027 earnings release (SEC Form 8-K) · Reported net revenue retention rate, its definition, customers over $1 million

Figures were read from the linked filings on October 17, 2026. The 121% ceiling is our own arithmetic on reported totals and is not a ServiceNow metric. Check the latest filing before you rely on any number.

Top photo: UASA editor / CC BY-SA 4.0 via Wikimedia Commons