January 29, 2026 • 5 min read
ServiceNow Delivers Its Strongest CRM Growth Quarter Ever
Director of Content & Market Research
January 29, 2026
ServiceNow delivered a record-breaking quarter for its CRM business, with a spike in net new annual contract value (NNACV).
NNACV reflects the annualized value of contracts from both new customers and expansions within the existing customer base.
The metric accelerated at a record pace quarter over quarter, helping ServiceNow post its strongest CRM earnings to date.
Alongside this metric, ServiceNow revealed that 16 of its top 20 enterprise deals in Q4 included its CRM offering, which uniquely consolidates service, sales, and order management on a single platform.
Order management typically involves connecting workflows across CRM and ERP solutions, yet ServiceNow cuts through that integration complexity. That’s a differentiator.
So too is its broader emphasis on converging front-, middle-, and back-office systems, and orchestrating workflows across them, which resonates today and will continue to do so as AI agents start to communicate across systems.
3 Trends Accelerating ServiceNow’s CRM Growth
ServiceNow’s CRM growth isn’t happening by chance. Industry trends, like the three below, have proven significant in furthering its market push.
1. A Change in CRM Buyers
CX leaders once drove the procurement of enterprise CRM technology. Today, particularly in customer service, IT teams are more often taking the lead, while CX functions play a more supportive role.
Increasingly, these IT teams are exploring ways to converge IT, customer, and HR service, transforming enterprise service management (ESM) from a focus on tickets and portals into dynamic, real-time conversational experiences.
In doing so, they may wish to converge ESM on one platform with a shared, underlying data fabric to pool insights.
ServiceNow is likely the preferred platform for many companies with this ambition. After all, it already owns over 40% of the global ITSM market.
That said, at Dreamforce 2025, Salesforce launched an ITSM product, Agentforce IT Service, which may hinder ServiceNow’s efforts to expand into CRM via the ITSM back door moving forward.
2 A Shift Toward Platform Consolidation
Thanks to its unique combination of sales, order management, and support, ServiceNow handles more of the post-sale process on its CRM than its industry counterparts, with less of an integration burden.
Brands can also implement ServiceNow deeper into their operations, which has created opportunities to consolidate platforms, reduce overlap with systems like Salesforce, and lower overall costs through bundling.
The opportunity for consolidation has become especially attractive, with ServiceNow orchestrating longer-tail customer workflows across its solutions.
To support this, the company has developed industry-specific packages that help customers streamline processes without relying on extensive custom-built functionality.
3 A Shift in the Primary Customer Service Interface
Currently, more organizations leverage their on-premise contact center or CCaaS solutions as the main interface for customer service. However, that’s shifting.
Indeed, Metrigy predicts that by the close of 2027, only 32.4% of companies will still use contact center as their primary service interface, with 53.4% instead electing their CRM.
With this shift, more contact centers will likely choose to leverage the agent-assist tooling of their CRM providers, including AI summaries, replies, guidance, and more.
That trend will benefit all CRM providers and allow ServiceNow to continue expanding its deals, selling more Now Assist packages.
ServiceNow’s CRM Success Stories
During its earnings call, ServiceNow shared many CRM customer wins and success stories.
For instance, Panasonic Avionics will now use ServiceNow CRM within the broader ServiceNow AI platform to support 300+ airlines.
Meanwhile, CEO Bill McDermott shared how a major European drugstore chain transformed its customer service operations with ServiceNow, cutting customer wait times from nine minutes to just 30 seconds while reportedly resolving issues with 98% accuracy.
He also discussed how a leading Canadian real estate company adopted the ServiceNow CRM platform to unify resident support and field operations on a single data model.
Lastly, a seven-figure deal with a high-tech manufacturer, involving an end-to-end takeout of a legacy CRM competitor, included the adoption of ServiceNow CPQ. That helped solve complex deal evaluations, replacing manual spreadsheets and unsuccessful legacy tools.
Overall, the customer base for ServiceNow’s CPQ has quadrupled since the tech giant acquired Logik.ai in April 2025, adding value to ServiceNow's CRM proposition.
“We're delivering the ROI, and we know it. I'll give you one example where we replaced the legacy CRM system… and the customer saved $682MN.”
ServiceNow Takes on Salesforce
Last year, ServiceNow CEO Bill McDermott stated his long-term goal of becoming the CRM market leader multiple times.
Salesforce is currently in pole position, generating $21.6BN in annual CRM revenues, according to 2025 IDC research. Microsoft, its closest competitor, earns $5.45BN.
In other words, ServiceNow has a mountain to climb.
However, its IT buy-in, industry-specific packages, and baked-in order management make ServiceNow a compelling competitor in this space.
While Salesforce CEO Marc Benioff has previously dismissed Salesforce vs. ServiceNow as McDonald's vs. Wienerschnitzel, it’s a rivalry of increasing intrigue.
As ServiceNow CRM revenue hits new heights and Salesforce enters its ITSM heartland, this competitive dance is worth keeping an eye on, especially as they also battle for AI agent mindshare.