---
title: "ServiceNow's CEO called Moveworks 'way ahead' once on the Q3 call; the $100 million ACV was EmployeeWorks'"
description: "The October 28 earnings call gave the $2.85 billion acquisition its first on-record praise since the deal closed, and its only mention in a 70,000-character transcript. The $100 million ACV figure standing next to it was attributed to EmployeeWorks, a product ServiceNow built itself."
publisher: "The Inference"
section: "Platforms"
published: 2026-10-31T17:13:41.414Z
modified: 2026-10-31T17:13:41.414Z
canonical: https://theinference.org/article/servicenow-s-ceo-called-moveworks-way-ahead-once-on-the-q3-call-the-100-million-acv-was-employeeworks
language: en
keywords: "ServiceNow, Moveworks, Earnings, Mergers & Acquisitions, AI Agents"
---

# ServiceNow's CEO called Moveworks 'way ahead' once on the Q3 call; the $100 million ACV was EmployeeWorks'

> The October 28 earnings call gave the $2.85 billion acquisition its first on-record praise since the deal closed, and its only mention in a 70,000-character transcript. The $100 million ACV figure standing next to it was attributed to EmployeeWorks, a product ServiceNow built itself.

[On the October 28 earnings call](https://finance.yahoo.com/markets/stocks/articles/servicenow-now-q3-2026-earnings-054403139.html), [ServiceNow](https://theinference.org/markets/companies/servicenow) (NYSE: NOW) chairman and CEO [Bill McDermott](https://theinference.org/markets/people/bill-mcdermott) listed what is selling at the enterprise software giant: "The Super Intelligence Control Tower, Veza, Armis, [Moveworks](https://theinference.org/markets/companies/moveworks) [1]. I mean, in three quarters, you created $100 million in ACV [1]. All these businesses are way ahead of what we had anticipated when we brought them into the family." [1] ACV, annual contract value, is the subscription revenue measure software companies quote to investors.

That sentence is the buyer's most direct endorsement of Moveworks since the $2.85 billion deal closed, and it is the only time the name appears in the roughly 70,000-character transcript. [1] The $100 million ACV figure on the call was attributed, in prepared remarks, to EmployeeWorks, ServiceNow's own employee front door. [1] No Moveworks-specific contract value has been disclosed since the close. A $2.85 billion acquisition earned one sentence in a 70,000-character transcript, and the number standing next to it belongs to a product the parent built itself [1].

## What $11.85 billion bought

ServiceNow [announced the Moveworks purchase](https://finance.yahoo.com/news/servicenow-buys-ai-agent-company-140606972.html), its push into AI assistants and enterprise search that reach a whole workforce, in March 2025 for $2.85 billion in cash and stock, and closed it in December 2025. [2][3] Since 2025 the company has announced more than $11 billion in acquisitions, including Veza, an identity-security firm, for about $1.25 billion, and Armis, a cybersecurity company, for $7.75 billion. [4]

*Chart: **Three AI acquisitions worth $11.85 billion shared one sentence on the Q3 call** Bar chart of announced acquisition prices at ServiceNow: Moveworks $2.85 billion, Veza about $1.25 billion, Armis $7.75 billion. The Moveworks bar is highlighted in gold and annotated 'one sentence on the Q3 call'.*

*Announced deal prices, US dollars: Moveworks $2.85 billion, announced March 2025; Veza about $1.25 billion and Armis $7.75 billion, both agreed December 2025. Source: Stocktwits via Yahoo Finance, October 14, 2026. [4]*

The payoff matters to shareholders right now. The stock [fell 27% on October 29, its worst day on record](https://theinference.org/article/servicenow-falls-27-its-worst-day-ever-as-gartner-finds-97-of-companies-can-t-turn-ai-into-savings), after ServiceNow [guided fourth-quarter cRPO growth, contracted revenue due within a year, to 18.5% against the 19.8% analysts expected](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html). [5][6]

## The parent cuts payroll, the unit posts jobs

On the same call, McDermott called ServiceNow's slightly declined headcount "a gorgeous situation," and president and CFO [Gina Mastantuono](https://theinference.org/markets/people/gina-mastantuono) said the company's own AI use now generates more than $1 billion in annualized value, "more than double the level we exited 2025," which means, she said, "we're able to not hire as many people." [1][6] ServiceNow [cut 214 positions at its San Diego office across three rounds this year, per state WARN filings](https://www.sandiegouniontribune.com/2026/10/19/servicenow-cuts-san-diego-sales-jobs-in-third-round-of-layoffs-this-year/). [7]

The acquired unit is hiring the other way. Moveworks [posted a lead machine-learning engineering manager for AI-powered conversational search in Mountain View](https://trabajos.univision.com/job/23-14660_65A12D8C8381B6AF5DFFD3102BDC54D2) on October 27, with a base salary of $187,000 to $299,000. [8] Three days earlier, Dan Aherne-McInteer started as the unit's director of solutions consulting for Asia Pacific and Japan, recruited from ServiceNow itself. [9]

## The launches that skipped the name

The product record is harder to square with "way ahead." [On October 1 ServiceNow launched Flow, a standalone conversational AI service desk](https://www.businesswire.com/news/home/20261001356145/en/Introducing-Flow-by-ServiceNow-a-new-AI-service-desk-that-deploys-instantly); the launch release never mentions Moveworks. [10] [The October 15 updates to EmployeeWorks](https://www.computerworld.com/article/4235892/servicenow-makes-it-easier-to-build-ai-agents-gives-them-verifiable-identities-3.html), the employee front door Moveworks was bought to power, carry no Moveworks mention either. [11] [Jefferies](https://theinference.org/markets/companies/jefferies) analysts noted investors are wary of the acquisition bill after the more-than-$11 billion M&A run. [4]

The defense is real, if thin. The unit still hires under its own name, including search engineers and a regional director, and the CEO put it in his pipeline-growth list on the record. [1][8] Whether that reflects a live product roadmap or a brand waiting to be folded into parent functions is exactly what the record does not say.

## What would settle it

ServiceNow raised its 2026 AI contract-value target to $1.7 billion, from $1 billion in January and $1.5 billion in May, and said agentic AI consumption in production is up 13-fold year over year. [1] Whether Moveworks carries any of that cannot be read from anything the company has published. The tell is attribution: a Moveworks-specific ACV figure, or the continued absence of one, on the fourth-quarter call in January.

*Chart: **ServiceNow has raised its 2026 AI contract-value target twice since January** Column chart of ServiceNow's 2026 AI contract-value target as raised across 2026: $1 billion in January, $1.5 billion in May, $1.7 billion in October.*

*ServiceNow's target for 2026 AI contract value as it stood after each raise: $1 billion set in January, lifted to $1.5 billion in May and to $1.7 billion on the October 28 third-quarter call. Source: ServiceNow Q3 2026 earnings call transcript, The Motley Fool via Yahoo Finance. [1]*

## Takeaway

ServiceNow's only on-record Moveworks mention of the Q3 call put a $100 million ACV figure next to the name, but that number belongs to EmployeeWorks; whether the $2.85 billion acquisition has figures of its own should show on the January Q4 call.

## Sources

1. [The Motley Fool via Yahoo Finance, ServiceNow (NOW) Q3 2026 Earnings Call Transcript, 28-29 October 2026](https://finance.yahoo.com/markets/stocks/articles/servicenow-now-q3-2026-earnings-054403139.html)
2. [Fortune via Yahoo Finance, ServiceNow buys AI agent company Moveworks for $2.85 billion, 10 March 2025](https://finance.yahoo.com/news/servicenow-buys-ai-agent-company-140606972.html)
3. [TechTarget (CIO), Agentic AI security focus of ServiceNow acquisition targets, 18 December 2025, updated 21 December 2025](https://www.techtarget.com/searchCustomerExperience/news/366636659/Agentic-AI-security-focus-of-ServiceNow-acquisition-targets)
4. [Stocktwits via Yahoo Finance, ServiceNow Denies Decagon Acquisition Interest, Analyst Says Investors Wary After NOW's M&A Spree, 13-14 October 2026](https://finance.yahoo.com/markets/stocks/articles/servicenow-denies-decagon-acquisition-interest-065635358.html)
5. [CNBC, ServiceNow shares plunge 27% to worst day ever after earnings revive AI disruption fears, 29 October 2026](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html)
6. [CTech (Calcalist), 'A gorgeous situation': ServiceNow's CEO celebrates a shrinking workforce, 30 October 2026](https://www.calcalistech.com/ctechnews/article/eft5mhzxc)
7. [The San Diego Union-Tribune, ServiceNow cuts San Diego sales jobs in third round of layoffs this year, 19 October 2026](https://www.sandiegouniontribune.com/2026/10/19/servicenow-cuts-san-diego-sales-jobs-in-third-round-of-layoffs-this-year/)
8. [Univision Trabajos job listing, Lead ML Engineering Manager, AI-Powered Conversational Search, Moveworks, Mountain View, posted 27 October 2026](https://trabajos.univision.com/job/23-14660_65A12D8C8381B6AF5DFFD3102BDC54D2)
9. [AiTech365, Dan Aherne-McInteer Joins Moveworks as Director of Solutions Consulting, APJ, 22 October 2026](https://aitech365.com/business-technology/dan-aherne-mcinteer-joins-moveworks-as-director-of-solutions-consulting-apj/)
10. [Business Wire, Introducing Flow by ServiceNow: a new AI service desk that deploys instantly, 1 October 2026](https://www.businesswire.com/news/home/20261001356145/en/Introducing-Flow-by-ServiceNow-a-new-AI-service-desk-that-deploys-instantly)
11. [Computerworld, ServiceNow makes it easier to build AI agents, gives them verifiable identities, 15 October 2026](https://www.computerworld.com/article/4235892/servicenow-makes-it-easier-to-build-ai-agents-gives-them-verifiable-identities-3.html)


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ServiceNow's CEO called Moveworks 'way ahead' once on the Q3 call; the $100 million ACV was EmployeeWorks' — The Inference. Canonical: https://theinference.org/article/servicenow-s-ceo-called-moveworks-way-ahead-once-on-the-q3-call-the-100-million-acv-was-employeeworks