Key takeout
- ServiceNow has beaten profits and sales estimates for increasing demand for artificial intelligence business products.
- Subscription revenues increased by 22.5%, while the number of customers with annual recurring revenues exceeding $20 million increased by 30%.
- ServiceNow has increased its full-year subscription revenue guidance.
ServiceNow (current) stock surged Thursday after the company reported better than expected results and boosted guidance on increasing demand for its artificial intelligence (AI) business platform.
The software maker stated that its second quarter profit of $4.09, $0.52 more than the analyst visible Alpha was looking for. Revenue exceeded forecasts, up 22.5% year-on-year to over $3.22 billion.
Additionally, subscription revenues rose 22.5% to $31.1 billion, with the number of customers with recurring revenues of over $20 million a year, up 30%.
CEO Bill McDermott said the performance reflects the importance of the ServiceNow AI platform. “All business processes in every industry are refactored for Agent AI, he said.
The company has raised its full-year subscription revenue outlook from $12.775 billion to the $12.799.5 billion range from the previous $12.64 billion forecast to the $12.68 billion range.
Despite today's progress, ServiceNow stock fell by around 6% in 2025.
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