what happened: ServiceNow (NOW) rose 3% in early trading Thursday.
What’s behind this move: The Santa Clara, California-based software company reported quarterly subscription revenue and bookings that beat analysts’ expectations, reinforcing investor optimism that its artificial intelligence products are helping fuel growth.
Last quarter, subscription revenue increased approximately 25% year-over-year to $3.88 billion, while current remaining performance obligations (cRPO), a key metric for short-term bookings, increased 21% to $13.2 billion.
Management highlighted that demand for the company’s AI products continues to exceed expectations, highlighting ServiceNow’s broad customer demand, solid execution, and operating leverage.
What else you should know: ServiceNow and other software companies have been aggressively integrating generative AI tools into their platforms amid industry scrutiny earlier this year over concerns about AI disrupting business models.
Shares of ServiceNow, which provides workflow management tools to enterprise customers, have plummeted 37% since the beginning of the year.
Shares of software peers including Salesforce (CRM), Snowflake (SNOW), Adobe (ADBE) and Workday (WDAY) rose on Thursday. The Tech Software Sector ETF (IGV) also rose slightly.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X @ines_ferre.
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