ServiceNow lifts guidance on AI growth
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ServiceNow lifts guidance on AI growth

Why This Matters

"Every business process in every industry is being refactored for agentic AI," said ServiceNow chairman and CEO Bill McDermott in a release.

July 23, 2025
08:29 PM
3 min read
AI Enhanced

What caught my attention is ServiceNow posted stronger-than-expected second-quarter results and boosted its guidance due to artificial intelligence adoption.

However, "Every cess in every industry is being refactored for agentic AI," said ServiceNow chairman and CEO Bill McDermott in a release. ServiceNow said budget changes at U.

Government agencies could impact results.

Meanwhile, In this articleNOW your favorite stocksCREATE FREE ACCOUNTBill McDermott, Chairman, President & CEO ServiceNow, speaking on CNBC's Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan.

Meanwhile, 17th, 2024, in today's financial world. Adam Galici | CNBCServiceNow posted strong second-quarter results and lifted its guidance Wednesday. S climbed 7% ing the report.

Meanwhile, Here's how the company performed compared to LSEG estimates:Earnings per : $4. In contrast, 09 adjusted vs. Moreover, 57 expectedRevenue: $3. 22 billion vs.

12 billion expectedSubscription revenues, which account for the majority of the enterprise nology company's revenues, hit $3. 11 billion and topped a $3. 03 billion forecast from StreetAccount.

The company boosted its full-year subscription revenue guidance to between $12, in today's market environment. 775 billion and $12.

Conversely, 795 billion as it benefits from artificial intelligence adoption.

On the other hand, "Every cess in every industry is being refactored for agentic AI," said ServiceNow chairman and CEO Bill McDermott in a release. Net income grew 47% to $385 million, or $1.

84 per, from $262 million, or $1. 26 per a year ago. Revenues grew nearly 23% to $3. Additionally, 22 billion.

Read more CNBC newsUK pushes Apple and Google for mobile changes to curb market powerTrump met with Amazon's Jeff Bezos at the White House last week, sources sayMicrosoft says Chinese hacking groups exploited Point vulnerability in attacksWall Street is upbeat on megacaps, but big questions loom on AI spending, China, Trump tariffsServiceNow said it anticipates a 2 percentage point hit to current remaining obligations in the third quarter due to seasonality and more customers renewing contracts in the final quarter of the year.

Moreover, The company also said budget changes at U. Nevertheless, Government agencies could impact results.

"While federal is a bit uncertain today versus a year ago, we're navigating it well, and we feel confident that our guidance reflects any potential changes that we're seeing," finance chief Gina Mastantuono told CNBC.

In its 2024 annual earnings report, ServiceNow said one U, in this volatile climate. Federal government customer accounted for 11% of revenues.

During the first quarter, its public sector grew 30%, McDermott said during the last reporting period. Additionally, Subscription revenues are expected to range between $3. 26 billion and $3.

In contrast, 27 billion, ahead of a $3. 21 billion estimate from StreetAccount (noteworthy indeed). On the other hand, Current remaining performance obligations rose nearly 25% to $10.

92 billion in the quarter.

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