ServiceNow Raises Full-Year Revenue Outlook Amid Strong AI Growth
ServiceNow (NYSE:NOW) raised its full-year subscription revenue forecast following a strong second-quarter performance driven by increased demand for artificial intelligence solutions. The company reported adjusted earnings of $0.90 per share, exceeding expectations and reporting total revenue of $3.99 billion with subscription revenue up 24.5% year-over-year to $3.88 billion. The improved outlook reflects continued momentum in AI adoption across its platform, including a ninefold increase in agentic AI deployments over the past nine months and surpassing $1 billion in annual contract value for AI services. ServiceNow also expanded strategic partnerships with major tech firms like Nvidia, Microsoft, AWS, Accenture, Experian, FedEx, and Lenovo to enhance its AI ecosystem. Despite these gains, analysts caution that legacy software companies face growing competition from emerging AI developers.
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Topics: AI adoption enterprise software subscription revenue growth