ServiceNow pushes back on AI threats, reporting a 25% jump in subscription revenue

ServiceNow reported second-quarter results that met or exceeded expectations, with subscription revenue rising 25% to $3.9 billion and current remaining performance obligations reaching $13.2 billion. The company also raised its full-year subscription revenue guidance, signaling confidence despite concerns about generative AI’s impact. In response to AI threats, ServiceNow is integrating AI into its products and launching new AI-powered offerings, with its AI business surpassing $1 billion in annual contract value during the second quarter.

• ServiceNow’s subscription revenue increased by 25% to $3.9 billion, exceeding forecasts.
• Current remaining performance obligations reached $13.2 billion, also surpassing expectations.
• The company raised its full-year subscription revenue guidance.
• ServiceNow’s AI business exceeded $1 billion in annual contract value in Q2.
• Customers with AI agent deployments have increased ninefold in nine months.
• ServiceNow signed 123 deals worth over $1 million in net new annual contract value, a 40% year-over-year increase.
• CEO Bill McDermott highlighted the need for software that governs AI systems, positioning ServiceNow’s AI Control Tower as a solution.
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