ServiceNow's AI Drives Growth

ServiceNow has reported strong financial results, driven by increasing adoption of its AI-powered solutions. The company's Q2 earnings surpassed expectations, with revenue increasing by 22.5% year-over-year to $3.22 billion. Subscription revenue also saw a 22.5% increase, reaching $3.11 billion.

ServiceNow is experiencing significant customer growth, with a 30% increase in customers generating over $20 million in annual recurring revenue. The company's AI platform, particularly NOW Assist and Plus SKUs, is exceeding expectations, driving new customer acquisition and expansion across various industries. Due to this strong performance, ServiceNow has raised its full-year subscription revenue guidance to a range of $12.775 billion to $12.795 billion. ServiceNow expects subscription revenue of between $3.26 billion and $3.27 billion in the current quarter.

ServiceNow's CEO, Bill McDermott, stated that every business process is being refactored for agentic AI. The company has invested billions in AI to automate business processes and workflows, with the goal of boosting productivity and efficiency. ServiceNow even uses 450,000 internal AI agents and has seen a 50% increase in productivity within its sales team.