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ServiceNow beats Q2 estimates and raises full-year guidance
Revenue rose more than 24% year over year, and management reported its AI offerings passed $1 billion in annual contract value.
ServiceNow Inc. reported second-quarter results that beat expectations, with revenue growth accelerating more than 24% year over year, according to MarketBeat Ratings. The enterprise software company also raised its full-year outlook, signaling management confidence that recent momentum can continue.
Despite the results, the shares barely moved and remained deep in the red for the year, as the stock has been weighed down by broader fears that AI could eventually replace parts of the business. The concern has been amplified by ServiceNow’s historical per-seat selling model, which bears argue is more exposed to disruption from AI agents.
MarketBeat Ratings noted that the quarter did not show signs of demand erosion. It pointed to activity on large deals, including an increase in the number of major new contracts signed year over year, and customer renewal rates that stayed near the top end for enterprise software.
The outlet also highlighted a milestone for ServiceNow’s AI push, saying the company’s AI offerings crossed $1 billion in annual contract value during the quarter, alongside management raising forward guidance.