ServiceNow reports 24% year-over-year revenue growth, up from 22% in Q1, amid AI-driven demand and model transition.
ServiceNow (NOW) posted a 24% year-over-year revenue increase in Q2, accelerating from 22% in Q1 and 20.5% in Q4 2025. The growth reflects rising enterprise demand for AI governance and security tools, positioning the company as an “AI Control Tower” for businesses.
Wall Street concerns about AI disrupting SaaS pricing have weighed on the stock, which has fallen 37% this year. However, ServiceNow’s shift from per-seat pricing to a consumption-based model appears to be gaining traction, with customers using agentic AI in production growing 9x over the last nine months.
Management noted that 50% of net new business is now non-seat-based, suggesting resilience against pricing pressures. The company’s focus on AI-driven consumption could support long-term revenue growth.