Subscription revenue surged 25% year-over-year, exceeding analyst expectations amid broader SaaS sector pressure.
ServiceNow reported Q2 revenue of $3.99 billion, a 24% year-over-year increase, surpassing analyst estimates of $3.93 billion. Adjusted earnings per share rose 11% to $0.90, above the expected $0.86.
Subscription revenue climbed 25% to $3.88 billion, while professional services revenue grew 9% to $110 million. On a constant currency basis, subscription growth accelerated from 19% in Q1 to 23%. The company highlighted strong demand for its AI and cybersecurity offerings.
AI annual contract value surged 40% quarter-over-quarter to over $1 billion, with a $1.5 trillion target by year-end. ServiceNow also noted its $1 billion cybersecurity business is expanding faster than competitors in the sector.