ServiceNow reported $3.77 billion in Q1 revenue, up 22% year-over-year, and raised its full-year subscription outlook.
ServiceNow posted first-quarter revenue of $3.77 billion, a 22% increase year-over-year, driven by strong demand for its AI workflow platforms. The company also raised its full-year subscription revenue outlook, citing high retention rates and scalable growth from its 8,800 customers, including over 85% of the Fortune 500.
Current remaining performance obligations rose 22.5% year-over-year to $12.64 billion, reflecting robust future revenue visibility. Despite these fundamentals, ServiceNow’s stock has declined roughly 35% year-to-date, contrasting with its consistent 20%-plus annual revenue growth and attractive margins.
The company’s AI-driven enterprise operating system has garnered praise from industry leaders, including Nvidia CEO Jensen Huang, who called it the premier platform for AI integration in businesses.