Subscription revenue surged 25% to $3.88 billion, while bookings climbed 21% to $13.2 billion, exceeding expectations.
ServiceNow (NOW) shares climbed 3% in early trading after reporting quarterly subscription revenue of $3.88 billion, a 25% year-over-year increase. The company’s current remaining performance obligations (cRPO) rose 21% to $13.2 billion, signaling strong near-term demand.
Analysts had anticipated lower figures, but ServiceNow’s AI-driven growth and solid execution outperformed expectations. The company’s stock had fallen 37% year to date amid broader concerns about AI disruption in the software sector.
Shares of peers, including Salesforce (CRM) and Adobe (ADBE), also rose, lifting the Tech-Software Sector ETF (IGV). Management emphasized robust demand for its AI products, reinforcing investor confidence.