ServiceNow Raises Full-Year Subscription Revenue Outlook After Strong Quarter

ServiceNow reported quarterly results that beat TD Cowen's expectations, with subscription revenue rising 25% year over year to $3.9 billion. According to Odaily, remaining performance obligations reached $13.2 billion, above TD Cowen's forecast of $13 billion. The company raised its full-year subscription revenue guidance to $15.76 billion to $15.78 billion, with the top end matching TD Cowen's estimate. ServiceNow's stock has fallen 50% over the past year as investors watch the potential impact of generative AI on some enterprise software services. OpenAI released Presence on Wednesday morning, a product designed to help businesses set up and run AI agents for tasks such as customer service, sales, and employee IT service requests. ServiceNow is adding AI to its existing products and introducing new AI-driven products. ServiceNow said its AI business had more than $1 billion in annual contract value in the second quarter. It also said the number of customers deploying AI agents in production over the past nine months increased ninefold, and it signed 123 net new deals with annual contract value above $1 million, up nearly 40% from a year earlier.