ServiceNow Stock Soars as AI Demand Boosts Subscription Revenue

Shares of ServiceNow (NOW) soared to an all-time precocious aft nan IT services patient posted a large jump successful subscriptions gross arsenic it benefited from soaring request for artificial intelligence (AI) products.

ServiceNow reported second-quarter subscription gross jumped 23% year-over-year to $2.54 billion. Overall gross accrued 22% to $2.63 billion, and adjusted earnings per stock (EPS) came successful astatine $3.13. All 3 exceeded estimates.

Position arsenic 'AI Platform for Business Transformation Remains Stronger Than Ever'

Chief Executive Officer (CEO) Bill McDermott explained that nan company’s "relevance arsenic nan AI level for business translator remains stronger than ever arsenic CEOs are looking for caller vectors of growth, simplification, and digitization."

ServiceNow predicted current-quarter subscriptions gross would beryllium up 20% to 20.5% to a scope of $2.66 cardinal to $2.67 billion.

In addition, nan company’s president and Chief Operating Officer (COO) has near pursuing a hiring controversy. ServiceNow announced nan contiguous departure of CJ Desai, whom it said resigned by communal agreement. The move came months aft an soul investigation recovered Desai violated institution argumentation successful hiring nan erstwhile U.S. Army Chief Information Officer (CIO). ServiceNow said it believed that was “an isolated incident.”

ServiceNow shares soared much than 15% to $842.42 arsenic of 2:20 p.m. ET Thursday aft hitting an all-time precocious $850.33 earlier successful nan session.