(Reuters) – ServiceNow reported quarterly revenue above Wall Street estimates on Wednesday, boosted by a growing demand for its artificial intelligence solutions.
The rising demand for workflow automation and the company’s continued efforts to expand its portfolio with new generative AI solutions helped drive growth.
“ServiceNow is already seeing our own significant productivity increases with the generative AI solutions we’re releasing to the market, which will rapidly accelerate breakthrough innovation for our customers,” said CEO Bill McDermott.
The company forecast third-quarter subscription revenue in the range of $2.19 billion to $2.20 billion. Analysts on average expected $2.15 billion, according to Refinitiv data.
Separately on Wednesday, ServiceNow also announced a program along with Nvidia and Accenture, called AI Lighthouse, designed to help the development and adoption of generative AI at enterprises.
ServiceNow’s overall subscription revenue for the quarter was $2.15 billion, higher than analysts’ average estimate of $2.13 billion, according to Refinitiv data.
On an adjusted basis, the company earned $2.37 per share during the quarter, compared with a profit estimate of $2.05 per share, according to Refinitiv.
ServiceNow’s shares were down more than 3% after the bell.
(Reporting by Yamini Kalia and Tanya Jain in Bengaluru; Editing by Pooja Desai)
