ServiceNow has revealed a bumper set of second-quarter financial results, thanks in part to a boost from artificial intelligence – with share prices jumping 7% in extended trading amid the news.
The business transformation platform reports that it is exceeding guidance across all Q2 2025 topline growth and profitability metrics, including total revenues of $3.2B – representing 22.5% year‑over‑year (YOY) growth, or 21.5% in constant currency (CC).
ServiceNow has current remaining performance obligations of $10.92B as of Q2 2025, representing 24.5% YOY growth (21.5% in CC).
The company also increased its annual subscription revenue forecast to between $12.78B and $12.80B. Prior expectations were between $12.64B and $12.68B.
ServiceNow also revealed that the number of customers with more than $20M in ACV grew by more than 30% year‑over‑year, and reported subscription revenues of $3.1B – representing 22.5% in YOY growth (21.5% in CC).
NOW share value rose to above the $1,024 USD region in extended trading, representing an increase of around 7%.
Bill McDermott: ‘AI Underpins Good Results’
Chairman and CEO Bill McDermott said: “ServiceNow’s outstanding second quarter results continue our long track record of elite-level execution.
“Our beat‑and‑raise quarter showcases the mission‑critical nature of the ServiceNow AI Platform. Every business process in every industry is being refactored for agentic AI. ServiceNow has never been more differentiated as a full-stack agentic operating system for the enterprise.”
Bill McDermott told MarketWatch that artificial intelligence had underpinned the recent results, with AI deals up 50% sequentially in the second quarter. He said: “The AI revolution is in full flight and knows no boundaries.”
As of June 30, 2025, current remaining performance obligations (cRPO), contract revenue which will be recognized as revenue in the following 12 months, was $10.92B, representing 24.5% YOY growth and 21.5% in CC.
The company had 89 transactions over $1M in net new annual contract value (ACV) in Q2. It finished the quarter with 528 customers with more than $5M in ACV, representing approximately 19.5% YOY growth.
ServiceNow President and CFO Gina Mastantuono said: “Q2 was a spectacular quarter across the board, as we significantly beat the high end of our guidance across all topline and profitability metrics.
“Now Assist continued to surpass net new ACV expectations, fueled by an increase in both deal volume and size quarter‑over‑quarter, putting us firmly on track to hit our $1B Annual Contract Value (ACV) target by 2026. With a robust pipeline and expanding market opportunities, including strong momentum in CRM, we are well‑positioned for the second half of the year.”
A Big Year for ServiceNow
This year, ServiceNow introduced its AI Control Tower and AI Agent Fabric, which provide organizations with a centralized system to govern, orchestrate, and scale AI agents across.
It also expanded its data capabilities with the launch of Workflow Data Network, which ServiceNow describes as a new partner ecosystem to unify data, improve governance, and fuel AI‑powered decision‑making with real‑time intelligence.
ServiceNow also launched new CRM AI Agents and expanded CPQ capabilities, which let businesses sell, fulfill, and service customers from a single AI‑powered platform.
The company also launched ServiceNow University, where learners can choose from hundreds of courses and assessments to build digital skills for the AI era.
Final Thoughts
With such positive results, it’s hard to argue with Bill McDermott’s comments that the AI revolution “is in full flight”.
Skeptics often throw around the word “bubble” when talking about AI usage, and this must always be considered, of course, but so too should the word “snowball”.
Could it be that this is merely the beginning, and, as more and more businesses integrate AI effectively, the demand from competitors grows too, and so on?
Whatever the future may hold, the present does very much appear to be an “AI revolution in full flight”.