ServiceNow Reports Q2 Revenue Growth to $3.99 Billion

ServiceNow reported second-quarter earnings featuring 24% year-over-year revenue growth to $3.99 billion and adjusted earnings per share of $0.90, both of which surpassed analyst expectations. Subscription revenue rose 25% to $3.88 billion, while the company's AI annual contract value increased 40% quarter-over-quarter to more than $1 billion.

The company's cybersecurity business reached a $1 billion valuation, and its customer relationship management business grew to a $2 billion annual contract value. Based on these results, the company raised its full-year subscription revenue guidance to a range between $15.76 billion and $15.78 billion, reflecting a projected 22.5% growth rate.

Despite the positive financial reports, the company's stock has declined 40% this year. This downturn occurs as investors express concerns that artificial intelligence may disrupt the software layer.