{"id":2562,"date":"2026-07-22T20:35:22","date_gmt":"2026-07-22T20:35:22","guid":{"rendered":"https:\/\/americanhomejournals.com\/?p=2562"},"modified":"2026-07-22T20:35:22","modified_gmt":"2026-07-22T20:35:22","slug":"servicenow-pushes-back-on-ai-threats-reporting-a-25-jump-in-subscription-revenue","status":"publish","type":"post","link":"https:\/\/americanhomejournals.com\/?p=2562","title":{"rendered":"ServiceNow pushes back on AI threats, reporting a 25% jump in subscription revenue"},"content":{"rendered":"
\n

ServiceNow reported results that met or exceeded Wall Street expectations as the corporate software company grapples with concerns about AI’s impact on its future prospects.<\/p>\n

Read more In modern homes, a TV needs to be more than just a screen. Here\u2019s how Samsung Mini LED TVs take it to the next level.<\/a><\/p>\n

Subscription revenue rose 25% to $3.9 billion, slightly ahead of TD Cowen’s forecast of about $3.8 billion.<\/p>\n

Current remaining performance obligations, a key measure of contracted future revenue, reached $13.2 billion. TD Cowen was looking for $13 billion in cRPO.<\/p>\n

ServiceNow also raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion.The upper end of this forecast matched TD Cowen’s expectations.<\/p>\n

The stock popped more than 5% in after-hours trading, following the results. However, the company’s shares have slumped 50% in the past year amid concerns that generative AI could replace some corporate software services.<\/p>\n

The latest example of this arrived on Wednesday morning when OpenAI unveiled Presence. This new offering helps companies set up and run AI agents to help automate tasks such as customer support, sales, and resolving employee IT service requests.<\/p>\n

Read more Monday.com plans 20% layoffs citing an \u2018AI-driven growth strategy.\u2019 Read the co-CEO\u2019s memo to employees.<\/a><\/p>\n

In response to AI offerings like these, ServiceNow is building AI into existing products and rolling out new AI-powered offerings. The software company said its AI business surpassed $1 billion in annual contract value during the second quarter.<\/p>\n

ServiceNow customers with AI agent deployments in production have increased ninefold over the past nine months, while the company said it signed 123 deals worth more than $1 million in net new annual contract value, up nearly 40% from a year earlier.<\/p>\n

Chief Executive Bill McDermott said businesses increasingly need software that governs AI systems rather than simply running AI models.<\/p>\n

He positioned ServiceNow’s AI Control Tower as a product that does exactly that by managing AI agents regardless of which model or chip corporate customers choose.<\/p>\n

Sign up for BI’s Tech Memo newsletter <\/em><\/strong>here. Reach out to me via email at <\/em><\/strong>abarr@businessinsider.com.<\/em><\/strong><\/p>\n

Read more OpenAI\u2019s latest proposal shows it\u2019s very aware that data centers are unpopular<\/a><\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

ServiceNow reports Q2 results, raises guidance, and says its AI business topped $1 billion in annual contract value.<\/p>\n","protected":false},"author":1,"featured_media":2561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nServiceNow pushes back on AI threats, reporting a 25% jump in subscription revenue - American home journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/americanhomejournals.com\/?p=2562\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ServiceNow pushes back on AI threats, reporting a 25% jump in subscription revenue - 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