ServiceNow Raises Annual Forecast after Beating Q3 Profit Estimates due to Strong AI Demand

Strong demand for artificial intelligence-related products and workflow automation boosts ServiceNow's Q3 revenue to $2.29 billion, leading to a raised forecast for 2023 subscription revenues at $8.64 billion.

ServiceNow has raised its annual subscription revenue forecast for 2023 from a previously expected $8.58 billion - $8.60 billion to up to $8.64 billion, driven by strong demand for AI and automation services.
The company's Q3 profits beat estimates, with adjusted earnings of $2.92 per share compared to the projected $2.56 per share, benefiting from increased enterprise spending on generative AI products and workflow automation.
ServiceNow's Q3 revenue came in at $2.29 billion, which is higher than analysts' estimates of $2.27 billion, while their subscription revenue was $2.22 billion, also surpassing estimates of $2.19 billion.
The firm has partnerships with companies such as Nvidia and Accenture, which have further boosted its revenue.
The company's software helps streamline the handling of different software applications for companies, contributing to its 25% revenue growth rate in line with the past few quarters.