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last mo.

ServiceNow Surges on Strong Q1 Results and Raised Growth Outlook

The enterprise software leader beats earnings expectations, grows public-sector sales by 30%, and lifts full-year guidance to nearly 19% growth.

ServiceNow CEO Bill McDermott says if economic uncertainty forces businesses to get more efficient, his company's sales could actually benefit.
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Overview

  • ServiceNow reported $3.09 billion in Q1 revenue and $460 million in net income, exceeding Wall Street expectations.
  • The company raised its full-year revenue guidance to 18.5%–19%, projecting $12.6 billion in 2025 sales.
  • U.S. public-sector sales grew over 30% year-over-year, with 11 federal deals exceeding $1 million despite federal spending cuts under DOGE.
  • ServiceNow quadrupled its AI revenues year-over-year and strengthened its AI capabilities with acquisitions of Moveworks for $2.85 billion and Logik.ai.
  • The company’s sales pipeline reached $22 billion, with 508 large customers generating over $5 million annually, up 20% year-over-year.