ServiceNow Stock Hits All-Time High on AI Demand

Shares of ServiceNow (NOW) traded at an all-time high Thursday, a day after the software and IT services provider posted better-than-expected results and boosted its guidance as demand for its artificial intelligence (AI) platform boomed.

The company reported third-quarter adjusted earnings per share (EPS) of $3.72, with revenue rising 22% year-over-year to $2.80 billion. Both exceeded forecasts. Subscription revenue gained 23% to $2.72 billion, and professional services and other revenue was up 14% to $82 million. 

CEO Says Customers ‘Doubling Down’ on ServiceNow as AI Platform

Chief Executive Officer (CEO) Bill McDermott said both existing and new customers are “doubling down on their investments in ServiceNow as the AI platform for business transformation.” Chief Financial Officer (CFO) Gina Mastantuono added that the release of its new Xanadu platform “marks our most comprehensive set of new AI innovations yet, further fueling our durable topline growth and margin expansion.”

The company now sees full-year subscription revenue in the range of $10.655 billion to 10.660 billion, up from its previous outlook of $10.575 billion to $10.585 billion.

Along with the financial news, ServiceNow announced that former Google (GOOGL) Cloud and Oracle (ORCL) executive Amit Zavery would become the new Chief Product Officer and Chief Operating Officer beginning on Oct. 28. 

ServiceNow shares recently were up 5.5% to $957.47 after earlier touching an all-time high of $979.78. They have added more than a third of their value this year.