ServiceNow Stock Soars as AI Demand Boosts Subscription Revenue [Video]

Shares of ServiceNow (NOW) soared to an all-time high after the IT services firm posted a big jump in subscriptions revenue as it benefited from soaring demand for artificial intelligence (AI) products.

ServiceNow reported second-quarter subscription revenue jumped 23% year-over-year to $2.54 billion. Overall revenue increased 22% to $2.63 billion, and adjusted earnings per share (EPS) came in at $3.13. All three exceeded estimates.

Chief Executive Officer (CEO) Bill McDermott explained that the company’s “relevance as the AI platform for business transformation remains stronger than ever as CEOs are looking for new vectors of growth, simplification, and digitization.”

ServiceNow predicted current-quarter subscriptions revenue would be up 20% to 20.5% to a range of $2.66 billion to $2.67 billion.

In addition, the company’s president and Chief Operating Officer (COO) has left following a hiring controversy. ServiceNow announced the immediate departure of CJ Desai, whom it said resigned by mutual agreement. The move came …