ServiceNow stock jumps on strong revenue as company shrugs off AI disruption fears

What happened: ServiceNow (NOW) gained 3% successful aboriginal trading connected Thursday.

What's down the move: The Santa Clara, Calif.-based bundle institution reported quarterly subscription gross and bookings that topped expert expectations, reinforcing capitalist optimism that its artificial quality offerings are helping thrust growth.

Subscription gross climbed astir 25% twelvemonth implicit twelvemonth to $3.88 cardinal past quarter, portion existent remaining show obligations (cRPO), a cardinal metric of near-term bookings, roseate 21% to $13.2 billion.

Management highlighted that request for the company's AI products continues to outperform expectations, highlighting ServiceNow's wide lawsuit demand, coagulated execution, and operating leverage.

What other you request to know: ServiceNow and different bundle firms person been aggressively promoting the integration of generative AI tools into their platforms arsenic the manufacture has travel nether scrutiny earlier this twelvemonth implicit concerns of AI disruption to their concern models.

ServiceNow, which offers workflow absorption tools to endeavor customers, has seen its banal plummet 37% twelvemonth to date.

Shares of bundle peers roseate connected Thursday, including Salesforce (CRM), Snowflake (SNOW), Adobe (ADBE), and Workday (WDAY). The Tech-Software Sector ETF (IGV) besides edged higher.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

Click present for the latest exertion quality that volition interaction the banal market

Read the latest fiscal and concern quality from Yahoo Finance