ServiceNow Inc

Strong Q1 Performance: ServiceNow reported its highest ever Q1 for net new Annual Contract Value (ACV), with a 20% year-over-year growth in subscription revenue (constant currency) totaling $3.005 billion. Remaining performance obligations (RPO) rose 25.5% year-over-year, reaching approximately $22.1 billion, indicating robust demand and a healthy pipeline.

Guidance Revisions: ServiceNow raised its full-year subscription revenue guidance by $5 million at the midpoint to $12.64 billion to $12.68 billion, reflecting 18.5% to 19% year-over-year growth. For Q2, they expect subscription revenues between $3.030 billion and $3.035 billion, representing around 19% to 19.5% year-over-year growth.

AI Emergence and CRM Expansion: The adoption of ServiceNow's AI solutions, with Pro Plus deals quadrupling year-over-year, indicates a strong push towards AI-driven efficiency across workflows. ServiceNow also plans strategic acquisitions (e.g., Moveworks and Logic.ai) aiming to capture significant market share in CRM and enhance integration capabilities, moving beyond fragmented legacy systems.