ServiceNow Reports Earnings. Second Quarter Was ‘Spectacular,’ Says CFO.

“Q2 was a spectacular quarter across the board,” ServiceNow CFO Gina Mastantuono said. (Dreamstime)

ServiceNow stock soared after the company reported better-than-expected financial results and raised its full-year subscription revenue guidance as demand for its artificial-intelligence-powered enterprise software remains strong.

ServiceNow posted second-quarter adjusted earnings of $4.09 a share on revenue of $3.22 billion. Analysts surveyed by FactSet were expecting earnings of $3.57 a share on revenue of $3.12 billion.

In the same period last year, the company reported earnings of $3.13 a share on revenue of $2.63 billion.

Second-quarter subscription revenue of $3.11 billion rose 23% from the same period last year and beat analyst estimates of $3.03 billion.

“Q2 was a spectacular quarter across the board,” CFO Gina Mastantuono said in an interview with Barron’s. “We significantly beat the high end of both the top line and the profitability metrics.”

ServiceNow also said it now expects full-year subscription revenue to be between $12.775 billion and $12.795 billion, which is above prior estimates of $12.64 billion to $12.68 the company guided for last quarter.

ServiceNow stock was up 7.2% after the stock market closed following the results.

Shares of ServiceNow have had a rocky year. The stock dropped along with the broader market in April following President Donald Trump’s initial reciprocal tariff announcements. Wall Street was concerned that software customers would pull back spending to offset rising costs caused by increased import taxes.

The stock has since risen 33% from its 52-week closing low of $721.65, hit on April 4, according to Dow Jones Marker Data. While tariff policies have continued to evolve, ServiceNow continues to report solid financials that have reinvigorated investor sentiment. Still, worries that customers might cut budgets remain. Shares are down 9.4% this year to $957.10.

ServiceNow also trades at 52.1 times earnings expected over the next 12 months, compared with the 22 times forward earnings valuation of the S&P 500 .

Mastantuono told Barron’s that she is confident in ServiceNow’s ability to grow in uncertain economic times since the company offers software—specifically AI powered software—that’s meant to improve efficiency and bring down costs. Now Assist is the company’s generative-AI offering that is meant to improve productivity across various workflows within the company’s existing platform.

“Despite potential uncertainty around tariffs, if they’re [companies] not leaning into this AI moment, they’re going to be left behind,” Mastantuono said.

Write to Angela Palumbo at angela.palumbo@dowjones.com