ServiceNow’s CEO says company is capitalizing on economic upheaval—and projects revenue growth of more than 18% this year
Many CEOs used their quarterly profit calls to warn that the tariff policy followed by the Trump administration, and the economic uncertainty that followed, will be bad to work. But not the CEO of Servicenow, Bill Makdirmout.
McCdirmot says that the current total economic turmoil caused by Trump’s policies can actually provide an additional batch of Servicenow’s business.
the reason? To improve control costs, companies are looking to unify their technology staple, and to turn into a handful of platforms that can be used across the institution, instead of buying multiple specialized software solutions, luck Wednesday in an interview before announcing the company’s quarterly profits.
He said: “Companies have uncertainty in the global economy, which is why they look at Opex, and they are looking for their margins, and they focus very on efficiency and effectiveness.” “They can unite a lot of cost, take a lot of cost with servicenow, implement so quickly, and get a [return on investment] So quickly, they love it. “
However, MCDERMOTT said that Servicenow directed the market yesterday about its future profits reflects uncertainty about the effect of Trump’s policies. “Although our actions are still strong, we only flow, although part of these benefits are in our full expectations. This allows us to move in potential risks because it relates to the current geopolitical environment.”
The company told that the market expects revenue to grow by 18.5 % to 19 % for the whole year to 12.6 billion dollars, which means that the company will mainly maintain the growth of sales of 18.5 % on an annual basis. Investors from Servicenow 2025 have had difficult until now, with concerns about the impact of Trump’s policies, including discounts on government spending on programs, helping to push the company’s shares to more than 20 % of the highest level ever reached $ 1,170.39 on January 28.
Makdirmout said luck Servicenow customers are expected to continue implementing digital transformation projects, and in particular he will continue to invest in artificial intelligence to move forward. “We have 4 trillion dollars [forecast total market size in terms of business spend] The market has proven with artificial intelligence from now to 2030, and Servicenow has proven, based on this quarter alone, where we literally made artificial intelligence revenues throughout the year, and that we have become a standard for the AI and Enterprise program of degree. “
The CEO said that Servicenow, who was already known for automating automation and solving information technology support requests, is increasingly winning customer relationship management solutions (CRM) from the Slesforce competition. He said that 16 of the 20 largest deals of Servicenow for a quarter were for CRM Solutions.
Servicenow and Salesforce made a large boost in the sale of artificial intelligence agents that are automated by the workflow of customers. Servicenow has announced plans to get Moveworks for Tart Anti -IQs to help solve them, human resources tasks and questions, for $ 2.85 billion to help boost AI AGE offers. She also got Logik.ai, a company that uses artificial intelligence to help sales representatives quote complex products offers, to add them to CRM capabilities.
MCDERMOTT says Servicenow’s ability to provide one platform in all customer functional areas, instead of offering poor sales, human resources, information technology and operations, means that companies can easily implement artificial intelligence agents with Servicenow more than their competitor. “Speak to a big company, choose anyone, who will tell you that they have 50 to 100 cases of Salesforce. How will you apply the agents to 50 incomplete cases? Good luck. So they want a clean platform with a pure Amnesty International’s ability to fulfill and serve a single common structure, and we do it at a much lower cost.”
In a separate interview with Business Insider, MCDERMOTT said that the company has not yet been affected by discounts in government contracts incurred by the Ministry of Government efficiency (DOGE), which targets software licenses as a field to reduce federal spending.
Currently, Servicenow’s business momentum looks strong. For the first quarter, the company announced the profits of one stock that topped the forecasts of the consensus by 5 % and the market expectations for both sales and profits. During the three months ending March 31, the company achieved $ 460 million of net income on the total revenue of $ 3.09 billion, using standard GAAP accounting. The company also stated that it has more than $ 22 billion of sales that have already been booked in the pipeline and 508 customers with more than $ 5 million in the annual contract value, an increase of more than 20 % on an annual basis. Servicenow shares increased by 11 % after trading hours on Wednesday evening after the announcement.
This story was originally appeared on Fortune.com
2025-04-24 12:27:00
