ServiceNow stock hits all-time high amid AI demand

• ServiceNow beat earnings and revenue estimates on rising demand for its artificial intelligence platform.

• The enterprise software company raised its full-year subscription revenue forecast and shares traded at an all-time high.

• ServiceNow also said that former Google Cloud and Oracle executive Amit Zavery would become its new CPO and COO.

ServiceNow shares (NOW) traded at an all-time high on Thursday, a day after the software and IT services provider reported better-than-expected results and raised its forecast as demand for its artificial intelligence (AI) platform boomed.

The company reported third-quarter adjusted earnings per share (EPS) of $3.72, with revenue increasing 22% year-over-year to $2.80 billion. Both exceeded forecasts. Subscription revenue rose 23% to $2.72 billion, and professional services and other revenue rose 14% to $82 million.

Chief Executive Officer (CEO) Bill McDermott said that both existing and new customers are “doubling down on their investments in ServiceNow as an AI platform for business transformation.” Gina Mastantuono, Chief Financial Officer (CFO), added that the release of the new Xanadu platform “represents our most comprehensive set of new AI innovations to date, further driving our sustained revenue growth and margin expansion.”

The company now expects full-year subscription revenue in the range of $10.655 billion to $10.660 billion, up from its previous forecast of $10.575 billion to $10.585 billion.

Along with the financial news, ServiceNow announced that former Google (GOOGL) Cloud and Oracle (ORCL) Managing Director Amit Zavery would become the new Chief Product Officer and Chief Operating Officer from October 28th.

ServiceNow shares recently rose 5.5% to $957.47, after previously hitting an all-time high of $979.78. They have increased more than a third of their value this year.

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