ServiceNow CEO says the company is taking advantage of the rapid economic upheaval.
Many CEOs have Warned using quarterly revenue calls The Trump administration’s tariff policies and subsequent economic uncertainty will be bad for businesses. But it’s not ServiceNow CEO Bill McDermott.
McDermott says the current macroeconomic upheaval caused by Trump’s policies could actually boost ServiceNow’s business even further.
reason? To better control costs, businesses are considering consolidating their technology stacks and looking to just a handful of platforms that can be used across their organization, rather than buying multiple niche software solutions, McDermott said. luck An interview just before Wednesday’s interview Quarterly Revenue Releases.
“Companies have uncertainty about the global economy, so they are looking at OPEX, looking at margin profiles, and focusing on efficiency and effectiveness,” he said. “They can integrate so many costs, take so many costs with ServiceNow, implement very quickly, get (return on investment) very quickly. They love it.”
Still, McDermott said yesterday that Guidance ServiceNow went to the market for future revenues. “Our business is still strong, but we only flow some of those profits into our year-round outlook. This allows us to consider the potential risks associated with the current geopolitical environment,” the company said in its revenue release.
The company has told the market it expects revenue to grow from 18.5% to 19% to $12.6 billion for the full year. This means that the company will essentially maintain sales growth of 18.5% year-on-year, as seen in the first quarter. ServiceNow investors have so far won a tough 2025 2025 and are concerned about the impact of Trump’s policy, including cutting government spending on software, helping to push down more than 20% from the $1,170.39 record high that reached January 28th.
McDermott said luck He hopes ServiceNow customers will continue to implement digital transformation projects, particularly to continue investing in artificial intelligence in the future. “There is a $4 trillion (market size in terms of business spending) with AI between now and 2030, and it is proven based solely on this quarter. This quarter literally quadrupled annual AI revenue.
The CEO said ServiceNow, originally known for automating the handling and resolution of companies’ IT support requests, has won market share with rival customer relationship management (CRM) solutions. Salesforce. He said 16 of ServiceNow’s 20 biggest deals in the quarter were due to CRM solutions.
Both ServiceNow and Salesforce have made a big push to selling AI “agents” that automate workflows for customers. ServiceNow announces plans Get MoveWorks Companies that help develop AI agents to solve IT and HR tasks and questions have won for $2.85 billion for $2.85 billion to enhance the delivery of agent AI. We also acquired Logik.ai, a company that uses AI to help salespeople cite complex product offerings, and added a CRM feature.
McDermott said that ServiceNow’s ability to provide a single platform across all functional areas of its customers, rather than offering siloed products for sales, HR, IT and operations, makes it easier for businesses to implement AI agents with ServiceNow than their rivals. “Consult with a big company and choose someone. They tell you that they have 50 to 100 Salesforce instances. How do you apply the agent to 50 unintegrated instances? Do you wish them good luck?
In another interview with Business Insider, McDermott said the company has not been affected by the reductions in government contracts mandated by the Department of Government Efficiency (DOGE), which previously targets software licensing as an area to reduce federal spending.
For now, ServiceNow’s business momentum appears strong. In the first quarter, the company announced earnings per share, surpassing analyst consensus forecasts by 5%, breaking market expectations in both sales and profits. For the three months ended March 31, the company used standard GAAP accounting to earn a net profit of $460 million with total revenue of $3.09 billion. The company also reports that more than $22 billion in revenue and 508 customers already booked in the pipeline have an annual contract value of more than $5 million, an increase of more than 20% year-on-year. ServiceNow shares rose 11% after trading on Wednesday night after the announcement.
This story was originally introduced Fortune.com