ServiceNow invested $40 million in Indian banking software specialist BusinessNext, valuing the firm at $700 million for a 5% stake. This strategic partnership aims to deepen ServiceNow's push into global financial services by leveraging BusinessNext's AI-driven banking expertise and ServiceNow's sales network.
ServiceNow CEO Bill McDermott stated that rapid AI adoption is strengthening the company's competitive position, contrasting with a recent OpenAI AI agent incident. He dismissed 'SaaSpocalypse' concerns, citing longer contract terms and increased demand for ServiceNow's software due to more AI incidents, after the company reported better-than-expected earnings.
ServiceNowは、AIエージェントのオーケストレーションとLLM統合管理を行う「AI Control Tower」を発表。顧客のAIに対する不安に応え、CMDBの知見を応用。AI Specialistによる業務効率化と、Armis、Vesa、Moveworks買収による戦略的強化も進める。
Cloud tech giant ServiceNow disclosed a bug allowing unauthenticated internet access to customer data. The company stated security researchers, not bad actors, discovered the issue while seeking bug bounties. The bug affected Australia releases, but users report wider impact.
ServiceNow and Accenture have launched a "Forward Deployed Engineering" (FDE) program to help companies move from AI agent pilot projects to full-scale enterprise adoption. The program aims to overcome the "wall" between validation and full deployment by having joint FDE teams work within customer environments to build and test AI workflows on the ServiceNow AI Platform.
ServiceNow CEO Bill McDermott argues AI is a structural solution for labor shortages, not just an efficiency tool. He highlighted the "AI Control Tower" vision and acquisitions like MoveWorks to manage agents, emphasizing ServiceNow's role in executing actions while AI thinks. McDermott also expressed confidence in ServiceNow's competitive edge in ITSM, CRM, and security, projecting significant growth.
ServiceNow announced new features at Knowledge 2026 to help businesses integrate AI agents by breaking down data silos. The new functions focus on data capabilities for operating autonomous AI in business operations with real-time, governed enterprise data, addressing the issue of AI being able to recommend but not execute.
Anthropic CEO Dario Amodei predicts AI will make software virtually free, jeopardizing careers in coding. He warned SaaS companies relying on code complexity as a competitive advantage could fail, citing stock declines in ServiceNow, Snowflake, and Microsoft, while Anthropic aims for a $900B valuation.
Software stocks tumbled Thursday as ServiceNow sank 17% (its worst day ever) and IBM dropped 9%, fueling concerns that AI tools from Anthropic and OpenAI will disrupt the cloud subscription model. Workday fell 10% and is down over 45% this year, while the iShares Expanded Tech-Software ETF fell 5% and is down 18% annually. Big tech giants Alphabet, Amazon, Meta, and Microsoft report Wednesday, with Apple following Thursday.
Stocks were little changed as the S&P 500 and Nasdaq resumed their upswing to record highs. Jim Cramer discussed the rotation from software to hardware following ServiceNow's 17% post-earnings plunge, which cited Iran war as a drag on subscription revenue. Newest Club pick Arm jumped roughly 6% to new all-time highs, up 20% since initiation three days ago, though Cramer expressed concern about CEO Rene Haas' expanded role at SoftBank. Procter & Gamble rose over 1% ahead of Friday earnings.
ServiceNow CEO Bill McDermott told CNBC the Middle East delays tied to the Iran war are a timing issue, not demand deterioration. The software company's Q1 subscription revenue grew 19% constant currency despite a 75 basis point headwind from delayed Middle East deals. Shares fell 13% after hours though results beat Wall Street expectations. McDermott also pushed back on AI disruption concerns, calling it a 'tailwind' for the company.
ServiceNow reported Q1 adjusted EPS of 97 cents, beating the 96-cent estimate, with revenue of $3.77 billion versus $3.74 billion expected. The company raised its FY2026 subscription revenue guidance to $15.74-$15.78 billion, citing strong AI product demand despite a 75 basis point headwind from the Middle East conflict. Net income rose to $469 million, and the company completed its $7.75 billion Armis acquisition.
