ServiceNow (NOW) investor relations material

Platform evolution and AI strategy

• The platform's unified architecture and workflow capabilities have enabled expansion across enterprise functions, with AI integration making it even more scalable and relevant for automation and productivity gains.

• Billions of workflows and trillions of transactions are managed annually, positioning the platform as a key enabler for autonomous work in the AI era.

• AI is expected to represent 30% of revenue by 2030, with current AI business on track to reach $1.5 billion this year.

• Security, risk, data, analytics, and CRM are targeted to grow over 25% annually, with AI infused throughout.

• Acquisitions like Armis and Veza enhance end-to-end security and governance, addressing customer concerns about AI deployment at scale.

Financial performance and capital allocation

• Top-line growth reached 23% in Q2, with headcount held flat due to $500 million in AI-driven efficiencies.

• AI investments are not crowding out other spend; customers increase budgets for products delivering rapid value.

• Capital allocation prioritizes organic innovation, followed by strategic tuck-in M&A and shareholder returns, including a $2 billion repurchase in Q1 and $4+ billion remaining authorization.

• Six organically built business lines now exceed $1 billion each, reflecting a strong innovation culture.

• Internal use of the platform has generated significant efficiency savings, supporting margin expansion and growth targets.

Product innovation and market opportunities

• Standardized AI-native bundles allow customers to adopt AI at their own pace, with Prime bundle upgrades delivering over 30% price uplifts.

• The AI Control Tower offers vendor-agnostic governance, spend management, and ROI tracking across the enterprise, differentiating from vertical-only solutions.

• Security and risk business, bolstered by acquisitions, now ranks among the top eight globally and drives cross-portfolio growth.

• Data and analytics capabilities enable seamless connection to any data source, driving both productivity and top-line growth.

• CRM business, enhanced by Logik.ai acquisition, surpassed $2 billion and supports complex workflows from quote to service.