ServiceNow, Inc. Discusses AI-Driven Growth and Strategic Initiatives at Bank of America Global Technology Conference 2025

Key Takeaways

TL;DR: ServiceNow delivered a strong Q1 performance fueled by its AI-first strategy, robust expansion into non-IT workflows (e.g., CRM, HR, finance), and efficient customer-led innovation. Their platform upgrades—esp. around agentic AI, Now Assist, and autonomous IT—are compressing time-to-value and expanding the total addressable market (TAM), positioning ServiceNow to capture significant incremental rev. and market share across key verticals globally.

• Q1 Performance & Spending Environment
  • Strong Q1 results: Maintained rev. momentum (~$800M reported rev.) with robust pipeline and no slowdowns despite broader macro uncertainties.
  • Federal biz grew +30% YoY and manufacturing remains a strength; rising IT and software spend (IT spend grew to +8.1% and software spending to +12.2% YoY) underscores accelerating enterprise tech investments.
  • Customers are increasingly focused on quick ROI, favoring shorter, AI-enabled projects over lengthy, legacy implementations.
• AI Integration & Monetization
  • Agentic AI & Now Assist: ServiceNow introduced new out-of-the-box agents and an agentic studio for customers to build custom solutions. They now target scaling from 100+ current agents to 1,000+ soon.
  • Rapid Deployment: Customers are deploying generative AI and agentic AI solutions in weeks not quarters. “AI is not optional,” emphasizing how these capabilities drive fast, measurable returns in multiple use cases.
  • Hybrid Pricing & Monetization: A hybrid pricing model links seat-based expansion with consumption packs for Now Assist, underpinning a rev. target of $1B by fiscal ‘26 (up from $250M today).
  • AI Control Tower: Introduced to allow enterprises to manage and orchestrate multiple AI use cases—covering machine learning, GenAI, and agentic AI—all on a unified platform.
• Business Workflows & Platform Expansion
  • Beyond IT to Business Workflows: Adoption beyond IT is evident—HR svc delivery up +40% YoY, finance and supply chain up +60%, and security grew by +200% YoY—as companies standardize operations across departments on one platform.
  • Creator Platform: Enables customers to digitize, tailor, and innovate workflows using a no/low-code approach with integrated generative and agentic AI capabilities, driving vertical-specific growth with verticals like transportation, logistics, and retail reporting +60% YoY growth.
• CRM & CPQ Enhancements
  • Expanding CRM Offering: ServiceNow’s CRM solution integrates a full end-to-end, AI-first approach—from presales to CPQ and post-sales—challenging legacy, siloed systems.
  • Rapid Sales Acceleration: “Configuration CPQ at the speed of thought” is delivering rev. acceleration by transforming CPQ from a back-office tool into an efficient, rev.-driving mechanism.
• Core IT, ITSM, & ITOM Evolution
  • Autonomous IT Vision: Emphasis on driving an “autonomous IT” environment—aiming for zero incidents, outages, and a zero-trust cyber framework.
  • Growth in ITSM/ITOM: ITSM continues to expand via seat expansion and new use cases; ITOM Pro Plus grew +70% Q/Q and Security Pro Plus saw a 4x increase Q/Q, highlighting customer demand for integrated, AI-enhanced IT operations.
• Go-to-Market Strategy & Sales Initiatives
  • Verticalization & International Expansion: Focus on vertical-specific solutions and deeper penetration in strategic accounts is paying off. Europe grew +30% YoY and ServiceNow enjoys 60% penetration in G2K accounts, with significant white space overseas.
  • Leadership Update: New go-to-market lead, Paul Fipps, brings a proven track record and will accelerate initiatives across AI, CRM, and data while reinforcing customer relationships and industry-specific solutions.
• Platform Strategy & Product Innovation
  • Customer-Led Innovation: ServiceNow’s growth is driven by customer innovation on its one, unified platform, enabling rapid development of new categories (e.g., ERP, finance, supply chain, observability) and seamless integration of acquired assets.
  • Observability & AI Ops: Acquisitions in observability are being integrated into an AI Ops offering to bring proactive, AI-first actions across cloud, on-prem, and IoT environments, crucial for the autonomous IT narrative.
  • Efficient Engineering Model: A unified platform reduces complexity and accelerates the rollout of new solutions, exemplified by rapid development cycles (e.g., a risk product built by 12 engineers).
• Partnerships & Ecosystem Growth
  • Critical Channel Partner Role: Partners are integral for scaling implementations and co-innovating industry-specific agentic solutions. Their involvement in the ServiceNow app store and solution development further amplifies the platform’s reach and capabilities.

Overall, ServiceNow’s call highlighted the strategic focus on integrating advanced AI capabilities with a robust, customer-led one-platform solution approach—positioning the co for exponential growth across multiple verticals and geographies.

Call Q&A

• Bradley Sills: Can you comment on the partner channel and how partners can help with the AI and Now Assist efforts?
  • Christopher Bedi: Partners are critical for scaling implementation. They help customers understand and take advantage of ServiceNow's capabilities. Partners co-innovate with us, building agentic agents on our platform and putting them on our app store. This collaboration is crucial for creating industry-specific agentic agents.
• Bradley Sills: Why did ServiceNow enter the observability category through acquisition, and how is that effort going?
  • Christopher Bedi: To achieve autonomous IT, organizations need all data signals. Observability helps distill signals from noise and take proactive actions using AI. Our svc observability will be part of our AI Ops offering, releasing more agentic agents specific to observability.
• Bradley Sills: Why did ServiceNow expand into ERP and IT asset management, and how is that effort going?
  • Christopher Bedi: Customers needed more speed, flexibility, and automation than traditional ERP systems offered. ServiceNow provides a more agile, AI-first platform. We have around 250 customers in finance and supply chain, with significant growth in use cases like procurement and accounts payable.