April 24 - ServiceNow (NOW, Financial) shares surged nearly 15% on Thursday morning after the company posted robust first-quarter 2025 results and emphasized expanding AI agent capabilities despite global uncertainties.
CEO William McDermott said ServiceNow is doubling down on automation and digital transformation, even as clients navigate tariff pressures and supply chain volatility. "We see challenges as opportunities," McDermott said during the earnings call, citing strong demand for its AI-driven platform across sectors.
In the public sector, the company reported over 30% year-on-year growth in the U.S., securing six new customers, including one federal agency. Eleven federal contracts exceeded $1 million, up from eight a year earlier; two of those deals topped $5 million.
McDermott noted that ServiceNow is aligned with U.S. policy trends, including the Trump Administration's push for government efficiency. One agency is already using its AI agents to streamline contract management and reduce costs.
The company launched its “Yokohama” platform during the quarter, integrating data, workflows, and AI agents. Competition is intensifying with similar offerings from Microsoft (MSFT, Financial), Salesforce (CRM, Financial), and Palantir (PLTR, Financial).
