ServiceNow dips despite beat-and-raise quarter

ServiceNow (NYSE:) fell over 3% in after-hours Wednesday trading despite the company reporting better-than-expected and raising its full-year forecast.

The company reported adjusted EPS of $2.37 on revenue of $2.15 billion, topping the consensus for earnings of $2.05 per share on revenue of $2.13B. Subscription revenue rose 25% year-over-year to $2.08B.

“ServiceNow results were supercharged by unprecedented demand for our organic innovation,” said ServiceNow Chairman and CEO Bill McDermott.

“We’re in a powerful new ‘AI world,’ where imagination is the only limit. ServiceNow is already seeing our own significant productivity increases with the generative AI solutions we’re releasing to the market, which will rapidly accelerate breakthrough innovation for our customers.”

The remaining performance obligations were reported at $14.2B while the current remaining performance obligations (cRPO) was reported at $7.2B, both ahead of market consensus.

For this quarter, the company sees subscription revenue coming in at $2.19-2.2B, ahead of the consensus for earnings of $2.15B. As a result, the company hiked its full-year subscription revenue forecast to $8.59B, up from the prior $8.505B and the consensus of $8.51B.

cRPO is seen rising 25.5% YoY in Q3 after growing 25% in the previous quarter.