Cloud-based technology platform ServiceNow posted a surge in AI contract revenue in the second quarter as the company continued to reinvent itself.  

ServiceNow, which automates and manages enterprise workflows spanning IT, sales, human resources, customer service and other departments, reported $1 billion in annual contract revenue for its AI products, up more than 40% quarter over quarter, President and Chief Financial Officer Gina Mastantuono said during the company’s July 22 earnings call.  

ServiceNow completed its transition to an AI-native company in Q2, making its agentic solutions “more accessible across the customer base,” as evidenced by deal volume among first-time agentic AI buyers “growing over 45% year over year,” Mastantuono said.  

Other AI highlights outlined during the call included:

• A ninefold increase in deployed AI agents over the past nine months;
• Doubling the percentage of renewal customers purchasing agentic AI products QoQ and YoY;
• A more than fivefold jump in deals with at least five AI products, tripling the number of $1 million-plus deals; and
• Growing deal volume by more than 150% QoQ for EmployeeWorks, an AI tool that allows employees to quickly retrieve information and execute multistep tasks through natural language processing.  

ServiceNow customers that hadn’t begun their AI journey are now “signing up fast,” Chief Executive William McDermott said during the call.  

“Most customers are now completely allergic to anything that looks like a project,” he said. “They only want deterministic. ServiceNow only does deterministic.”  

Banks that use ServiceNow include BMO, Citi, M&T Bank, Lloyds, KeyBank and Fifth Third Bank. The company also works with payments network Visa and fintech Fiserv.  

ServiceNow’s AI tools for financial services include Now Assist, which uses generative AI and agentic AI to automate processes, summarize complex data and accelerate task resolution. It also offers solutions for compliance, insurance and accounting workflows.  

Cybersecurity solutions 

Surging demand for AI governance and risk management tools has helped the company grow its $1 billion-plus cybersecurity business at a rapid pace over the past several months, McDermott said.  

“Our customers want every AI in the enterprise to be visible, governed and secured in one command center,” he said. “Native or third-party, they don’t want any blind spots.” 

ServiceNow’s acquisitions of AI-native identity security platform Veza and cybersecurity platform Armis, completed in March 2026 and December 2025, respectively, also are helping the company meet these demands, McDermott said.  

“There’s 2.2 billion agents entering the enterprise globally,” he said. “That’s 2.2 billion new identities, one-fourth of today’s human population. Veza maps access across human, machine and AI identities.  

“We’ll have 40 billion connected devices in the world in the next four years. Armis already tracks 7 billion of those devices in real time.” 

BY THE NUMBERS: Santa Clara, Calif.-based ServiceNow’s other Q2 results included:

• Total revenue increased 24% YoY to $4 billion;
• Subscription revenue rose 24.5% YoY to $3.9 billion;
• Research and development expenses climbed 24.7% YoY to $915 million; and
• Net income totaled $298 million, down 22.6% YoY.  

Register here for the FinAi Lending Summit, set for Oct. 7-8 in Las Vegas.