ServiceNow's AI Traction Boosts Growth

0:00Service now just drops some strong numbers from their fourth quarter, showing their AI tool, NALASIST, is turning into real-paid revenue. Net new annual contract value for it, more than doubled year over year, on top of subscription revenue hitting $3,466 million, up 21% from last year. That's a clear sign AI ain't just hype, it's boosting their massive base. Meanwhile, their backlog keeps growing faster than sales, with current remaining performance obligations of 25% to $12 billion, $850 million, and total remaining performance obligations, climbing 26.5% to $28 billion to $100 million. This means customers are locking in big commitments, no signs of budget cuts slowing things down. Big enterprises are the real story here, they're expanding across workflows like IT operations management, security ops, and customer service. Management.

1:00Morgan Stanley's checks show demand-holding steady, or even picking up, turning service now into a full platform that's tough to ditch once it spreads. Looking ahead to first quarter earnings on April 22nd, eyes are on whether NALASIST's usage ramps up for extra consumption revenue, and if. Large deals keep showing multi-work flow winds. Global renewals and backlog converting strong would ease any stock worries. Bottom line. Service NALAS AI traction plus solid demand signals point to lasting growth if they keep converting that backlog and nailing enterprise. Upsells setting them up as a leader in this space. This has been Durham News Today, powered by AI. I'm Corey with the story.