ServiceNow Grows Backlog 25% to Nearly $28 Billion as AI Fears Knock Shares 42% Lower
Updated
Updated · The Motley Fool · Jun 2
ServiceNow Grows Backlog 25% to Nearly $28 Billion as AI Fears Knock Shares 42% Lower
3 articles · Updated · The Motley Fool · Jun 2
Summary
Nearly $28 billion in backlog and 22% subscription-revenue growth in the latest quarter signaled that enterprise customers are still committing heavily to ServiceNow despite worries about AI disruption.
16 deals worth $5 million or more in new annual contract value helped drive that momentum, while Now Assist customers spending at least $1 million jumped 130% from a year earlier.
ServiceNow is pushing beyond IT workflow automation into governing and securing AI agents across enterprise systems, positioning its platform as infrastructure for scaled AI deployment.
Shares remain almost 42% below their prior peak, leaving the stock at about 30 times forward earnings versus a historical level often above 40, even as management pegs its addressable market above $600 billion.