[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  TheValueist [@TheValueist](/creator/twitter/TheValueist) on x 1565 followers Created: 2025-07-23 23:27:31 UTC $NOW ServiceNow Q2 2025 Earnings Call: Comprehensive AI, Cloud Computing & NVIDIA Analysis Executive Summary ServiceNow's Q2 2025 earnings call revealed an aggressive AI-first strategy that positions the company as the central orchestration layer for enterprise AI deployments. The company has transformed from a workflow automation platform to what CEO Bill McDermott calls "the extensible AI operating system for the agentic enterprise." With AI Control Tower exceeding full-year targets in just XX days, Now Assist usage growing 9x in three months, and a deepening partnership with NVIDIA on custom LLMs, ServiceNow is capturing the enterprise AI transformation opportunity at an unprecedented pace. X. AI and Generative AI: Comprehensive Analysis XXX Core AI Platform Components AI Control Tower Performance: Exceeded initial full-year net new ACV expectations in just XX days since launch Function: Acts as the "central nervous system" for managing AI complexity across enterprises Capability: Manages both ServiceNow's own AI agents and third-party agents from OpenAI, Microsoft, and others Strategic Importance: Positions ServiceNow as the governance layer for all enterprise AI, not just their own products AI Agent Fabric Infrastructure layer for deploying AI agents across the enterprise Enables seamless integration of multiple AI agents working together Part of the complete agentic platform announced at the call AI Agent Studio No-code platform for creating AI agents Democratizes AI agent creation across the organization Enables business users to build agents without technical expertise XXX Now Assist Product Suite Performance Overall Metrics: Net New ACV "beat expectations once again in Q2" Largest Now Assist deal to date exceeded $XX million XX deals with X or more Now Assist products Usage increased 9x over the last three months Plus products included in XX of top XX deals Product-Specific Performance: ITSM Plus: Deal value quadrupled year-over-year CSM Plus: Deal value quadrupled year-over-year ITAM Plus: Deal value tripled year-over-year HRSD Plus: Deal value doubled year-over-year ITAM Now Assist: Net new ACV grew nearly 6x quarter-over-quarter with average deal sizes more than tripling Now Assist for SecOps and Risk: Combined net new ACV more than doubled quarter-over-quarter Creator Now Assist: Average deal sizes quadrupled year-over-year Key AI Pro Plus Metrics: Deal count up over XX% quarter-over-quarter Includes ITSM, CSM, and HR capabilities Consumption-based model showing strong adoption as usage scales XXX AI-Driven Internal Efficiency Gains Quantified Benefits: $XXX million in headcount savings projected for 2025 $XXX million total value from internal AI usage expected in 2025 XX% improvement in sales productivity through AI automation Over XX% of support functions now handled by AI agents Specific Applications: Engineering: Using Code Assist and Code Generation to "unlock significant capacity" Sales: XX% productivity improvement by eliminating setup work Support Functions: Customer support, IT support, risk compliance, security largely automated Now on Now Program: ServiceNow using its own AI innovations internally XXX Agentic AI Strategy and Vision McDermott's Vision Statement: "AI work is cross-functional work. ServiceNow integrates the entire tech stack on-prem or in the Cloud, any system, any LLM, any data source, and we bring all of that data into a single model." Key Agentic AI Concepts: XXXXXXX agents currently in workflow within ServiceNow internally Agentic Workforce Management: New standard for hybrid human-agent team leadership Agents that "team up, work together, and collaborate together across business processes" Vision of agents being "more collaborative and more team oriented and more results oriented than people" Customer Use Cases: Insurance: AI agents handling accident-to-claim settlement in real-time on mobile devices Multi-lingual Support: Agents communicating in any language on the fly Cross-functional Processes: Hire-to-retire, procure-to-pay, design-to-product, quote-to-cash workflows XXX AI Platform Differentiation "Any-to-Any" Integration Philosophy: Any Cloud: Works with all hyperscalers (AWS, Azure, GCP) plus Oracle Any Data Source: Integrates systems of record, data warehouses, data lakes Any LLM: Supports all major language models for different use cases Any Agent: Manages ServiceNow agents plus third-party agents Enterprise-Ready AI Capabilities: Domain-specific AI training by industry Secure, compliant, and regulated AI deployments "$1 trillion transactions, XX billion workflows" as training data Lightning-fast performance optimized for enterprise scale XXX Now Next AI Program Program Overview: Strategic customer-focused initiative to accelerate AI adoption Deploys engineering teams directly with customers C-suite level engagement for strategic AI transformation Focus on getting customers "live fast" with AI implementations Approach: Senior-level, strategic customer engagements Combines engineering, sales consulting, and solution consulting talent Top-down approach starting with C-suite rather than bottom-up Creates broader use cases and opportunities through strategic discussions X. NVIDIA Partnership Deep Dive XXX Strategic Partnership Elements Nemotron LLM Collaboration: Joint development of custom LLM with NVIDIA Provides "ability to really speed up the reasoning, planning, and execution" One option among multiple LLMs offered to customers Prescriptive guidance through AI Control Tower on when to use Nemotron vs. other models NVIDIA as a Customer: "NVIDIA...are redefining employee support with ServiceNow AI, with intelligent AI agents that proactively resolve issues, deliver personalized help, and provide answers in milliseconds." Partnership Significance: Validates ServiceNow's enterprise AI capabilities Demonstrates bi-directional value (NVIDIA as both partner and customer) Part of broader ecosystem partnerships announced during the quarter XXX Technical Integration Model Selection Framework: AI Control Tower provides prescriptive ways to select right models Nemotron positioned for specific reasoning and planning use cases Maintains customer choice with OpenAI, Gemini, and Claude options Focus on best model for specific use case rather than single model approach X. Cloud Computing Strategy XXX Multi-Cloud Philosophy Hyperscaler Relationships: Unique Position: "Only ones that cooperate with all three of the hyperscalers" Partners with AWS, Azure, GCP, and Oracle Not competing but complementing hyperscaler offerings Focus on enterprise application layer vs. infrastructure Integration Capabilities: Seamless integration across any cloud environment On-premises and cloud integration equally supported No vendor lock-in approach resonating with enterprises Protects customer investments across all platforms XXX Positioning vs. Hyperscalers McDermott on Hyperscaler Relationship: "Those are excellent companies. They're doing very creative and exciting things, and they all want to partner with us because of our leadership in the enterprise." Differentiation: Hyperscalers focused on infrastructure and model development ServiceNow provides enterprise-ready solutions and domain expertise Complexity of enterprise deployments requires ServiceNow's platform Hyperscalers "busy with other things" while ServiceNow focuses on enterprise XXX Cloud-Native Architecture Benefits Platform Advantages: Domain-specific platform optimized for enterprise "Secure, lightning fast, and inexpensive to run" Integrates with "exciting new companies" in the AI space Handles complexity of enterprise-ready solutions X. Data and AI Infrastructure XXX Workflow Data Fabric Adoption Metrics: Included in XX of top XX largest deals Combines data, analytics, and AI in unified platform Customers embracing vision of data fabric + agents for outcomes RaptorDB Pro Performance: "Continued to gain traction" "Every major region beat expectations in Q2" Core infrastructure for AI and data processing XXX Data Governance and Management Acquisition: "Only data catalog platform built on a knowledge graph" Highest user adoption in data catalog and governance category "Built for this agentic AI era" Provides innovative data governance for AI deployments XXX Enterprise Data Scale ServiceNow's Data Advantage: $X trillion in transactions processed XX billion workflows in flight across global economy Massive training data advantage for AI models Domain-specific data by industry vertical X. AI Transformation Impact on Business XXX Market Dynamics Customer Demand Signals: "AI transformation as priority number one" for enterprises globally IT budgets "highly resilient and increasingly focused on strategic mission-critical AI platforms" Customers asking to consolidate: "why do I have XX of these and X of those...Can you just get them out of here?" Industry Transformation: "CRM opportunity for ServiceNow really is huge" "Agentic AI represents a seismic shift that could render traditional CRM obsolete" Movement from "CRM screen" to "omnipresent AI agents embedded in everyday tools" XXX Financial Impact of AI Revenue Growth Drivers: AI Pro Plus products showing 50%+ quarter-over-quarter growth Average deal sizes increasing significantly with AI products Multi-product adoption accelerating (all top XX deals had 5+ products) Future Targets: $X billion in Now Assist ACV by 2026 $15+ billion subscription revenue target for 2026 Knowledge 2025 already generated $XXX billion in pipeline XXX Competitive Implications McDermott's Bold Statement: "We don't live in a SaaS neighborhood. We live in an enterprise AI neighborhood on a one-of-one platform." Market Positioning: Not competing with hyperscalers or LLM providers Partnering with all major AI players Focused on being the orchestration and governance layer "Software industrial complex of the 21st century is converging into ServiceNow" X. AI Implementation and Adoption Patterns XXX Customer Deployment Examples Notable AI Implementations: ExxonMobil: Implementing AI agents for enhanced employee experiences and operational processes Standard Chartered: Using AI Control Tower with RaptorDB for agentic AI governance State of California: Deploying AI-powered CRM across multiple departments Banco Davivienda (Brazil): Transforming customer service with anticipatory AI Intuit: Expanding to "done-for-you agentic AI experiences" for employees Starbucks: Using AI to enhance technology ecosystem across support centers North Carolina DOT: AI Control Tower for governing all AI solutions with compliance XXX AI Adoption Velocity Acceleration Indicators: AI Control Tower: Full-year target achieved in XX days Now Assist usage: 9x growth in X months Pro Plus deal count: 50%+ growth quarter-over-quarter New logo ACV: 100%+ year-over-year growth (AI driving new conversations) XXX Enterprise AI Readiness McDermott on Enterprise Complexity: "Six decades of complexity and pain, to understand that takes a lot. And also those excellent companies that you mentioned [hyperscalers], they're busy with other things." ServiceNow's Advantages: Deep understanding of enterprise complexity Platform started in IT but expanded across organization Handles compliance, regulatory, risk, and data complexity Enterprise-ready from day one vs. consumer-first approaches X. Future AI Roadmap and Vision XXX Near-Term AI Initiatives Product Development: Continued expansion of Now Assist across all products Enhancement of AI Control Tower capabilities Industry-specific AI agent development Deeper integration with partner ecosystems XXX Long-Term AI Vision McDermott's Closing Vision: "People and AI together will create new businesses, new discoveries, and catalyze economic growth in every corner of the world. The world works with ServiceNow because we are delivering AI to empower people everywhere." Strategic Imperatives: Become the "AI operating system for the agentic enterprise" Enable seamless human-AI collaboration Drive "monumental future value creation" Lead the transformation from traditional software to AI-driven systems X. Key Takeaways and Implications ServiceNow has successfully pivoted from workflow automation to becoming the enterprise AI platform leader The AI Control Tower positions ServiceNow uniquely as the governance and orchestration layer for all enterprise AI, not just their own Partnership strategy with NVIDIA and others demonstrates commitment to best-of-breed rather than walled garden approach Explosive adoption metrics (9x usage growth, 60-day target achievement) suggest product-market fit is exceptional Multi-cloud, multi-LLM strategy protects customer investments while providing flexibility Internal AI usage generating massive efficiencies validates the platform for customers Vision of human-AI collaboration rather than replacement resonates with enterprise buyers Financial performance (21.5% growth at $12B+ scale) demonstrates AI is driving real revenue, not just hype XXX engagements  **Related Topics** [automation](/topic/automation) [positions](/topic/positions) [coins ai](/topic/coins-ai) [quarterly earnings](/topic/quarterly-earnings) [$now](/topic/$now) [servicenow](/topic/servicenow) [stocks technology](/topic/stocks-technology) [$nvda](/topic/$nvda) [Post Link](https://x.com/TheValueist/status/1948163096016494859)
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TheValueist @TheValueist on x 1565 followers
Created: 2025-07-23 23:27:31 UTC
$NOW ServiceNow Q2 2025 Earnings Call: Comprehensive AI, Cloud Computing & NVIDIA Analysis
Executive Summary
ServiceNow's Q2 2025 earnings call revealed an aggressive AI-first strategy that positions the company as the central orchestration layer for enterprise AI deployments. The company has transformed from a workflow automation platform to what CEO Bill McDermott calls "the extensible AI operating system for the agentic enterprise." With AI Control Tower exceeding full-year targets in just XX days, Now Assist usage growing 9x in three months, and a deepening partnership with NVIDIA on custom LLMs, ServiceNow is capturing the enterprise AI transformation opportunity at an unprecedented pace.
X. AI and Generative AI: Comprehensive Analysis
XXX Core AI Platform Components
AI Control Tower Performance: Exceeded initial full-year net new ACV expectations in just XX days since launch Function: Acts as the "central nervous system" for managing AI complexity across enterprises Capability: Manages both ServiceNow's own AI agents and third-party agents from OpenAI, Microsoft, and others Strategic Importance: Positions ServiceNow as the governance layer for all enterprise AI, not just their own products
AI Agent Fabric Infrastructure layer for deploying AI agents across the enterprise Enables seamless integration of multiple AI agents working together Part of the complete agentic platform announced at the call
AI Agent Studio No-code platform for creating AI agents Democratizes AI agent creation across the organization Enables business users to build agents without technical expertise
XXX Now Assist Product Suite Performance
Overall Metrics: Net New ACV "beat expectations once again in Q2" Largest Now Assist deal to date exceeded $XX million XX deals with X or more Now Assist products Usage increased 9x over the last three months Plus products included in XX of top XX deals
Product-Specific Performance: ITSM Plus: Deal value quadrupled year-over-year CSM Plus: Deal value quadrupled year-over-year ITAM Plus: Deal value tripled year-over-year HRSD Plus: Deal value doubled year-over-year ITAM Now Assist: Net new ACV grew nearly 6x quarter-over-quarter with average deal sizes more than tripling Now Assist for SecOps and Risk: Combined net new ACV more than doubled quarter-over-quarter Creator Now Assist: Average deal sizes quadrupled year-over-year
Key AI Pro Plus Metrics: Deal count up over XX% quarter-over-quarter Includes ITSM, CSM, and HR capabilities Consumption-based model showing strong adoption as usage scales
XXX AI-Driven Internal Efficiency Gains
Quantified Benefits: $XXX million in headcount savings projected for 2025 $XXX million total value from internal AI usage expected in 2025 XX% improvement in sales productivity through AI automation Over XX% of support functions now handled by AI agents
Specific Applications: Engineering: Using Code Assist and Code Generation to "unlock significant capacity" Sales: XX% productivity improvement by eliminating setup work Support Functions: Customer support, IT support, risk compliance, security largely automated Now on Now Program: ServiceNow using its own AI innovations internally
XXX Agentic AI Strategy and Vision
McDermott's Vision Statement: "AI work is cross-functional work. ServiceNow integrates the entire tech stack on-prem or in the Cloud, any system, any LLM, any data source, and we bring all of that data into a single model."
Key Agentic AI Concepts: XXXXXXX agents currently in workflow within ServiceNow internally Agentic Workforce Management: New standard for hybrid human-agent team leadership Agents that "team up, work together, and collaborate together across business processes" Vision of agents being "more collaborative and more team oriented and more results oriented than people"
Customer Use Cases: Insurance: AI agents handling accident-to-claim settlement in real-time on mobile devices Multi-lingual Support: Agents communicating in any language on the fly Cross-functional Processes: Hire-to-retire, procure-to-pay, design-to-product, quote-to-cash workflows
XXX AI Platform Differentiation
"Any-to-Any" Integration Philosophy: Any Cloud: Works with all hyperscalers (AWS, Azure, GCP) plus Oracle Any Data Source: Integrates systems of record, data warehouses, data lakes Any LLM: Supports all major language models for different use cases Any Agent: Manages ServiceNow agents plus third-party agents
Enterprise-Ready AI Capabilities: Domain-specific AI training by industry Secure, compliant, and regulated AI deployments "$1 trillion transactions, XX billion workflows" as training data Lightning-fast performance optimized for enterprise scale
XXX Now Next AI Program
Program Overview: Strategic customer-focused initiative to accelerate AI adoption Deploys engineering teams directly with customers C-suite level engagement for strategic AI transformation Focus on getting customers "live fast" with AI implementations
Approach: Senior-level, strategic customer engagements Combines engineering, sales consulting, and solution consulting talent Top-down approach starting with C-suite rather than bottom-up Creates broader use cases and opportunities through strategic discussions
X. NVIDIA Partnership Deep Dive
XXX Strategic Partnership Elements
Nemotron LLM Collaboration: Joint development of custom LLM with NVIDIA Provides "ability to really speed up the reasoning, planning, and execution" One option among multiple LLMs offered to customers Prescriptive guidance through AI Control Tower on when to use Nemotron vs. other models
NVIDIA as a Customer: "NVIDIA...are redefining employee support with ServiceNow AI, with intelligent AI agents that proactively resolve issues, deliver personalized help, and provide answers in milliseconds."
Partnership Significance: Validates ServiceNow's enterprise AI capabilities Demonstrates bi-directional value (NVIDIA as both partner and customer) Part of broader ecosystem partnerships announced during the quarter
XXX Technical Integration
Model Selection Framework: AI Control Tower provides prescriptive ways to select right models Nemotron positioned for specific reasoning and planning use cases Maintains customer choice with OpenAI, Gemini, and Claude options Focus on best model for specific use case rather than single model approach
X. Cloud Computing Strategy
XXX Multi-Cloud Philosophy
Hyperscaler Relationships: Unique Position: "Only ones that cooperate with all three of the hyperscalers" Partners with AWS, Azure, GCP, and Oracle Not competing but complementing hyperscaler offerings Focus on enterprise application layer vs. infrastructure
Integration Capabilities: Seamless integration across any cloud environment On-premises and cloud integration equally supported No vendor lock-in approach resonating with enterprises Protects customer investments across all platforms
XXX Positioning vs. Hyperscalers
McDermott on Hyperscaler Relationship: "Those are excellent companies. They're doing very creative and exciting things, and they all want to partner with us because of our leadership in the enterprise."
Differentiation: Hyperscalers focused on infrastructure and model development ServiceNow provides enterprise-ready solutions and domain expertise Complexity of enterprise deployments requires ServiceNow's platform Hyperscalers "busy with other things" while ServiceNow focuses on enterprise
XXX Cloud-Native Architecture Benefits
Platform Advantages: Domain-specific platform optimized for enterprise "Secure, lightning fast, and inexpensive to run" Integrates with "exciting new companies" in the AI space Handles complexity of enterprise-ready solutions
X. Data and AI Infrastructure
XXX Workflow Data Fabric
Adoption Metrics: Included in XX of top XX largest deals Combines data, analytics, and AI in unified platform Customers embracing vision of data fabric + agents for outcomes
RaptorDB Pro Performance: "Continued to gain traction" "Every major region beat expectations in Q2" Core infrastructure for AI and data processing
XXX Data Governance and Management
Acquisition: "Only data catalog platform built on a knowledge graph" Highest user adoption in data catalog and governance category "Built for this agentic AI era" Provides innovative data governance for AI deployments
XXX Enterprise Data Scale
ServiceNow's Data Advantage: $X trillion in transactions processed XX billion workflows in flight across global economy Massive training data advantage for AI models Domain-specific data by industry vertical
X. AI Transformation Impact on Business
XXX Market Dynamics
Customer Demand Signals: "AI transformation as priority number one" for enterprises globally IT budgets "highly resilient and increasingly focused on strategic mission-critical AI platforms" Customers asking to consolidate: "why do I have XX of these and X of those...Can you just get them out of here?"
Industry Transformation: "CRM opportunity for ServiceNow really is huge" "Agentic AI represents a seismic shift that could render traditional CRM obsolete" Movement from "CRM screen" to "omnipresent AI agents embedded in everyday tools"
XXX Financial Impact of AI
Revenue Growth Drivers: AI Pro Plus products showing 50%+ quarter-over-quarter growth Average deal sizes increasing significantly with AI products Multi-product adoption accelerating (all top XX deals had 5+ products)
Future Targets: $X billion in Now Assist ACV by 2026 $15+ billion subscription revenue target for 2026 Knowledge 2025 already generated $XXX billion in pipeline
XXX Competitive Implications
McDermott's Bold Statement: "We don't live in a SaaS neighborhood. We live in an enterprise AI neighborhood on a one-of-one platform."
Market Positioning: Not competing with hyperscalers or LLM providers Partnering with all major AI players Focused on being the orchestration and governance layer "Software industrial complex of the 21st century is converging into ServiceNow"
X. AI Implementation and Adoption Patterns
XXX Customer Deployment Examples
Notable AI Implementations: ExxonMobil: Implementing AI agents for enhanced employee experiences and operational processes Standard Chartered: Using AI Control Tower with RaptorDB for agentic AI governance State of California: Deploying AI-powered CRM across multiple departments Banco Davivienda (Brazil): Transforming customer service with anticipatory AI Intuit: Expanding to "done-for-you agentic AI experiences" for employees Starbucks: Using AI to enhance technology ecosystem across support centers North Carolina DOT: AI Control Tower for governing all AI solutions with compliance
XXX AI Adoption Velocity
Acceleration Indicators: AI Control Tower: Full-year target achieved in XX days Now Assist usage: 9x growth in X months Pro Plus deal count: 50%+ growth quarter-over-quarter New logo ACV: 100%+ year-over-year growth (AI driving new conversations)
XXX Enterprise AI Readiness
McDermott on Enterprise Complexity: "Six decades of complexity and pain, to understand that takes a lot. And also those excellent companies that you mentioned [hyperscalers], they're busy with other things."
ServiceNow's Advantages: Deep understanding of enterprise complexity Platform started in IT but expanded across organization Handles compliance, regulatory, risk, and data complexity Enterprise-ready from day one vs. consumer-first approaches
X. Future AI Roadmap and Vision
XXX Near-Term AI Initiatives
Product Development: Continued expansion of Now Assist across all products Enhancement of AI Control Tower capabilities Industry-specific AI agent development Deeper integration with partner ecosystems
XXX Long-Term AI Vision
McDermott's Closing Vision: "People and AI together will create new businesses, new discoveries, and catalyze economic growth in every corner of the world. The world works with ServiceNow because we are delivering AI to empower people everywhere."
Strategic Imperatives: Become the "AI operating system for the agentic enterprise" Enable seamless human-AI collaboration Drive "monumental future value creation" Lead the transformation from traditional software to AI-driven systems
X. Key Takeaways and Implications
ServiceNow has successfully pivoted from workflow automation to becoming the enterprise AI platform leader
The AI Control Tower positions ServiceNow uniquely as the governance and orchestration layer for all enterprise AI, not just their own
Partnership strategy with NVIDIA and others demonstrates commitment to best-of-breed rather than walled garden approach
Explosive adoption metrics (9x usage growth, 60-day target achievement) suggest product-market fit is exceptional
Multi-cloud, multi-LLM strategy protects customer investments while providing flexibility
Internal AI usage generating massive efficiencies validates the platform for customers
Vision of human-AI collaboration rather than replacement resonates with enterprise buyers
Financial performance (21.5% growth at $12B+ scale) demonstrates AI is driving real revenue, not just hype
XXX engagements
Related Topics automation positions coins ai quarterly earnings $now servicenow stocks technology $nvda