ServiceNow slips even as Q2 results top estimates, unveils Nvidia partnership
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ServiceNow (NYSE:NOW) shares fell more than 1.5% in extended-hours trading on Wednesday even as the cloud computing software company posted second-quarter results that topped estimates and announced several generative AI capabilities, including a partnership with Nvidia (NVDA).
For the period ending June 30, ServiceNow (NOW) generated an adjusted earnings of $2.37 per share on $2.15B in revenue, including subscription revenue of $2.075B, up 25% year-over-year.
The company added that its current remaining performance obligations came in at $7.2B, up 25% year-over-year or 24% for constant currency.
ServiceNow (NOW) added that it closed 70 transactions with more than $1M in net new annual contract value, up 30% year-over-year. 
A consensus of analysts expected the company to earn $2.05 per share on $2.13B in revenue during the period.
Looking to the third-quarter, ServiceNow (NOW) believes subscription revenue will be within a range of $2.19B to $2.2B, above the $2.15B estimate. For the full-year, subscription revenue is likely to fall within a range of $8.58B to $8.6B, above the $8.51B estimate.
The Bill McDermott-led ServiceNow (NOW) also unveiled AI Lighthouse, a partnership with Nvidia (NVDA) and Accenture (ACN) designed to fast track the development and adoption of generative AI capabilities.
ServiceNow (NOW) will host a conference call at 5 p.m. EST to discuss the results.
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