ServiceNow, a subscription-based enterprise software company, saw its stock price surge Thursday after beating earnings expectations in the first quarter. The company reported a 30% year-over-year increase in sales to US government clients, including 11 federal deals valued at $1 million and two worth over $5 million.
Chief Executive William McDermott expressed optimism about the growth of ServiceNow’s government contracting business, stating that discussions with senior administration officials have been “very positive” and that the company shares a vision to transform government services. The news has had a ripple effect on other workplace software companies, such as Salesforce and Atlassian, which are also experiencing gains in their stock prices this morning.
McDermott’s comments come at a time when Tesla CEO Elon Musk is undertaking efforts to disrupt federal government operations and spending. However, it appears that ServiceNow’s focus on serving the US government has allowed the company to maintain momentum despite these challenges.
Source: https://sherwood.news/markets/servicenow-soars-as-government-sales-jump-despite-doge-cuts