“We already have several customers in beta and soon will be GA.”

In context

“William McDermott (Chairman and Chief Executive Officer): Thank you very much, Darren, and thanks, everybody, for joining today's call. I looked at the transcript from an earnings call seven years ago. Back then, we said ServiceNow would be the defining enterprise software company of the 21st century. I thought I'd give you a report out. Since then, we beat expectations in every quarterly report, expanded the profitability and free cash flow of the company, quintupled our total addressable market, accelerated six of our own unicorns to $1 billion or multibillion-dollar businesses, processed billions of workflows and trillions of transactions, grew the partner ecosystem globally, architected the most complete AI control tower for the enterprise, maintained our best-in-class renewal rate, increased our brand value, offered our customers deep enterprise context, unlimited choice and differentiated capabilities. And of course, we set a course to $32 billion in revenue in 2030 operating at the rule of 60 and beyond. So today, we're adding a stunning Q2 print to this track record. Subscription revenue growth was 23% in constant currency, 1.5 points above the high end of our guidance. CRPO growth was 21.5% in constant currency, more than two points above our guidance. Operating margin was 29.5%, three points above our guidance. We had 123 deals greater than $1 million in net new ACV, up 40% year-over-year. ServiceNow AI ACV exceeded expectations again, surpassing $1 billion, keeping us on track to beat our target of $1.5 billion ACV by the end of 2026. We're feeling real good about it. What does it all mean? We are who we said we were. The path to value isn't just making AI. It's deploying AI securely across the enterprise. IDC forecast spending on AI software is going to grow 53% this year, 17% faster than AI hardware. Whichever chip wins, whichever lab wins, whatever price per token regime prevails, the enterprise needs one governed layer of record for full work, and ServiceNow offers needed certainty in an uncertain stack. Our platform is optionality on all AI outcomes, not a bet on anyone. We're in the bull's eye of AI, cybersecurity, workflow orchestration, integration and automation. That's why we're growing fast — and it's why we're only just getting started. We are who we said we were. Over the past several months, we've addressed a number of really good questions during meetings with investors. Today, I'd like to give every investor the professional courtesy of those exchanges. One question we regularly get is: Is ServiceNow becoming a cybersecurity company? Here's the answer. ServiceNow already was a $1 billion-plus cybersecurity business. Today, our risk and security business is the fastest-growing of the top 10 cyber companies in the enterprise. I'll make it very clear. We now have a 10-figure cybersecurity business that's growing faster than all the other top cybersecurity companies. We're building the world's most integrated end-to-end security platform across cyber, risk and compliance, agentic incident response, exposure management, identity and access security, cyber-physical security and continuous vulnerability detection. The security stack sits on top of our ITSM and ITOM core infrastructure. So think about it: AI control tower plus Armis plus Vesa. Our customers want every AI enterprise to be visible, governed and secured in one command center. They don't want any blind spots. There are 2.2 billion agents entering the enterprise globally. That's 2.2 billion new identities — a quarter of today's human population. Vesa maps access across human, machine and AI identities. We'll have 40 billion connected devices in the world in the next four years. Armis already tracks seven billion of those devices in real time. Many customers, especially in the public sector, seek out Armis because government policies require state-of-the-art visibility. The attack surface — every ungoverned asset and identity — multiplies the blast radius. When you integrate awareness and identity with the actionability of the ServiceNow platform, you have a complete 360-degree capability to secure the enterprise. It's highly telling that the AI control tower is already gaining traction with our partner ecosystem. In fact, one global services firm is leveraging this portfolio to help their clients rapidly triage their cybersecurity activity. They're hunting down problems with ServiceNow and others are rapidly following suit. So once again, this is the eighth-largest cybersecurity business in the enterprise and the fastest growing, and we are just getting started. Another question we get is: When will customer deployment of AI mark an inflection point for ServiceNow's growth? Here's the answer. It already has. The percentage of renewal customers purchasing an agentic AI for the first time doubled quarter-over-quarter and year-over-year. So customers that weren't already on the AI journey are signing up fast. Most customers are now completely allergic to anything that looks like a project. They only want deterministic solutions. ServiceNow only does deterministic solutions. That's a big reason why customers with agentic AI in production have grown ninefold over the last nine months. So here's a few of many examples. The Department of the Air Force is expanding its use of the ServiceNow AI platform. The deployment will unify IT operations and enterprise visibility. Experian is using ServiceNow to automate intelligence at scale. We will also integrate our platforms, embedding Experian data and decisioning into existing ServiceNow workflows in a five-year deal, and many deals are going longer — you should see that in the CRPO or in the RPO, by the way. Maybank, Malaysia's largest bank, will leverage ServiceNow to establish a resilient operation center to fortify security and resilience. The U.S. federal government's largest IT contractors and agencies are now consolidating asset discovery and security response on ServiceNow. One agency is using Armis to move from asset-blind incident response to comprehensive threat hunting. Hitachi will standardize enterprise asset management across its global businesses on ServiceNow. Additionally, we're partnering with them to advance the Hitachi Intelligent Infrastructure monitoring solution. The city of Raleigh became the first local government to deploy ServiceNow's Level 1 AI specialists in production with no in-house AI engineering bench behind it. That's right — it's on its own. The city is moving to become fully autonomous, one ticket category at a time. Many enterprise customers are at various stages of the same journey. They are progressing from supervised to autonomous operations. A large global consumer goods company partnered with ServiceNow to launch its first agentic AI use case in ITSM to triage workflows. The customer rapidly deployed a repeatable, governance-first blueprint for future agentic use cases. A leading global food and beverage company found itself with AI agents proliferating across five platforms simultaneously with no unified way to govern them. Their CTO has a mandate: no agent goes live without our clear governance, risk, value validation and observability. AI control tower went live this spring. They can now see in real time who was building AI and whether it had been approved; the value for them was immediate. It's worth highlighting that IT operations management continues to be a source of strength to ServiceNow, extending its outperformance in Q2, with attach rates to ITSM continuing to rise year-over-year. Our CMDB gives customers a trusted system of record for their infrastructure, applications, services and dependencies. ServiceNow delivers the intelligent layer and the infrastructure it runs on. We also get asked: Is ServiceNow gaining traction in the CRM marketplace? Here's the answer. The market participants in the enterprise are very good. They're really good companies, and they are not going away. Having said that, we're doing very well. Already, we're a $2 billion ACV business. CRM net new ACV growth accelerated again on a year-over-year and quarter-over-quarter basis. Sales CRM average deal size doubled year-over-year. We're on track to execute over two billion service CRM cases this year. In addition, partners are increasingly positioning ServiceNow as an operational CRM platform, opening executive conversations across the C-suite. For example, in Q2, a partner closed a full front-office replacement of a major CRM deployment in just two months. A leading North American automotive marketplace outgrew its legacy CPQ provider; it couldn't handle the volume or complexity of the business after five vendors failed to deliver. ServiceNow will help their sales teams achieve the speed and accuracy to operate at scale. An American software leader selected ServiceNow to modernize a highly customized quoting environment; our ability to connect CPQ with broader workflows, customer data and service operations was a key differentiator in the win. A leading North American telecom infrastructure provider selected us to unify commercial and field operations on a single platform. ServiceNow will scale volume threefold with no added headcount and cut repricing from weeks to hours. A regional financial institution consolidated its loan origination workflow onto ServiceNow's unified CRM platform, replacing legacy point solutions. Here's the big one: Voice is the next frontier, and we're winning it. We just proved something extraordinary. A large airline has gone all in, running their customer service voice calls on ServiceNow's voice AI CRM agents. This is live in production and handling five million annual voice calls in year one alone. The results speak for themselves. Customer satisfaction is off the charts. We also get asked about ServiceNow's role in the HR stack. Here's the answer. Employee Works is the strategic entry point for enterprise-wide employee experiences. This combines Moveworks conversational AI with ServiceNow workflows to create a single place to search, self-serve and take action across HR, IT and all workplace services. As Fortune 500 customers adopt Employee Works, we're seeing it pull through broader HR and employee experience opportunities, a similar pattern to what's happening in the CRM business. We get asked about the industry dynamics in enterprise AI. Here's the answer. Innovating for the enterprise is like politics — it's pretty easy to make noise, hard to make progress. One of the reasons Knowledge 2026 was the biggest we ever hosted is because customers are desperate to make real progress with a proven innovator they can trust. Sessions on ITSM, ITOM and AI control tower were all oversubscribed because the influx of AI creates more activity for IT, not less. Customers demoed our latest product releases, including new AI specialists for IT, CRM, employee service and security. They learned about ServiceNow Action Fabric. This enables any agent, Claude, Copilot or homegrown model to tap directly into secure, governed enterprise actions headlessly. With so much data fragmentation, they wanted to understand ServiceNow's context engine and autonomous data analytics which resolved data fragmentation across systems. With interest in ServiceNow rising, our innovation velocity is accelerating to meet the opportunity. For example, we have a big announcement coming very shortly: a business model evolution that expands our TAM with AI-native products. This new offering will be a conversational service desk experience — no tickets, and AI-coded automation. In a new product-led motion, we're targeting the Fortune 500,000. Many of whom we expect to replace their legacy offerings and bypass the startups, stop wasting time. We already have several customers in beta and soon will be GA. This is the first of many net-new AI-native products we'll be bringing to market in the weeks to come. Our dynamic engineering team is on fire. Another area of real progress for customers is the expansion of our strategic partnerships. Deeper integration is ServiceNow AI Control Tower and Microsoft Agent 365, extended agentic AI governance from desktops to data centers with Project Arc and new agents secured by the NVIDIA Open Runtime and governed by ServiceNow AI Control Tower. Enhanced collaboration between ServiceNow's AI-native employees and industry-led Accenture teams. There are too many to cover here. The momentum is everywhere. Here's a rapid-fire round for you. Are we worried about seat compression? Not at all. Our addressable user base is growing and 50% of our net new business is already non-seat-based. We keep seat-based pricing because customers prefer it for predictability, particularly now where a lot of pricing out there has been less than predictable. Our customer is going to build their own AI — I've yet to meet a customer who would even consider it. The best tech leaders know it will cost five to ten times more to build an agent versus run one on ServiceNow. Has the government business weakened? It's never been stronger. National governments, regional governments, local governments, they're all expanding their ServiceNow deployments. There are just a few questions that I hope you found useful in answering for you over these few moments we got the spend together. For now, I'll answer the final question: Why will ServiceNow get incremental share of wallet in the enterprise? I'll explain it as plainly as I can. There are many good companies in the enterprise today, and I do have respect for them all. Some have built very strong businesses over the years, others are new participants. They're good companies. The established companies aren't going anywhere, and I expect them to do very well. The new companies are growing fast and they'll be disruptive to some legacy point solutions and likely complementary to the bigger platforms. There are two major factors that should cement conviction in ServiceNow. One, if you were to assess all the players out there, which of them include a system of record, deep enterprise context, fully integrated governance and auditability, a proven global distribution channel, and a flexible pricing model that includes predictable consumption and outcome-based options — only ServiceNow's completeness of vision checks all of those boxes. The second factor is pure market fit. Which of the platforms in today's enterprise was designed from the ground up to integrate to all of these players? Again, the only answer is ServiceNow. Risk at scale is why CEOs are losing sleep right now. They read all these threat headlines. They see all these platforms and token invoices and they don't know what to do. This is the gap. ServiceNow is the bridge. We're in the control business — one platform, one system of action, any cloud, any agent, any workflow, any model, governed, secured and accountable. This is the AI control tower enterprise leaders now know is mission-critical: enterprise execution with cybersecurity at the core of the platform, and cybersecurity is growing real fast. ServiceNow is the rules and rails of the enterprise; we're in command of the agentic enterprise from workflow to cyber. Our position is real, it is durable, it is compounding. This is the foundation for a re-rating of ServiceNow. Let's get it started today. We said defining enterprise software company in the 21st century. We are who we said we were. Thank you for your time today, for your interest in ServiceNow and for your enduring support. We'll never take it for granted. With that, I'll hand things over to our President and CFO, Gina Mastantuono. Gina, over to you.”