ServiceNow has as soon as once more delivered on what Indian IT companies have been promising each time—turning generative AI into precise income. 

In its second-quarter earnings, the California-based enterprise software program firm posted $3.11 billion in AI subscription income, a 23% leap from final yr. 

The corporate attributed its sturdy efficiency to the continued adoption of Now Help, its flagship generative AI platform, by means of which it’s incomes revenues. 

“Each enterprise course of in each business is being refactored for agentic AI,” stated ServiceNow chair and CEO Invoice McDermott in a launch.

ServiceNow’s CFO Gina Mastantuono stated that bookings for Now Help “surpassed expectations,” and it was pushed by a rise within the offers.

“ServiceNow holds a definite benefit, as a result of we’re the one firm that has AI plus knowledge plus workflows on one platform, and in an agentic AI world, that’s a recreation changer and an enormous differentiator,” she stated in an interview with CRN.

Deal Volumes Grew 50% with AI in Them

Based on Mastantuono, AI is now embedded throughout the platform—and the outcomes present. 

Within the second quarter, she stated twenty-one offers concerned 5 or extra of their AI merchandise. “Deal quantity elevated by 50% quarter-over-quarter, they usually secured their largest Now Help AI deal so far, valued at over $20 million,” Mastantuono stated. 

The corporate isn’t just main the AI race, but in addition working it themselves and that makes them stand out from most Indian IT companies.

Whereas TCS is incorporating AI brokers into 150+ shopper conversations and Infosys is working 300+ agentic AI tasks, they don’t seem to be reporting but on how a lot cash they’re making from it. 

Wipro, on the brighter aspect, had generative AI in most of its offers—however no breakdown on revenues regardless of doubling the overall offers for the quarter. HCLTech was fortunately flaunting its OpenAI deal all through the quarter regardless of a ten% decline in revenue.

In distinction, ServiceNow had 528 clients with contracts price over $5 million yearly, up from 508 final quarter. 

Mastantuono was additionally fast to level out that whereas the US federal sector is dealing with headwinds—tightening budgets and evolving mission calls for—ServiceNow nonetheless closed six new federal clients in Q2.

“We’re delivering precisely what federal businesses want most proper now. It’s what the administration is driving: velocity, effectivity, modernisation, and scale, particularly for agentic AI,” she stated within the interview.

This can be a important distinction. Whereas Indian companies proceed to pilot AI tasks in silos, usually not sure about whether or not to guess on GPT or Mistral or Claude, ServiceNow is enterprise enterprise-wide rollouts with measurable ROI. 

She additionally famous that the corporate’s Workflow Knowledge Material, which allows clients to combine real-time knowledge from any supply to energy AI, was included in 17 of the highest 20 offers. “RaptorDB, which is our next-gen database for AI, continues to realize traction,” Mastantuono added.

So Indian IT?

For Indian IT, which frequently factors to its giant shopper base and area experience, ServiceNow’s outcomes are a wake-up name. The corporate just isn’t solely capitalising on the hype round AI but in addition constructing a repeatable, monetizable enterprise mannequin round it. 

Simply final quarter, it stated Now Help is on monitor to hit $1 billion in ACV by 2026, up from $250 million now. That projection already seems conservative.

The corporate can be displaying indicators of worldwide energy. “Each main area beat expectations,” Mastantuono stated, underscoring how the AI technique isn’t restricted to North America.

In Q1, ServiceNow had declared that AI isn’t just a product enhancement—it’s a enterprise. “We’re main the AI race as a result of we ourselves are working it,” McDermott stated again then. This quarter solely reaffirmed that assertion.

In the meantime, Indian IT’s obsession with GenAI pilots and proof-of-concepts continues. There are a number of indicators of full-scale deployments, not to mention disclosures of AI-driven income. 

Even Accenture is overtly attributing $1.5 billion in generative AI bookings for Q3FY25, and Indian IT must be paying very shut consideration.

The large query now could be whether or not Indian IT can ever catch as much as ServiceNow or Accenture’s AI earlier than it’s too late.