Investing.com -- ServiceNow shares rose about 4.5% in extended trading on Wednesday after the enterprise software company reported second-quarter results that topped Wall Street estimates and raised its full-year subscription revenue outlook, buoyed by strong enterprise demand for its artificial intelligence offerings and continued momentum across its software platform. .

ServiceNow now expects full-year 2026 subscription revenue of $15.76 billion to $15.78 billion, reflecting approximately 22.5% growth, after raising its outlook on the back of stronger-than-expected net new ACV. For the third quarter, it forecast subscription revenue of $3.98 billion at the midpoint, while cautioning that a stronger U.S. dollar is expected to create a roughly $35 million headwind to third-quarter cRPO growth.

ServiceNow’s strong performance underscored accelerating enterprise demand for its AI platform, with the company surpassing $1 billion in AI annual contract value, delivering broad-based growth across key business metrics and raising its full-year subscription revenue outlook despite expected foreign exchange headwinds.

Adjusted earnings came in at $0.90 per share, beating analysts’ estimates of $0.86, while revenue rose to $3.99 billion from the consensus estimate of $3.93 billion. Subscription revenue increased 24.5% year over year to $3.88 billion, and current remaining performance obligations (cRPO), a key measure of future revenue, climbed 21% to $13.2 billion.

The workflow software company said AI annual contract value (ACV) surpassed $1 billion during the quarter, while agentic AI deployments increased ninefold over the past nine months. Management said demand for its AI Control Tower platform, security products and IT operations offerings continued to strengthen, helping drive robust customer spending. The company said it recorded 123 transactions worth more than $1 million in net new annual contract value during the quarter, up nearly 40% from a year earlier.

ServiceNow said enterprises are increasingly adopting its AI platform to govern, deploy and scale AI applications across organizations. During the quarter, the company expanded partnerships with NVIDIA, Microsoft, Amazon Web Services, Accenture, Experian, FedEx and Lenovo to broaden AI capabilities and enterprise adoption.