ServiceNow Strong Results Overshadowed by AI Disruption Fear (1)

ServiceNow Inc. gave a sales outlook in the current quarter that was stronger than expected, but failed to reduce investor anxieties that artificial intelligence will disrupt the software maker’s business.

Subscription revenue in the period ending in March will be about $3.65 billion, the company said Wednesday in a statement. Analysts, on average, estimated $3.58 billion, according to data compiled by Bloomberg. Current remaining performance obligation, a measure of near-term bookings, is expected to expand almost 23% in the quarter, also faster than projected.

Traditional leaders of the application software industry — such as ServiceNow, Salesforce Inc., and ...