ServiceNow soars as government sales jump, despite DOGE cuts
Subscription enterprise software company ServiceNow romped out of the gates Thursday after posting top- and bottom-line beats in the first quarter and reassuring analysts that its growing government contracting business can maintain momentum in the face of Tesla CEO Elon Musk’s wide-ranging efforts to disrupt federal government operations and spending.
The company reported that its Q1 sales to US government clients grew by over 30% year on year, including 11 federal deals valued at $1 million, up from eight a year ago. Two of those deals were worth over $5 million.
“We will continue our productive discussions with senior administration and DOGE officials. The engagement has been very positive,” Chief Executive William McDermott said. “We have a shared ambition to transform government and the way it interacts with citizens.”
The results seem to be rippling to other workplace software companies: Salesforce and Atlassian are also surging this morning.
The company reported that its Q1 sales to US government clients grew by over 30% year on year, including 11 federal deals valued at $1 million, up from eight a year ago. Two of those deals were worth over $5 million.
“We will continue our productive discussions with senior administration and DOGE officials. The engagement has been very positive,” Chief Executive William McDermott said. “We have a shared ambition to transform government and the way it interacts with citizens.”
The results seem to be rippling to other workplace software companies: Salesforce and Atlassian are also surging this morning.
