AI Business
3d ago
ServiceNow CEO Bill McDermott addresses stock decline and AI's role in future growth
May 8, 2026
AI Summary
ServiceNow's CEO Bill McDermott has responded to a significant stock decline, asserting that fears of a 'Saaspocalypse' are unfounded. He believes that AI will enhance the company's growth, projecting revenue to reach $30 billion by 2030 and emphasizing the importance of enterprise software in leveraging AI effectively.
- Bill McDermott became CEO of ServiceNow in late 2019, shortly before the COVID pandemic began.
- Under his leadership, ServiceNow's annual revenue grew from $3.46 billion in 2019 to $13.3 billion in 2025, with expectations to exceed $15 billion this year.
- Despite this growth, ServiceNow's stock has fallen 39% this year and over 55% from its 52-week high, attributed to concerns over the future of software-as-a-service (SaaS) businesses amid AI advancements.
- McDermott dismissed the 'Saaspocalypse' narrative, arguing that AI will serve as a positive force for ServiceNow, not a negative one.
- He announced a financial forecast aiming for $30 billion in revenue by 2030 and highlighted recent acquisitions, including cybersecurity firm Armis and AI startup Moveworks, to bolster ServiceNow's offerings.
- McDermott emphasized that AI's effectiveness relies on access to enterprise data, which is facilitated by companies like ServiceNow, and expressed confidence in the company's future growth potential, suggesting it could become a trillion-dollar company.
- He noted that many SaaS competitors are no longer experiencing high growth, contrasting their situation with ServiceNow's performance.
- McDermott remains optimistic about AI companies going public, believing it will bring clarity and rationality to the market, benefiting investors and the broader industry.
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