ServiceNow shares have fallen approximately 30% over the past 12 months, reflecting a combination of slowing revenue growth and broader macroeconomic pressures on enterprise software spending. In its most recent quarter, the company reported revenue growth of 18%, down from 24% a year earlier, while billings growth decelerated to 15%. Despite adding over 300 net new customers in the quarter—bringing the total customer count to more than 9,500—ServiceNow saw renewal rates slip slightly to 97%, compared with 98% in the prior-year period. Investors have also taken note of extended sales cycles for large enterprise deals and cautious CIO surveys showing IT budgets rising at their slowest pace since 2020. On the positive side, the company’s AI-infused Now Platform drove a 35% increase in new AI-related contract value, with marquee deployments at three Fortune 100 companies, underscoring continued demand for generative AI workflow solutions.

ServiceNow announced the appointment of Hossein Nowbar as President and Chief Legal Officer, expanding the company’s executive leadership team. Nowbar joins from Microsoft, where he spent over 25 years and most recently served as Chief Legal Officer and Corporate Vice President, overseeing global policy, compliance, and regulatory affairs. In his new role, Nowbar will lead ServiceNow’s legal, ethics, governance, compliance, risk, corporate affairs and sustainability functions, working alongside CEO Bill McDermott to support the company’s profitable growth strategy. His arrival strengthens the legal bench ahead of an expected push into new international markets and complex regulatory environments for AI-driven enterprise software. Russ Elmer, ServiceNow’s Chief Legal Officer since 2018, will transition to Special Counsel to ensure continuity on high-priority legal matters.