ServiceNow reported a second-quarter profit of $298 million, or 29 cents a share, a decrease from $385 million, or 37 cents a share, in the prior year. However, adjusted per-share earnings, excluding one-time items, reached 90 cents, surpassing analysts' expectations of 86 cents.

Revenue for the quarter ending June 30 saw a significant increase of 24%, reaching $3.99 billion. This growth was primarily driven by subscription revenue, which experienced a similar upward trend. The company attributed its strong sales performance to robust demand, particularly from the U.S. federal government.

Analysts, according to Fact Set, had projected revenue of $3.93 billion. ServiceNow's performance this quarter highlights its ability to secure higher contract values, contributing to its overall revenue growth despite a year-over-year dip in reported profit.